We are experienced in the formation of nonprofit organizations and obtaining tax exempt status for these organizations from the IRS. We also help these clients secure exemption from state taxes.
The Internal Revenue Code provides for about 30 different categories of tax-exempt status. The most common is section 501(c)(3), the category which includes charities (including public supported charities and private foundations), churches, religious organizations, schools, and colleges. Most of the nonprofit organizations which are our clients fall into the 501(c)(3) category.
When we advise clients on forming new 501(c)(3) organizations, we provide advice as to the option of forming the organization as a trust or nonprofit corporation and explain governance options for nonprofit corporations. We also provide insight into governance options, such as whether to provide for voting members or to have a self-perpetuating board of directors. We prepare the articles of incorporation or trust in order to ensure that it will qualify under Treasury Regulations which govern federal tax exempt status. We prepare the bylaws, as well as the various "governance documents," such as a conflict of interest policy, records retention policy, and director (or trustee) indemnification policy.
After making sure the client understands these documents and approves them, we prepare the Form 1023 which is the application to the IRS for recognition of tax-exempt status as a 501(c)(3) organization. We respond to all IRS queries in regard to the application and governing documents, which is part of the review process conducted by the IRS. After securing tax-exempt status, we continue to assist the organization in compliance with federal and state laws, as well as in the development of fund raising plans.
If you plan to form a not-for-profit organization or serve as the manager of an NPO, you understand the importance of following the complex laws and regulations required to obtain and maintain tax-exempt status. If we can be of service to you or your organization, call or e-mail us to discuss your goals and concerns.