starting nonprofit or charity

noreply@blogger.com (nonprofit) — Wed, 18 Apr 2007 08:45:00 -0700

Closing / Dissolving a Charity in State of Oregon

Oregon law requires written notification of an intention to dissolve every public benefit or religious nonprofit corporation at or before the time the corporation delivers articles of dissolution to the Secretary of State. The notification must include a detailed list of organizations or persons who will receive the nonprofit corporation's assets upon dissolution. The list must include names, addresses and amounts that are to be distributed to each beneficiary. You can provide the list on a letter or on a Closing Form.

Mail the letter or the form to: Charitable Activities Section, 1515 SW 5th Avenue, Suite 410, Portland, OR 97201.Public benefit corporations must distribute all assets to an organization organized for a public or charitable purpose, a religious corporation, the United States, a state, or a person who is recognized as exempt under section 501(c)(3) of the Internal Revenue Code of 1986.Please note that corporations organized in Oregon may not close their file with the Oregon Department of Justice until the corporation dissolves. Corporations which meet the registration requirements may not close their file regardless of whether the organization is currently active.
Private Foundation Rules

One restriction on private foundations is that they may not engage in certain "taxable expenditures." State law (ORS 65.036(5)) also prohibits these types of expenditures. The IRS identifies five types of taxable expenditures, further defined by regulations and procedures:
§4945(d)(1) Taxable expenditures include those spent to carry on propaganda, or otherwise attempt to influence legislation, including grass roots lobbying and direct lobbying by communicating to the general public.

§4945(d)(2) Taxable expenditures include those spent to influence the outcome of any specific public election, or to carry on a partisan voter registration drive (directly or indirectly).
§4945(d)(3) Taxable expenditures include grants to individuals unless the grants are conducted pursuant to a procedure that is approved in advance by the IRS. Even if grants are made on an objective basis, the pre-approved process must be followed.

§4945(d)(4) Taxable expenditures include grants to organizations which do not qualify for public charity status and for which the private foundation does not exercise "expenditure responsibility," including a pre-grant inquiry, written grant agreement, written report from grantee, and disclosing the grant on IRS form 990-PF.

§4945(d)(5) Taxable expenditures include funds spent for any purpose other than proper charitable purposes. Although education of the public is a proper purpose, "educational purposes" are defined by IRS Rev. Proc. 86-43, and may not include biased, distorted, unsupported, or inflammatory statements.

The strict prohibition on lobbying contained in IRC §4945(d)(1) and ORS 65.036(5) applies only to private foundations. While there is no similar prohibition for public charities, IRS rules do provide that "no substantial part" of the organization’s activities may be lobbying. A public charity has the opportunity to make an election by filing IRS form 5768, which helps identify the dollar limitations for the lobbying activity. Charities should contact their legal advisor to see if such an election is appropriate. Both types of §501(c)(3) organizations are prohibited from engaging in "political" expenditures, but this prohibition is limited to the support for or opposition to candidates for political office.

(courtesy state website)

http://www.ofundraiser.com

noreply@blogger.com (nonprofit) — Sat, 14 Apr 2007 20:23:00 -0700

Massachusetts - Advisory On Donations Of Cars To Charity

Donating a car is an excellent way to support a charitable organization while still reaping an economic benefit through a tax deduction. All donors should be aware that tax deductions for used automobiles, boats, or airplanes are available only to those individuals who donate to a qualified charity and who itemize deductions on their tax returns. Here are some tips to consider when deciding whether to donate your car to charity:

Do make sure that you are donating to an eligible organization. Tax deductions are available for donations made to §501(c)(3) organizations, public charities which the Internal Revenue Service has determined to be tax-exempt. To verify an organization’s qualified status, contact the Public Charities Division at (617) 727-2200, ext. 2101; the IRS Tax Exempt/Government Entities Customer Service at 1-877-829-5500; or look for IRS Publication 78 in your local library’s reference section or on the IRS website, www.irs.ustreas.gov. Churches, synagogues, temples, mosques, and governments are not required to register with the Public Charities Division or to apply to the IRS for tax-exempt determination. They may not be listed in Publication 78, but donations to these institutions are tax deductible.

Do ask the charity plenty of questions. Find out what the organization’s mission is and how your donation will help it. Ask if your donation can go to a particular program or service that interests you or whether it must go only into the charity’s general fund. Do not donate to an organization that avoids talking about its charitable purpose or refuses to send you information.

Do ask what the charity will do with your car. Some charities refurbish cars and give them to people in need. Some technical schools use cars in their auto shop programs. Other organizations simply resell the car or sell its parts and use the proceeds for their charitable purposes.

Do ask if the charity handles all aspects of your donation. Many charities contract with for-profit companies to handle all the details of motor vehicle donations. If this is the case, ask how the money from your car donation is split between your charity and the for-profit company.

Deduct only the amount allowed by law. Section 884 of the American Jobs Creation Act of 2004 added §§ 170(f)(12) and 6720 to the Internal Revenue Code and changed the rules for donations of motor vehicles, boats, and airplanes beginning in 2005. There are different rules concerning deductions, depending on the value of the car and on whether the charity will keep and use the car or whether it will sell the car (or its parts).

The IRS has published "A Donor's Guide to Vehicle Donations" (Publication 4303), which details the new rules. You can obtain Publication 4303 from the IRS at your local IRS office, or by calling 1-800-TAX-FORM (1-800-829-3676), or from the IRS website, www.irs.gov.

Do have your motor vehicle appraised by a qualified professional appraiser if it is worth more than $5,000.

Do make sure you have the title to your vehicle. A charity should not accept your donation without a title. To obtain a duplicate title, visit your local Registry of Motor Vehicles branch or visit the Registry’s website at www.mass.gov/rmv.

Do take responsibility for transferring the title at the time of the donation. On the back side of your title, you should assign the title to the charity, enter the correct mileage from the odometer, and sign and date the form. Be sure to make and keep a copy of both sides of your title. Do not assign your title to the towing company or the for-profit company that picks up or receives your car. An assignment of title should be made only to the charity.

Do maintain a personal record of your donation. Items that should be included in your record include
- the written contemporaneous acknowledgment from the charity
- the name and address of the organization to which you contributed
- the date and place where your vehicle was picked up
- a reasonably detailed description of the donated car or a photograph of the car
- the fair market value of the car at the time of the contribution and how that value was calculated
- a signed copy of the appraisal, if the motor vehicle was appraised
- any terms or conditions attached to the car donation
- how you obtained the car (by purchase, gift, inheritance, etc.) and the date
- a copy of your title, registration, and any receipts you are given by the tow company or the charity.

Do contact the Public Charities Division of the Attorney General’s Office at (617)727-2200, extension 2101, if you think that an organization is illegally posing as a charity or using deceptive advertising to solicit donations.

(courtesy state website)

noreply@blogger.com (nonprofit) — Sat, 7 Apr 2007 13:39:00 -0700

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A typical nonprofit organization or charity initiative has to take care of lots of different aspect and which involve different process. Also there is more competition for donor dollars and volunteers time. We understand the necessity to expose your initiatives to the large audience with the affordable cost so that your initiatives can stay ahead of the competition.

According to American Association of fundraising counsel, Americans give $234 billion to charity in 2002 and 241 billion in 2003. Also more billions of dollars are giving away to the charity by European countries and Australia every year.The online community is growing very fast, our subscriptions help you to build your own initiatives based portal to expose to wide array of audience around the globe. This subscription can help to unite voices, concerns, humanitarian initiatives, peace effort, environment conservation and many more activities to the local and world community.

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(Courtesy http://www.ofundraiser.com/ )

noreply@blogger.com (nonprofit) — Fri, 9 Mar 2007 08:15:00 -0800

New York Charities and non-profit organization's Frequently Asked Questions (FAQ)

Q: What are the different registration types for charitable and other non-profit organizations?

There are two statutes that require registration of charitable and non-profit organizations:• Article 7-A: Article 7-A of the Executive Law (Article 7-A) requires registration of charitable and other nonprofit organizations that solicit contributions from New York State (including residents, foundations, corporations, government agencies and other entities).• EPTL: Section 8-1.4 of the Estates, Powers and Trusts Law (EPTL) requires registration of charitable organizations that are incorporated, are formed or otherwise conduct activity in New York State.

Based on these two registration statutes, there are three registration types for charitable and other non-profit organizations registered with the Charities Bureau:• Article 7-A: Organizations registered pursuant to Article 7-A only and not registered under the EPTL.• EPTL: Organizations registered pursuant to the EPTL only and not registered under Article 7-A.• Dual:Organizations registered pursuant to both Article 7-A and the EPTL.

Q: How can I find out if an organization is already registered?

You can find out if an organization is registered by using the Charities Bureau Registry Search. To find an organization, you can search by organization name, registration number or federal Employer Identification Number (EIN), or a combination of these search criteria.

Q: What form does a charitable or other non-profit organization need to fill out in order to register?

An unregistered charitable or other non-profit organization that is required to register with the Charities Bureau for the first time must submit Form CHAR410 (Registration Statement for Charitable Organizations). CHAR410i contains instructions on filling out the Form CHAR410 .

Q: When and how can an organization amend its registration?

In order to amend a registration, Form CHAR410-A (Amended Registration Statement for Charitable Organizations) must be submitted to the Charities Bureau. Form CHAR410-A is only for organizations already registered with the Charities Bureau that have amended their information (for example, the organization's name, contact information or list of directors) or document attachments (for example, the certificate of incorporation or by-laws) since the last CHAR410 Series form was filed. Registered organizations are required to notify the Charities Bureau within 30 days of such changes. If such changes are indicated in the organization's most recently filed Form CHAR500 (Annual Filing for Charitable Organizations), your organization need not file an amended registration statement. CHAR410i contains instructions on filling out the Form CHAR410-A.

Q: Who needs to fill out a re-registration statement?

Form CHAR410-R (Re-Registration Statement for Charitable Organizations) is only for organizations whose registration to solicit contributions has been cancelled as the result of a violation of Article 7-A registration or reporting requirements. In most cases, the organization will receive a notification from the Charities Bureau notifying them of an annual filing delinquency and requiring submission of re-registration statement. CHAR410i contains instructions on filling out the Form CHAR410-R .

Q: Are any organizations exempt from registering?

How can my organization request an exemption?Certain organizations are exempt from registering. Unregistered organizations that are exempt from registration are not required to submit an exemption request to the Charities Bureau. However, if you believe your organization is exempt from registration under Article 7-A or the EPTL or both and would like confirmation of such exemption, complete the Form CHAR410 (Registration Statement for Charitable Organizations), check "Yes" in Part E (Request for Registration Exemption) and attach Schedule E (Request for Registration Exemption for Charitable Organizations) with all required attachments listed in Schedule E next to the exemption claim(s) you select. A complete list of exemption reasons can be found in Schedule E.

If your organization is already registered with the Charities Bureau but you believe your organization is exempt from registration under Article 7-A or the EPTL or both, you must claim an exemption by completing the Form CHAR410-A (Amended Registration Statement for Charitable Organizations), checking "Yes" in Part E (Request for Registration Exemption) and attaching Schedule E with all required attachments listed in the schedule next to the exemption claim(s) you select.

Q: My organization doesn't operate in New York. Isn't it exempt?

There are two New York State laws governing charitable and other non-profit organizations - the Estates, Powers and Trusts Law ("EPTL") and Article 7-A of the Executive Law ("Article 7-A"). Subject to the specific exemptions listed in Schedule E (Request for Registration Exemption for Charitable Organizations), the EPTL requires registration for all organizations holding or administering charitable assets or otherwise doing business in New York State.

Article 7-A governs the solicitation of contribution from New York-based individuals, corporations, foundations and institutions. Subject to the specific exemptions listed in Schedule E (Request for Registration Exemption for Charitable Organizations), Article 7-A requires registration for all organizations that solicit contributions, whether or not the organizations are based in New York State or otherwise conduct business in New York State.Charitable organizations may be required to register and file annual reports pursuant to both laws.

Q: What forms and fees does an organization need to file each year?

Registered charitable or other non-profit organizations are required to submit an annual filing to the Charities Bureau every year, even if your organization is below the financial thresholds for submitting an annual financial report. You must file Form CHAR500 (Annual Filing for Charitable Organizations). Depending on the organization's finances during the year, you may be required to submit a filing fee and attachments, such as an IRS Form 990, 990-PF or 990-EZ and an accountant's audit or review. To learn how to complete Form CHAR500 and what fees and attachments are required, see the Instructions for the CHAR500.

Q: When are annual filings due?

Filing due dates depend on an organization's registration type. Article 7-A and Dual registrants are required to file within 4.5 months after the end of their fiscal year. EPTL registrants are required to file within 6 months after the end of their fiscal year.

Q: How can an organization request an annual filing extension?

In order to request a three month extension of time to file an annual filing, an email can be sent to: charities.extensions@oag.state.ny.usEmail requests for extensions must contain the name of the organization, its Charities Bureau registration number and its Federal Employer Identification Number (EIN) in the subject line. The body of the email must contain a request for an extension, including the reasons for the request.Further extension requests must be submitted in writing. For complete instructions on requesting an extension, please see this notice.

Q: What information on organizations is available to the public?

In general, all registrations and annual filings submitted to the Charities Bureau are open for public inspection pursuant to the New York Freedom of Information Law ("FOIL"), subject to the exceptions described below. The Charities Bureau's website contains links to the private website of ERI, Economic Research Institute. ERI's site displays Forms 990, 990-EZ and 990-PF submitted to the IRS by organizations required to file those forms with the IRS. The IRS makes those forms publicly available and provides them to ERI under the United States Freedom of Information Act ("FOIA ").

Q: Is any information in the annual filing exempt from disclosure to the public?

Information contained in the CHAR500 annual filing form and its attachments, including the IRS Form 990, 990-EZ or 990-PF with schedules, is open to public inspection pursuant to the FOIL unless otherwise stated below.The only parts of the annual filing exempt from FOIL disclosure to the public are:• Schedule B (Schedule of Contributors) to the IRS Form 990 or 990-EZ, which is also exempt from disclosure by the IRS pursuant to FOIA. (Note: Schedule B to the IRS Form 990-PF is not exempt from FOIL or FOIA disclosure.)• IRS Form 990-T (Exempt Organization Business Income Tax Return), which is also exempt from FOIA disclosure.

Q: Is the preparer's social security number exempt from disclosure to the public?

If included, the Preparer's Social Security Number on the signature block of the IRS 990, 990-EZ or 990-PF is not exempt from FOIL or FOIA disclosure. However, pursuant to the IRS instructions to such forms, the Preparer's Social Security Number is not required on the 990, 990-EZ or 990-PF for most tax-exempt organizations:

Instructions to the IRS Forms 990 and 990-EZ:"Enter the preparer's social security number (SSN), preparer tax identification number (PTIN), or employer identification number (EIN), only if the Form 990, or Form 990-EZ, is for a section 4947(a)(1) nonexempt charitable trust that is not filing Form 1041."Instructions to the IRS Form 990-PF:"If the box for question 13 of Part VII-A is checked (section 4947(a)(1) nonexempt charitable trust filing Form 990-PF instead of Form 1041), the paid preparer must also enter his or her social security number or, if applicable, PTIN and employer identification number in the spaces provided. Otherwise, do not enter the preparer's social security or employer identification number."

The Instructions for Form 990 and Form 990-EZ, Part W (Requirements for a Properly Completed Form 990 or Form 990-EZ), are available on the IRS website at the following web address:http://www.irs.gov/instructions/i990-ez/ar02.htmlThe Instructions for Form 990-PF, Part Q (Public Inspection Requirements, Requirements Placed on the IRS) and the Signature section are available on the IRS website at the following web addresses, respectively:http://www.irs.gov/instructions/i990pf/ch01.html http://www.irs.gov/instructions/

i990pf/ch02.html Please contact the IRS at 1-877-829-5500 if you have questions about the 990 forms or IRS public disclosure policies.

Q: What is an NTEE code?

National Taxonomy of Exempt Entities (NTEE) codes are used to classify non-profit organizations recognized as tax exempt under the Internal Revenue Code. The NTEE code provides a standardized language for describing the vast range of non-profit organizations. They can be used to define and collect statistics, analyze trends and extract practical information for donors and grantmakers. Detailed information on NTEE codes is available on the website of the National Center for Charitable Statistics.

(Based on NY state charity information provided by office of Attorney General)

noreply@blogger.com (nonprofit) — Tue, 6 Mar 2007 08:56:00 -0800

New Jersey Charitable organization FAQ

Who must register?
Any organization that has been granted a 501(c)(3) tax exempt status by the IRS;

Charities that are based in New Jersey; Those charities that solicit New Jersey residents for a charitable cause, or any cause that a prospective donor perceives to be charitable; and Any fundraiser receiving compensation to conduct fundraising on behalf of a charity or who acts as fundraising counsel to a charity. In addition, copies of contracts between the charity and the fundraiser must also be filed with the Charitable Registration Section.

Is anyone exempt?

Only religious organizations and schools that file their curricula with the Department of Education are exempt from the provisions of the Charitable Registration and Investigation Act.

When is a charity's renewal registration due?

Six months after an organization's fiscal year ends.

Other registration facts.
Registration renewals are required annually within six months of the end of the charity's fiscal year.

There are two different levels of registration filings:

Short form filers receive less than $25,000 in contributions from the public.
Long form filers receive more than $25,000 in contributions from the public.

There may be filing fees associated with the annual filings: Based on contributions reported there are five tiers of fees:

Short form filers that raise $0-10,000 = no fee
Short form filers that raise $10,001-$25,000 = $30 fee
Long form filers that raise less than $100,000 = $60 fee
Long form filers that raise between $100,000-$500,000 = $150 fee
Long form filers that raise over $500,000 = $250 fee

(For more more and uptodate information please contact state office)

noreply@blogger.com (nonprofit) — Tue, 6 Mar 2007 00:29:00 -0800

Oscar winning In Inconvenient Truth by Al Gore should be free and downloadable

An Inconvenient Truth - should be free for world community and downloadble for everyone. Please sign the petition to Mr. Al Gore to make this movie downloadable.

http://www.gliteracy.org/ and press petition

noreply@blogger.com (nonprofit) — Mon, 5 Mar 2007 08:31:00 -0800

Pennsylvania charities - Exclusions or Exemptions

TYPE OF ORGANIZATION	CRITERIA WHICH MUST BE MET FOR EXCLUSION OR EXEMPTION
Organizations of law enforcement personnel, firefighters, or other persons who protect the public safety.	Stated purpose in solicitations must not include any benefit to any person outside the actual active membership of the organization.
Religious institutions and separate groups or corporations which form integral parts of religious institutions.	1) Organization must be tax-exempt under the Internal Revenue Code; *and* *2) No part of the organization's net income can inure to the direct benefit of any individual; and* 3) The organization's conduct must be primarily supported by government grants or contracts, funds solicited from its own membership, congregation, or previous donors, and fees charged for services rendered.
Educational institutions and any auxiliary associations, foundations, and support groups which are directly responsible to educational institutions.	Curricula must be registered with, or approved by, the Department of Education, either directly or by acceptance of accreditation by an accrediting body recognized by the Department of Education.
Hospitals and hospital foundations.	Organization must be regulated by the Department of Health or the Department of Public Welfare.
Veterans' organizations, volunteer firemen, ambulance associations, rescue squad associations, and their auxiliaries or affiliates.	All fundraising activities of the organization or association must be carried on by volunteers, members, or an auxiliary or affiliate thereof, who receive no compensation, directly or indirectly, for the fundraising activities.
Public nonprofit library organizations.	Organization must receive financial aid from state and municipal governments and file an annual fiscal report with the State Library System.
Senior citizen centers and nursing homes.	Organization must be nonprofit and charitable *and* must have been granted tax-exempt status under the Internal Revenue Code *and* all fundraising activities must be carried on by volunteers, members, or officers, who receive no compensation, directly or indirectly, for the fundraising activities.
Parent/teacher associations or organizations.	Organization must be recognized in a notarized letter from the school district in which it is located.
Any corporation established by an act of Congress of the United States.	Corporation must be required by Federal law to submit annual reports of its activities to Congress containing itemized accounts of all receipts and expenditures after being fully audited by the Department of Defense.
Any charitable organization which receives gross *national* contributions of $25,000 or less annually.	Organization cannot compensate any person who conducts solicitations.

Have Fun • Do Good: 5 Tips to Start a Nonprofit Blog

noreply@blogger.com (nonprofit) — Tue, 27 Feb 2007 08:05:00 -0800

Have Fun • Do Good: 5 Tips to Start a Nonprofit Blog

noreply@blogger.com (nonprofit) — Thu, 1 Feb 2007 14:11:00 -0800

Washing DC - Nonprofit Planning (Courtesy state site)

To successfully establish a new nonprofit organization, many factors must be considered. What is its mission? What type of organizational structure and classification will best suit its purpose? What are the steps to develop an effective strategic plan? Where will the organization find funding? What licenses, permits, and registrations does the District government require?

Establish Your Organization: Find the initial steps required for establishing a nonprofit organization in the District.

Fulfill Tax and License Requirements: View local and federal requirements for operating as a nonprofit in DC.

Grow and Maintain: Your NonprofitFind resources for funding your nonprofit as well as other important maintenance tasks.

[Referenced from http://www.brc.dc.gov/]

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noreply@blogger.com (nonprofit) — Wed, 31 Jan 2007 09:10:00 -0800

Virginia - Charity and Nonprofit Online FAQs (courtisy state site)

Who is eligible to use Nonprofit Online?
Any nonprofit organization with access to the Internet desiring to apply for a Virginia sales and use tax exemption or to renew an expiring or expired exemption is eligible to use Nonprofit Online. Organizations must create a user-id and password if registering for the first time. If you are renewing an exemption, you must use the user-id and password created when your account was registered. If you have forgotten your user-id or password select the "Forgot Your Password" option and your user-id and password will be mailed to you, provided we have a valid email address for you.

What services are included in Nonprofit Online?
Nonprofit Online Users can apply for an exemption or renew their expiring or expired exemption online. You can also update your address and contact person by accessing the application using your user-id and password. If you need additional copies of your exemption certificate, you may download copies without having to contact the department.

What information do I need to use Nonprofit Online?
For security purposes, each new application will require the creation of a user-id and password to establish an account. If renewing your current exemption, enter the user-id and password created at the time your account was established. If you have forgotten your user-id and password, select the "Transfer of Ownership" option under "Services Available" on the Welcome Page. The following information is also required:

Federal Identification Number (FEIN)
Proof of compliance with Chapter 5 of Title 57 of the Code of Virginia An estimate of the organization's annual gross revenue, fundraising and administrative expenses Financial audit maybe required Federal Form 990 or 990EZ, if required by the Internal Revenue Service (IRS) Proof of Federal Designation 501(c)(3) or (c)(4) Estimate of total tangible personal property purchased in Virginia

Why should I sign up?
Nonprofit Online is a quick, efficient and secure way for an organization to apply for a new exemption or to renew their expiring or expired exemption online. You may also download a copy of your certificate and print extra copies when needed without having to contact the department. In addition, you may access Nonprofit Online to edit certain registration information as it changes or send a secure e-mail message to TAX through Nonprofit Online.

Can I receive an exemption from collecting the sales tax on items sold by my organization?
Any nonprofit organizations granted an exemption by the Department from paying sales and use tax shall be exempt from collecting sales tax if (i) the organization is within the same class of an organization exempt from collecting sales and use tax on June 30, 2003, or (ii) the entity is organized exclusively to foster and sponsor, and promote physical education, athletic programs, and contest for youths in the Commonwealth.

Can I apply under this process if I am a political subdivision of the Commonwealth or the United States?
No, you should not apply under this process. The Virginia Retail Sales and Use Tax Act provides that the Virginia sales and use tax shall not apply to tangible personal property for use or consumption by this State, any political subdivision of this State, or the United States. To make exempt purchases on behalf of the government entity, you may click on the following link to download Form ST-12, Sales and Use Tax Certificate of Exemption. Go to Nonprofit Online Go to Additional information about sales and use tax exemption for Nonprofit Organizations

[Referenced from http://www.tax.virginia.gov/]

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noreply@blogger.com (nonprofit) — Thu, 25 Jan 2007 14:28:00 -0800

Virginia - Nonprofit Online ( Courtesy Virginia State website)

Who is eligible to use Nonprofit Online?Any nonprofit organization with access to the Internet desiring to apply for a Virginia sales and use tax exemption is eligible to use Nonprofit Online. Users will be required to create a user ID and password in order to register an organization for a Sales & Use Tax Certificate of Exemption.

What Services are included in Nonprofit Online?
• Apply for a Sales & Use Tax Certificate of Exemption.
• Send your questions to a TAX Representative and receive a response in a secure environment.
• Print a copy of the Exemption Certificate.

What information do I need to use Nonprofit Online?For security purposes, each application will require the creation of a user name and password.

Additional information required includes:
• Federal Identification Number (FEIN)
• Proof of compliance with Chapter 5 of Title 57 of the Code of Virginia
• Organization's annual gross revenue, fundraising and administrative expenses
• Financial Audit maybe required
• Federal form 990 or 990EZ, if required by the Internal Revenue Service (IRS)
• Federal nonprofit designation 501(c)(3) or (c)(4)
• Estimate of total purchases of tangible personal property

Why Should I sign up?
Nonprofit Online is a quick, efficient and secure way for organizations to apply for and print out a Virginia sales and use tax exemption certificate. In addition, organizations will be able to edit certain information as it changes and reprint lost certificates, should they become lost, without having to contact the Department of Taxation.

[Referenced from https://www.npo.tax.virginia.gov/]

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noreply@blogger.com (nonprofit) — Sat, 6 Jan 2007 14:12:00 -0800

How to start a Charity/ Non-Profit Organization in Maryland (Courtesy Maryland State website)

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In an attempt to provide information to individuals desiring to start a non-profit organization in Maryland, the Charitable Organizations Division of the Office of the Secretary of State has prepared this information sheet on the necessary steps to form a non-profit organization. While every attempt has been made to ensure the accuracy of the information, please be advised that specific questions and information should be directed to the appropriate agency. Federal

Income Tax Exemption

Most charitable organizations are classified by the Internal Revenue Service as tax-exempt organizations. The benefit of obtaining the tax-exempt status is that the organization is not liable for any federal income tax. Applications for this status are made to the Internal Revenue Service. If tax-exempt status is granted, the organization will receive a tax determination letter. It is usually during this process that your organization will be designated an employee identification number or federal identification number. (Please note that these terms are used interchangeably.) This number is also required for many of the exemptions described below.

Being a tax-exempt entity does not automatically make donations to your organization tax deductible for the donor. Since most charitable organizations are considered section 501(c)(3) organizations, donations to these charities are generally tax deductible for the donor. Your organization's tax determination letter will state whether contributions to your organization are considered tax deductible

To obtain the necessary forms to apply for tax exemption, please contact the Internal Revenue Service by calling (toll free) 1-877-829-5500, using the IRS fax system at 703-368-9694, or downloading the forms from the IRS's website. The required forms are:

Form SS-4: Application for Employer Identification Number; Form 8718: User Fee for Exempt Organization Determination Letter Request; and Either: Form 1023: Application for Recognition of Exemption for 501(c)(3) Organizations; or Form 1024: Application for Recognition of Exemption for all other exempt statuses. To access these forms via the fax system, you must dial directly from your fax machine. Although Forms 1023 and 1024 are not accessible via the fax line, the catalog numbers for Form SS-4 and Form 8718 are 16055 and 64728, respectively.
State Income Tax Exemption Upon receiving an IRS tax determination letter stating that your organization is exempt from federal income taxes, your organization may also apply for an exemption from state income taxes. The Comptroller of the Treasury is the state agency responsible for acknowledging an exemption from Maryland income tax.

To apply for a state income tax exemption, your organization should submit to the Legal Department of the Revenue Administration Division the following information:

Request for exemption from Maryland income tax; An explanation of the nature, purpose, and scope of your organization; A copy of the IRS tax determination letter; A copy of your organization's by-laws; and A copy of the latest financial statement of your organization. When the request for an exemption has been granted, no income tax returns need to be filed with the Comptroller unless your organization files an IRS Form 990-T. (The Form 990-T is required if your organization has unrelated business income.)

The request for a state income tax exemption and the supporting documentation should be forwarded to the Comptroller of the Treasury, Revenue Administration Division, 110 Carroll Street, Annapolis MD 21411 and to the attention of the Legal Department. The telephone numbers of the Revenue Administration Division are 1-800-MDTAXES (638-2937) and 410-974-3981

Formal Structure of a Tax Exempt Entity

Before the Internal Revenue Service can issue your organization tax-exempt status, your organization must be formed as either an association, corporation, or trust. A copy of the organizing document (i.e., articles of incorporation approved and dated by appropriate state official, constitution or articles of association, or signed and dated trust instrument) must be filed with the IRS's Application for Recognition of Exemption.

In Maryland, corporate charter information is filed with the State Department of Assessments and Taxation. To assist non-profit organizations, the agency has prepared a guideline for articles of incorporation for non-profit organizations which can be obtained by contacting the agency. The agency's address is 301 West Preston Street, Baltimore MD 21201, and its telephone number is 410-767-1340. Forms and information can be obtained from the agency's web site.

Registration with the Office of the Secretary of State as a Charitable Organization

Organizations soliciting charitable contributions in Maryland are generally required to register with the Office of the Secretary of State as a charitable organization. Registration is required before soliciting in Maryland begins and continues on an annual basis.

If your newly formed organization will be soliciting Maryland residents for charitable contributions (either monetary or in-kind donations), your organization will probably be required to register with the Charitable Organizations Division. In most cases, the Exempt Organization Fund-Raising Notice will be the appropriate registration form for new organizations. This notice is required for organizations raising less than $25,000 in charitable contributions a year. You should also note that if your organization intends on raising funds in other states, you may also be required to register in the other states
Registration forms may be obtained in the following ways:

You may contact By mail : Charitable Organizations DivisionOffice of the Secretary of StateState HouseAnnapolis MD 21401 By Telephone:410-974-5534 or1-800-825-4510 (within Maryland) By E-mail:

Property Tax Exemption

Certain charitable, fraternal, educational, and religious organizations may be eligible for an exemption from state property tax. Once the property tax exemption is granted, the exempt status continues until it is revoked. State law, however, grants the State Department of Assessments and Taxation the authority to conduct periodic reviews of the granted exemptions to ensure continued compliance with the requirements.

While the tax-exempt status issued by the IRS is required to process the exemption application, the status granted by the IRS does not automatically guarantee that the organization's property will be exempt. Based upon the type of organization, there are different standards used to review a property tax exemption

To receive an exemption application form or information about the exemption, please contact the State Department of Assessments and Taxation office for the county in which the property is located. You may find a list of SDAT local offices, additional information, and copies of the required forms on SDAT's web site

Sales and Use Tax Exemption

Non-profit charitable, educational or religious organizations, volunteer fire or ambulance companies or volunteer rescue squads may also be eligible for sales and use tax exemptions. In Maryland, the Comptroller of the Treasury is responsible for granting this five-year renewable exemption. In order to be granted an exemption, your organization must have received a determination letter from the Internal Revenue Service stating that your organization is exempt under section 501(c)(3) of the Internal Revenue Code

The applicable form can be obtained by contacting the Comptroller at 410-767-1313, using the office's fax line at 410-974-FAXX (3299), or downloading the form from the Comptroller's website. The form needed to apply for an exemption from sales and use taxes is Form 2001, the Combined Registration Application. The fax system will enable you to select Form 2001 from Index 1

You can access the fax system by calling the number on the telephone handset of the fax machine, and the requested form will be forwarded to you immediately. If the fax machine does not have a handset, call from a touch-tone telephone and the requested documents will be sent to fax machine you designate

If you have any questions concerning sales and use tax exemption, please contact the Comptroller of the Treasury at Goldstein Treasury Building, 110 Carroll Street, Annapolis MD 21404-0466 or at 410-767-1318. Forms are also available at the Baltimore branch office located 301 West Preston Street, Room 206, Baltimore MD 21201-2384

[ State website http://www.sos.state.md.us/Charity/Non-Profit.htm]

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noreply@blogger.com (nonprofit) — Tue, 12 Dec 2006 03:32:00 -0800

I found this is very helpful the way wikihow layout for a startup charity.

How to Start a Charity
While starting a charity may seem like a daunting task, anyone with dedication, patience, and the ability to follow directions can successfully incorporate a charitable organization. There are federal, state and local requirements for starting a charitable organization, and there are multiple organizational structures to choose from, so make sure to do your research and check with all appropriate authorities. If you follow the steps below you will be able to create your own charitable organization with less hassle than you might think.

Steps
Think about what kind of charity you want to start. If you want to start a non-profit organization as identified by Section 501(c)(3) of the Internal Revenue Code, your organization’s activities will have to be charitable and will have to fall under certain categories. The most common categories are community benefit, religious, scientific, and educational.
Decide if a 501(c)(3) non-profit organization is best suited to serve your charitable goals. In addition to non-profit organizations, there are also charitable trusts. Trusts differ from non-profits in that they are centered more on the allocation of money than on the allocation of community services.
Define your mission. What is your organization going to do? What service will it provide your community? Once you’ve figured out your mission, write it out in a formal mission statement. It may seem silly to write a mission statement, but it’s absolutely necessary, and it’s very important—a good mission statement succintly communicates to others—volunteers, community members, and potential funders-- what you do or what you hope to do. The mission statement should be short (1-5 sentences, ideally), clear, and free of jargon. If you’re having trouble writing, visit established organizations’ web sites and study their mission statements.
Create Articles of Incorporation for your charity. Articles of Incorporation lay out the foundations of your organization. You can find sample Articles on the internet. Articles of Incorporation state the purpose, name, duration of operation, type, structure, and other basics of your organization. Most states have forms online that you can fill out. Be aware that some states require at least two signatures on Articles of Incorporation.
Write the bylaws for your organization. Template bylaws can be found online. Bylaws are the rules that govern your charity. A set of bylaws will define how decisions are made, who makes the decisions, what type of governing structure will direct the charity, how the organization will be set up, and how conflicts will be resolved.
File an application packet for a non-profit organization with your state Secretary of State. A non-profit charity is considered a corporation, so generally application paperwork is directed to the corporations division of the Secretary of State. There is usually a small fee associated with filing.
Get a Federal Employer Identification Number (EIN). The EIN is the number the IRS uses to identify your organization for tax purposes. You’ll need the EIN on just about every form you fill out from now on, including IRS paperwork and grant submissions. You can call the IRS at (800) 829-4933 to get an EIN assigned immediately, or you can apply online, by mail, or by fax.
File with the Internal Revenue Service for recognition as a charitable organization. There are charitable organization application packets available online (see external links below). The IRS reviews applications for recognition as a charitable organization on an ongoing basis, so you can apply for charitable status at any time. The packet will ask you to submit information on what your organization will do, who it will benefit, how it will administered, and who it will serve. It is important to note that you must first complete your Articles of Incorporation and your Bylaws, and the get accepted by the Secretary of State prior to applying for federal charitable status.
Set up a board of directors and a registered agent. The board of directors will help guide the charity and will make decisions. The registered agent is a person that resides in the state of incorporation—he or she is responsible for receiving official communications from the state.
Start becoming active in your community. Advertise what you are doing, who is going to benefit, and how you are going to go about doing it. Try to get involved in partnerships with other charitable organizations. Even a small role on a larger project can build credibility and recognition for your fledgling organization.
Write grants, raise funds, create programs, hold events, bring people together, solve problems, and generally make the community, state, or world you live in a better place! Good luck!

Tips
Starting a charity requires a lot of paperwork in the beginning. Luckily, the questions are not that complicated, and if you know what your mission is you will have no problem explaining to the governing agencies why you deserve charitable status.
Ask for help from other chartable organizations completing similar work. Some may even offer their organization as an umbrella to you until you receive charitable status.
Take the time to researh what others put into their Articles of Incorporation and their Bylaws. By defining early on your organization’s purpose, how it will be governed, and how decisions will be made you will avoid many potential problems.
Utilize the expertise and guidance of both the Secretary of State and the Internal Revenue Service. Even though the IRS may seem intimidating, the staff serving charitable organizations is both professional and helpful.
Don’t be afraid to ask questions or to make mistakes. Remember, you are trying to make your community a better place. People will be willing to help you, and those with specific knowledge are eager to help new organizations better serve the needs of a community.

Warnings
Like any business, a charitable organization takes a lot of work, some luck, and lots of sweat equity. Don’t get discouraged if your charity doesn’t immediately raise a million dollars. It takes time, business skills, and interest from stakeholders in the community to make your charity a success. Focus your energies on what people need or what will improve the world we live in, and demand for your services will increase.
Keep good records. You'll need to have all your paperwork in order from the very first day you incorporate, and there will be a lot of paperwork. If you don't have your receipts readily available, for example, and the IRS wants to review your non-profit status, you're in trouble.

Things You'll Need
Articles of Incorporation
A name for your charity
Bylaws
Filing form for Secretary of State
IRS 501(c)(3) packet
Federal EIN (Employer Identification Number)
Filing Fees
A need for your services in the community
Determination

noreply@blogger.com (nonprofit) — Wed, 17 May 2006 21:57:00 -0700

Nonprofit or Charity – Thinking about registering or running as standalone.

A nonprofit/charity entity has a mission that benefits the "greater good" of the local and global community, society, or the world. It does not pay taxes, but it also cannot use its funds for anything other than the mission for which it was formed. But in the contrary when you start a business, it is for the financial benefit of its owners and/or shareholders. Profit is the goal and the business pays taxes on that profit.

A nonprofit /charity organization can and do make a profit, but it must be used solely for the operation of the organization or, in the case of a foundation, granted to other nonprofit organizations.

IRS registered organizations can take advantage of tax-exempt nonprofit/charity status but "charitable" organization can be operate with non-exempt. So many groups serve the public but are not registered with the IRS as a nonprofit. Some "charitable" organizations do register with the state in which they reside and incorporate in that state as nonprofit corporations.

We came across so many small "charitable" organizations never seek recognition as a nonprofit from their state or the federal government. The drawback is not becoming a registered nonprofit is that donors cannot take a tax deduction on their donations, and you cannot receive grants from foundations or corporations.

To become a tax-exempt, IRS registered nonprofit, you must first incorporate (usually in your state) as a nonprofit corporation. Only nonprofit corporations can apply for federal tax-exempt status.

Above scenario based on our findings and analysis of US states but same rule works for the most of the countries but we would recommend making an effort to get to now more specific to your countries.