Checklist for Nonprofit Corporations
✔ Determine whether the advantages of being a non-profit exceed the substantial cost and time expenditures for your particular organization.
✔ Develop appropriate Bylaws and Organizational Resolutions, with the assistance of tax counsel, that will permit your organization to qualify as a not-for-profit corporation for state and federal tax purposes. Have these Bylaws legally adopted by the Organization.
✔ Authorize the incorporation in the appropriate state under the Non-Profit Corporation Statute. The process is the public filing of Articles of Incorporation for a Non-Profit Corporation. Make sure your Articles of Incorporation are prepared in compliance with the IRS 501(c)(3) norm. This requires a state filing fee.
✔ Obtain a federal EIN # for the corporation from the IRS by filing a FORM SS-4.
✔ Prepare IRS Form 1023 “Application for Tax-Exempt Status.” This will require substantial work by your tax/business lawyer, accountant or treasurer and key officers. When this detailed form is fully prepared, it must be filed with the IRS. The IRS demands a “user fee” for the determination of non-profit status based upon the proposed revenue of the organization.
✔ After the application is filed, frequently the IRS examiner asks for additional information. After several months the IRS then render its decision to grant or deny the request for tax-exempt status.
✔ Appropriate books and records must be kept for the organization. This includes tracking of donations, expenditures and classifications of income. A periodic Treasurer’s Report should be provided to the Board of Trustees and Membership.
✔ Each year the corporation must file an annual Federal tax return with the IRS.