Happy Thanksgiving from ExpressTaxExempt

This Thanksgiving season we, at ExpressTaxExempt, are very grateful for each and every one of our users. Whether this was your very first year using our services, or if you are a loyal client, we are very appreciative of you choosing to do business with us, and we would like to say “Thank You.” As always, ExpressTaxExempt strives to be synonymous with everything concerning exempt organization filings, and with your continued support, there’s no doubt that we will further exceed all our expectations.

With ExpressTaxExempt, we offer support for the following tax-exempt forms:

• Form 990 (Long) - For exempt organizations with gross receipts greater than $200,000 and total assets greater than $500,000.
• Form 990-EZ - For exempt organizations with gross receipts greater than $50,000, but less than $200,000 and total assets less than $500,000.
• Form 990-N (e-Postcard) - For exempt organizations with gross receipts less than $50,000.
• Extension Form 8868 - Part I (Automatic 3-Month Extension) Part II (Additional, Non-Automatic 3-Month Extension)

For nonprofits or charities that are still looking to become tax-exempt, we will soon be offering support for Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code. With this all-inclusive, new support, you can fully complete a section 501(c)(3) application and download it directly from your account to mail to the IRS. You won’t find this service anywhere else online except for ExpressTaxExempt.

ExpressTaxExempt makes e-filing tax returns for exempt organizations easy, quick, and efficient with the following features:

• Interview-Style Format - Complete forms by answering a series of simple-worded questions. 
• Cloud Computing - Start, stop, and then continue from where you left off. Information entered remains in your account and accessed whenever you log in.
• Built-In Audit Check - Perform an automatic error check based on the information entered for any mistakes that could cause a rejection.
• Worry-Free Security - Encrypted site, McAfee secure certified, and protected by SSL (Secure Sockets Layer).
• Mobility - Mobile apps for e-filing Form 990-N (e-Postcard) & Extension Form 8868.
• Email Notification - You receive notifications when forms have been transmitted, accepted, or rejected, and notifications when it’s time to e-file again.

As you spend the holiday this week with family and friends, we’ll be doing the same. Our office will be open on Wednesday, November 25, during our normal business hours of 9 a.m. to 6 p.m., EST; our support team can be reached at (704) 839-2321. We will be closed on Thanksgiving Day and only offer email support (support@expresstaxexempt.com) on Friday, November 27; normal business operations will resume on Monday, November 30.

We wish you all a safe and happy Thanksgiving, and thank you for choosing ExpressTaxExempt for your exempt organization e-filings.

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A Form 1023 Thanksgiving

The most common tradition for the Thanksgiving holiday is probably being around family and friends. While some of you may not have to travel too far, the rest of you might have to cross a great distance to be near those dear to your hearts. 

Whether you’re visiting for just a day, or you’re having one of those ol’ school, 5-day family get-togethers, you’re most likely planning out things before you take your trip, things like what dish you may have offered to bring, or things necessary for overnight stays. The point is that you’re preparing beforehand rather than just showing up with nothing at all.

Much like preparing for a trip, you can’t just dive-in head first to fill out a Form 1023 for tax exemption. You should have your organization’s records in order or else you’ll find yourself losing time going back and forth trying to find the correct information. Even if you do have your records organized, understand that you may still need to consult a tax professional when presenting your organization for tax exemption.

Imagine your mother’s or grandmother’s world famous turkey stuffing, if you can. Even though you brought all the ingredients for it, you probably still need her help to make it as tasty as you remember. But you still have everything to at least get started. With the Form 1023, the following documents are needed before you even begin to properly start the form:

What is Required to File Form 1023

• Employer Identification Number (EIN)
• Organizing Document (Article of Incorporation, Trust Agreement, or Articles of Association, Constitution, Bylaws or Other Similar Organizing Documents
• Section 501(c)(3) Purpose and Dissolution Clause Verification (Included in Organizing Document)
• Form 2848, Authorized Representative Verification (if applicable)
• Form 8821, Tax Information Authorization

Your EIN is used to identify a business entity, and it’s also known as a Federal Tax Identification Number. You can apply for an EIN online through the IRS website, but they stress having your organization legally formed before doing so. The Organizing Document states what your organization is, and establishes the purpose and how your organization works. To make it simple, your organization should be fully established before filing for tax-exemption.

If you have a tax professional, or a lawyer, whom you would like to represent on behalf of your organization to the IRS, an Authorized Representative Verification form is needed. If not, then it isn’t necessary. The Tax Information Authorization form grants permission for any individual, corporation, firm, organization, or partnership of your choosing to receive and inspect confidential tax information about your organization; this form is required under any circumstances. If you don’t have the information to complete that part, you won’t even qualify to complete a Form 1023.

It pays to be prepared whether you’re applying for tax-exempt status, or going to visit family for Thanksgiving. With ExpressTaxExempt, you can use our unique, streamlined e-filing features to complete a Form 1023. Once you’ve successfully filled out the application, you can print out your completed form and mail it to the IRS.

Our support team is thankful to be able to provide you with any assistance in regard to filing for tax-exemption or e-filing any one of our supported forms for exempt organizations. Feel free to give us a call Monday through Friday from 9 a.m. to 6 p.m. at (704) 839-2321. You can also email us 24/7 at support@expresstaxexempt.com, or chat with us at www.expresstaxexempt.com.

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Nonprofit Showcase (A.Bevy, Incorporated)

Throughout the month of November, we have been sharing beneficial tips and advice for nonprofits and charities about holiday fundraising, and information regarding IRS compliance with tax-exempt return forms. With our #nonprofitnovember campaign, we also have been highlighting nonprofit organizations and charities that have been diligently serving their communities. And this week we are proud to showcase A.Bevy, Incorporated.

A.Bevy, Incorporated is a nonprofit organization, founded by Bryant Kirk White, with a focus on instruction through the arts, and the realization of self and individualism. Established in 2009, the organization’s vision has been placed upon “The Three Pillars,” CHANGE. PROGRESSION. GROWTH., which are the three keys towards living through one’s own distinctive purpose. A.Bevy became incorporated in 2012 with a mission “to assist individuals in finding their true passion, path, and purpose through creative introspective experiences.” As of 2014, A.Bevy, Incorporated is properly recognized as a section 501(c)(3) organization by the Internal Revenue Service.

Located in Laurens, South Carolina, A.Bevy, Incorporated hosts a number of fundraising events including banquets, tournaments, shows, festivals, forums, and workshops. The funds produced from these events are used to sponsor future events, but more importantly, to finance a variety of annual scholarships for South Carolina college students. Since its modest beginnings, A.Bevy, Incorporated has graciously grown into six collegiate sectors including Rock Hill’s very own Winthrop University.

Through educational events, media stimulating contemplative journeys towards self-purpose, and generous investments into the future minds of America, A.Bevy, Incorporated will continue to grow as a recognizable force throughout South Carolina and beyond. Thank you, A.Bevy, Incorporation - a shining example of #nonprofitnovember.

For more information about A.Bevy, Inc., you can check out the organization’s website for contact info. And if there are any other nonprofits or charities you would like to see showcased for #nonprofitnovember, let us know in the comment section below.

It doesn’t matter if your nonprofit is large or small, if it’s been around for years, or if you're just starting out. ExpressTaxExempt is your online solution for exempt organization e-filing. E-file tax-exempt return forms, extensions, and soon you can even apply for tax-exempt status with our section 501(c)(3) applications. Our live support team in Rock Hill, South Carolina can assist you with the e-filing process. Call us at (704) 839-2321; we’re available Monday through Friday from 9 a.m. to 6 p.m. EST. We also offer 24/7 email support through support@expresstaxexempt.com, and live chat at www.expresstaxexempt.com.

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27-Month Threshold

Time is always a factor in just about everything we do. You work for a number of hours throughout the day, you have a few hours for yourself or your family. You may have to be somewhere at a certain time, or you have to leave right at a certain hour. Things that have to get done, or activities that we would like to do, are often decided on how much time we have to do them. The same thing goes for taxes, or any federal forms for that matter. 

When filing for tax-exempt status, the IRS processes applications in the order they were received. But cases can be worked out of order sometimes. What’s important here is that how soon or late you apply for tax-exemption can determine when your organization actually receives its tax-exempt status.

So there’s this rule… this sort of 27-month rule that’s associated with section 501(c)(3) applications. Generally, your organization can be recognized as tax-exempt from the day it was officially formed. To receive that type of recognition date, you need to have your tax-exempt application filed, and accepted by the IRS, within 27 months after the end of the month your organization was formed.

Example: Your organization was officially formed on August 20, 2015. To get your exempt status to have to same date, your Form 1023 needs to be filed and accepted by the end of November 2017.

Now that’s a big chunk of time; it’s a little over two years. But don’t procrastinate. A lot can happen for a start-up organization within two years. You might not even decide to become tax-exempt until after a full year of operation.

“What happens if I file after 27 months?”

Nothing drastic or terrible will happen to your organization if you happen to file after 27 months. Your organization’s tax-exempt status will only be recognized after your actual filing date. However, there are exceptions depending on your organization filing late. For specific situations that mandate exception from the rule, contact your local tax professional or visit the IRS webpage.

Why wait a full two years when ExpressTaxExempt is your online solution to preparing your section 501(c)(3) application for tax exemption? Your information entered with ExpressTaxExempt is saved automatically, safely secured, and easily accessible at your leisure - anytime and anywhere. Our service also checks for any filing errors or mistakes so that your Form 1023 application can be complete and correct the first time around. Best of all, you can download and print your completed form as soon as you’re done.

Preparing your Form 1023 doesn’t have to be extremely hard. Our live team of expert professionals in Rock Hill, South Carolina are ready to help. Contact us by phone at (704) 839-2321; we’re available Monday through Friday from 9 a.m. to 6 p.m., Eastern Standard Time. You can also reach us by 24/7 email at support@expresstaxexempt.com, or by live chat at the ExpressTaxExempt website.

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Scare-Free Tax Season

They say it’s the most frightful time of year. No matter how hard you try, it’s impossible to avoid. And if things don’t go through as expected, you’re hit with probably the worst fear ever conceived by the human mind. No, we’re not talking about Halloween, but something most would consider even more sinister - Tax Season!! *cue lighting and thunderclap*

The thought of having to file tax forms could send a cold shiver down the spines of even the mightiest of men, or women. However, there’s no need for you to hold your breath like when walking past a cemetery at the stroke of midnight. As scary as filing taxes may be, you can conquer your tax filing fears with ExpressTaxExempt.

ExpressTaxExempt offers the quickest and simplest way to e-file your exempt organization tax return. We offer support for the following exempt tax forms:

• Form 990-N (e-Postcard) - For exempt organizations with less than $50,000 in gross receipts.
• Form 990-EZ - For exempt organizations with gross receipts over $50,000, but less than $200,000 and total assets less than $500,000.
• Form 990 (Long) - For exempt organizations with gross receipts equal to or greater than $200,000, and total assets equal to or greater than $500,000.
• Extension Form 8868 - An extension of time for exempt organizations; support is available for Part I and Part II.

And our newest service is so awesome, it’s like walking through a traditional, slasher horror film and coming out unscathed. With ExpressTaxExempt, you can now completely fill out a Form 1023 for tax-exempt recognition using the same highly-rated features including interview-style questioning, built-in error checking, accessibility with cloud computing, and, of course, our live, US-based technical support.

In a scary world full of ghouls, monsters, and taxes, let ExpressTaxExempt be that warm, comforting light that dispels the darkness. And while a scare-free Halloween may not be as welcoming as a scare-free tax season, the goal is to be well protected in both situations.

And just as there are many tips available on how to be safe on Halloween night, ExpressTaxExempt also offers a number of security protocols to keep your tax information secure. Our site is encrypted, McAfee secure certified, and protected by SSL (Secure Sockets Layer); your information goes strictly to the IRS and no one else.

Even the most enthusiastic Halloween fans go out with a group, and never alone; so don’t ever think that you have to face down these IRS tax-exempt forms by yourself. We have our live, US-based support teams located in Rock Hill, South Carolina that are more than happy to assist you. Give us a “howl” Monday through Friday at (704) 839-2321 from 9 a.m. to 6 p.m. We’re also available through email (support@expressextension.com) and live chat (www.expresstaxexempt.com).

ExpressTaxExempt wishes you all a safe and happy Halloween weekend!

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Section 501(c)(3) Applications

Even if you have a successful nonprofit operation going on within your community, you just can’t proclaim yourself as a tax-exempt organization. Like many other things leading to a classification or a title, there is a process that has to occur. Think about it… your nonprofit didn’t spring up overnight; it took a process and is probably still in progress. 

The success of your organization definitely is a process; one of the things you have to figure out is what works and what doesn’t work. To begin the process of becoming a tax-exempt organization, you have to complete and a file a section 501(c)(3) application.

A section 501(c)(3) application, also known as Form 1023, is required from organizations that are applying for exempt recognition from federal income tax. If your organization is approved, the IRS sends you written confirmation of your tax-exempt status, and its qualifications for tax-deductible, charitable contributions.

A Form 1023 is listed as the Application for Recognition of Exemption under Section 501(c)(3) of the Internal Revenue Code. You can obtain tax exemption by filing a Form 1023. Your organization must follow the two key requirements in order to be exempt from federal income tax.

Requirement #1
Your organization must be organized as a corporation, trust, or an unincorporated association with documents specifying your purpose, and assets that are permanently dedicated to exempt purposes.

Requirement #2
Your organization must operate to fulfill one or more exempt purposes that’s listed in its documents.

If you’re tax-exempt under section 501(c)(3), you’re normally recognized as a charitable organization. And your organization will be classified further as either a public charity or a private foundation.

Make the process of becoming tax-exempt as quick and easy as possible by preparing your section 501(c)(3) application with the all-new service from ExpressTaxExempt. Your exempt application is filled with our simple “Q&A” format, reviewed by our automated error checks, and you can access your information at any time with our convenient cloud computing.

Once your Form 1023 has been completed, you can download and print your application to mail to the IRS. ExpressTaxExempt even has you covered if you need further assistance. Our live, support experts are available to help Monday through Friday from 9 a.m. to 6 p.m. EST. Give us a call at (704) 839-2321, or send us an email to support@expresstaxexempt.com. You can even live chat with us at www.expresstaxexempt.com.

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Introducing ExpressTaxExempt

Your most reliable e-filing service for exempt organizations has just received an extensive makeover. The realm of tax-exempt filing will never be the same again as we are overly ecstatic to unveil a revision of one of the greatest e-filing services within the ExpressTaxZone family. It is with an enormous honor that we introduce ExpressTaxExempt!

ExpressTaxExempt retains all of the features and services that you have come to expect from Express990. You can still e-file your Form 990-N (e-Postcard), Form 990-EZ, Form 990 (Long), and Extension Form 8868 with the same velocity and ease as before. Everything you would ever need to stay in compliance with the IRS, and maintain your tax-exempt status, can be accessed with the all-new ExpressTaxExempt.

But why stop there?

We understand that many organizations are going through unnecessary hoops and hurdles, and are given the runaround when attempting to become tax-exempt. We also want to present a new, intuitive user interface that can streamline the process of organizations filing for tax-exempt status. That service has now arrived with ExpressTaxExempt.

As an all-inclusive feature of ExpressTaxExempt, we can now serve as your leading solution for preparing and submitting your Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code. With our service, you can directly download your completed Form 1023 and mail it to the IRS. Once your organization receives exemption status, why not remain within our family and e-file your yearly required tax-exempt returns as well? Everything you need can be found under the ExpressTaxExempt umbrella.

Among the proud rankings of our other products, ExpressTaxExempt also boasts the best in live, US-based technical and support teams. Located in Rock Hill, South Carolina, our expert professionals are ready to assist you with the best help available. We know the in’s and out’s of the e-filing process and offer the most comprehensive help in the industry.

Nothing has been taken away, only enhanced. We still offer our claim-to-fame features:

• Simple “Q&A” Formatting
• Cloud Computing
• Built-In Error Checks
• Worry-Free Security
• Mobility

With ExpressTaxExempt, you’re not just e-filing, you’re sharing an e-xperience.

Never e-file alone; we have a dedicated support team of live professionals ready to assist, or answer any questions you may have about e-filing with our services. Give us a call at (704) 839-2321; we’re available Monday through Friday from 9 a.m. to 6 p.m. EST. Send us an email at support@expresstaxexempt.com, or live chat with us at www.expresstaxexempt.com.

         

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Tax-Exempt Qualifications

We all may have ideas about an organization, a company, or even a nonprofit. And while you may have a rock-solid business plan, proper funding, and an amazing cause, that doesn’t necessarily mean your corporation will qualify for tax-exempt status.

Under the Code Section 501, the most common exemption is Section 501(c)(3). For your corporation to be eligible for tax-exempt status, your activities must be limited to legitimate tax-exempt purposes. These purposes can be considered as:

• Literary
• Scientific
• Religious
• Charitable
• Educational
• Public safety testing
• Promotion of the arts
• Prevention of cruelty to children or animals
• The supporting of national or international competitive sports for amateurs

With each of these tax-exempt purposes, there follows a core of legal meaning that explains what each category means. Based on the regulation of the Treasury, for instance, the word “charitable” can be defined as the:

• Growth of religion
• Advancement of social welfare
• Growth of education and science
• Reduction of governmental burden
• Aid of the poor, distressed, or underprivileged
• Construction or preservation of public buildings, monuments, or works

Each purpose is specifically explained as such; so if you have a new or original idea for your corporation, it’s best to double-check and make sure it can be categorized under at least one of the tax-exempt purposes.

Another qualification for tax-exempt status is that your organization must assist an adequately large and broad charitable class. As the saying goes, “charity ends where certainty begins,” which is why fundraising for a specific person, a tech company, or even donating all of your profits to a Section 501(c)(3) organization, doesn’t qualify your organization for tax-exempt status.

One more quick rule when qualifying for tax-exempt status is that it’s not about the proceeds, but what activities your organization is doing, and if those activities can be classified under any of the tax-exempt purposes.

For more information about gaining exemption status, check out the following blogs:

Non-Profit vs. Tax-Exempt Organizations

Becoming a Nonprofit or Tax-Exempt Organization

Once your organization becomes tax-exempt, you can preserve your status by e-filing your yearly, required tax returns with Express990. We support service for Form 990, Form 990-EZ, Form 990-N (e-Postcard), and Extension Form 8868. Failure to file for three consecutive years will result in the loss of your exemption status. We work closely with the IRS to provide you a safe and secure e-filing experience that will save you time and money.

For any assistance with e-filing our available 990 forms, you can contact our live professionals by phone (704-839-2321, Monday through Friday from 9 a.m. to 6 p.m., Eastern Standard Time), by email (support@expresstaxexempt.com), or by live chat (www.expresstaxexempt.com).

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Private Foundations

In the recent blog, “Public Charity Test,” we mentioned briefly how Private Foundations have more regulations than Public Charities along with paying a tax on investment income. But that was just a small tidbit about the differences between private foundations and public charities. All exempt organizations listed under section 501(c)(3) are considered private foundations until they can prove they qualify for public charity status.

What is a Private Foundation?
The main difference between a private foundation and a public charity is donor control, that’s it. If your organization operates as a private foundation, then you receive all of your funding from a single donor or a limited group of donors. These donors are usually just one person, a family, or a corporation, but not the general public.

Generally, private foundations have about four sub-categories:

• Traditional - This is your most common type of private foundation. It may be fully funded by an endowment, or receive funding annually by its donor. The main function of a traditional private foundation is typically to produce grants.
• Pass-Throughs or Conduits - These types of private foundations keep their donor’s contribution under lock for a short amount of time. The contribution from the donor, and any acquired income with it, is dispersed after the end the tax year in which the contribution was made - usually within two months.
• Operating - An operating, private foundation works like a public charity in which it has its own charitable activities such as a museum or library; however, that doesn’t make it a public charity - remember about donor control. The only difference with an operating, private foundation is that engages more in working programs than grants.
• Pooled Common Funds - Both the donor and donor’s spouse can annually choose the recipients of their funds. Generally, the recipients are public charities and even after the end of the donors’ lives, the funds still go to the charity that they have chosen.

Even if your organization has the word “foundation” in its name, that doesn’t mean that you operate as a foundation; it’s all about how you receive your donations. Usually, private foundations are privately created, funded, and managed by either a single person, a family, or a corporation.

Because of the donor control of private foundations, they do not rely on public donors for support; therefore, they are not under the same close, public examination as public charities are. One thing you can bet that private foundations and public charities have in common is both of their tax returns are due on the 15th day of the 5th month after the end of the tax period.

Select your organization status in Schedule A and complete the rest of your tax return form with Express990. We support Form 990, 990-EZ, and 990-N (e-Postcard), and we offer a safe, secure, and accurate e-filing process that will save you time and money.

For any assistance with e-filing our available 990 forms, you can contact our live professionals by phone (704-839-2321, Monday through Friday from 9am to 6pm, Eastern Standard Time), by email (support@expresstaxexempt.com), or by live chat (www.expresstaxexempt.com).

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Non-Profit vs. Tax-Exempt Organizations

In the realm of tax and legal jargon, there’s a phrase you probably heard as many times as we have here in the office, “Non-profits are tax-exempt organizations, but not all tax-exempt organizations are nonprofits.”

“Tuh-mey-toh, Tuh-mah-toh,” right? Both are so similar; yet, there are significant differences that justify their separate designation.

Non-Profits
Your organization being labeled as a non-profit or for-profit is a perception of state law. According to state law, a for-profit organization generates money specifically for its owners and investors. By having your organization recognized as a non-profit, you’re basically stating your organization has some other purpose other than creating revenue for owners and investors. But that purpose alone doesn’t necessarily qualify for an exemption from taxes.

Tax-Exempt Organizations
As mentioned before, labeling your organization as a non-profit doesn’t mean it’s automatically recognized as “tax-exempt.” Above all, you must apply to the IRS for a determination of a tax-exempt status. There are many types of organizations that are qualified for a number of tax exemptions; one would be like an exemption from tax on income that is received during the course of activities conducted in relation to your organization’s tax-exempt purpose.

A 501(c)(3) organization is your most common type.of tax-exempt organization. In order to qualify, you have to file a Form 1023, Application for Recognition of Exemption Under Section 501(c)(3), with the IRS. Your state may also require you to submit an application with them to qualify for exemption from state income tax and other state taxes.

For more information about non-profits and tax-exempt organizations, check out the following blog: Becoming a Non-profit or Tax-Exempt Organization

One thing you should remember is that both non-profits and tax-exempt organizations can make money. Just because you’re labeled as either “non-profit” or “tax-exempt” doesn’t mean that your organization can’t have any money left over at the end of the year. Any funds not needed to fulfill a current expense can be used to further your organization’s mission or be saved for future activities.

If your organization is tax-exempt, or a non-profit that’s recognized as “tax-exempt,” you can safely and securely e-file your tax-exempt return with Express990. We offer all three 990 forms for tax-exempt organizations. You can also download our FREE Express990 App for iOS and Android tablets, or use our mobile site to e-file a Form 990-N (e-Postcard).

For any questions or assistance with our e-filing services, feel free to contact our live, expert help at our headquarters in Rock Hill, South Carolina.

Phone: (704) 839-2321 (Monday - Friday, 9am - 6pm, Eastern Standard Time)
Email: support@expresstaxexempt.com
Live Chat: www.expresstaxexempt.com

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Becoming a Nonprofit or Tax-Exempt Organization

You provide a local service, and your service fulfills an existing need, it attracts support, and produces substantial results. You’ve thought about it and want to take your services to the next level. An inspiring route to give back to your community while serving others is to start a nonprofit or a tax-exempt organization. 

You need to understand that building and maintaining a nonprofit could potentially take years of effort and an even greater amount of determination. However, there are general steps you can take in your journey to become a nonprofit or a tax-exempt organization.

First Step: Educate Yourself

Do Some Research. You need to figure out if there are any other nonprofit organizations that are currently providing the same type of service in your community. It may prove harder to find support if you’re just copying existing services rather than improving or adding to them.

Be familiar with how a need isn’t being met within demographic or population data that shows a need for your services.

Is A Nonprofit the Correct Path? As a possible Public Charity, you must organize and operate exclusively for exempt purposes that are in place with section 501(c)(3) of the Internal Revenue Code.

Know and Consider the Alternatives. You may find that building a nonprofit a complicated way just to pursue your passion to serve your community. Developing and maintaining reliable income streams will most likely be your greatest challenge. Statistics show that less than half of new nonprofits make it over five years, and those who do make it, at least a third of them are in financial stress.

Don’t let that discourage you. Consider other possibilities that can still let you operate as a nonprofit with less effort and cost. With that, you can refocus on serving your community and developing experience and support.

Second Step: Build a Sturdy Foundation

Create a Mission Statement. Presenting your mission statement is a critical step. It tells your organization’s purpose, what types of people you serve, and how you serve them. Every move you make with your organization should be to support and progress your mission.

Draft a Business Plan. By having a business plan, you can efficiently describe, in detail, your organization’s intention for achieving its mission. A business plan can also be used to outline new projects or ventures.

Develop Your Board. Your board will perform a variety of roles and legal responsibilities. It will also change as your organization grows in order to carry out duties effectively. Your recruitment will be most important, but also systematic board development like orientation, training, evaluation, and the cultivation of board members are crucial to overall success.

Third Step: Incorporate Your Nonprofit

Reasons you should incorporate:

• Formal structure adds credibility to your programs and services
• Corporate structure limits the liability of your organization's officers and directors
• Documents, policies, and procedures associated with corporations are required by the IRS

Fourth Step: File for 501(c)(3) Tax-Exempt Status

Eventually, you’ll need to apply for tax-exempt status with the IRS. There is a registration fee that depends on your average annual gross receipts. The decision from the IRS could also take up to a year to receive based on the information from your application.

Fifth Step: Continuous Compliance

Register with Your State’s Agency. Your state agency manages charitable organizations and solicitations. If you plan to get contributions from other states, you would need to register again within those states. Registration requirements may vary from state to state.

File Your Required Federal Returns. To receive tax-exempt status, you should act like a tax-exempt organization from the day of your incorporation. That means filing a Form 990 even if you’re a start-up, even if you had a short tax year, even if you brought in no revenue at all. Forms break down like this:

• Form 990 (Long Form) - For tax-exempt organizations with gross receipts greater than or equal to $200,000 and total assets greater than or equal to $500,000.
• Form 990-EZ - For tax-exempt organizations with gross receipts less than $200,000 and total assets less than $500,000.
• Form 990-N (e-Postcard) - For tax-exempt organizations with gross receipts less than $50,000.

These returns are due on 15th day of the 5th month after your tax end date and, if you fail to file for three consecutive years, you’ll automatically lose your tax-exempt status.

Each guideline may vary with each state so it’s recommended that you consult with a tax professional for detailed assistance. Stay in compliance with the IRS by e-filing your tax-exempt return with Express990. We support all three 990 forms for tax-exempt organizations, and we offer a safe, secure, and accurate e-filing process that will save you time and money.

For any assistance with e-filing our available 990 forms, you can contact our live professionals by phone (704-839-2321, Monday through Friday from 9am to 6pm, Eastern Standard Time), by email (support@expresstaxexempt.com), or by live chat (www.expresstaxexempt.com).

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