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When starting your nonprofit organization, the paperwork can be overwhelming.
JS Crockett Consulting makes the process easy by providing (14) free step-by-step videos with instructions on how to complete the entire process.
These videos include mission statement development, articles development, bylaws development, state paperwork, and federal paperwork.
Although the videos are created based on the process for the State of California, the videos shed light on the overall process and can be helpful for those completing the process outside of California.
Downloadable forms accompany the videos and are available for purchase at $15.00.
To check out these free videos go to: www.jamilacrockett.com/free-nonprofit-start-up-video-series.html
Update: April 21, 2014
The IRS has revamped the way that they are processing applications. Check out: http://www.irs.gov/Charities-&-Non-Profits/Charitable-Organizations/Where's-My-Application for details. While you are waiting for your 501 c 3 status, we have a few suggestions on ways to take action. Check out our video here: http://www.jamilacrockett.com/1/post/2014/04/what-to-do-while-you-wait-for-501-c-3-status.html
Here is a partial reprint taken from the Internal Revenue Service website (click on the link above for the entire message):
"Sometimes, representatives of exempt organizations and practitioners question why certain applications for tax exemption are processed faster than others. Not all applications are the same. While many are complete when received and the IRS does not need more information to process them, others may be incomplete or involve complex issues that require further development. This web page describes the application process and provides information on how to determine the status of an application.
EO Determination Application Process: After you submit your application, we will send you a notice within about 14 days acknowledging receipt. Exemption applications accompanied by the required user fee are separated into three groups:
If your application falls within the third group, you will be contacted once the application is assigned to an EO agent for further development."
Update: February 11, 2013
This original blog posted on August 1, 2012. Since the post, the IRS has substantially decreased the waiting time. Although on the website (http://www.irs.gov/Charities-&-Non-Profits/Where-Is-My-Exemption-Application), it shows a delay of March 2012 or a10-month waiting period, your application could take as few as 3 months to process, if the organization has a simple filing and the application is complete with user fee at the time of submission.
While you are waiting for your nonprofit status, you may consider a temporary fiscal sponsorship relationship with an existing active organization. For more information on this type of relationship, go to: http://foundationcenter.org/getstarted/tutorials/fiscal/continuum_4e.html
The IRS is currently 9- 10 months behind on the processing applications for nonprofit or exempt status.
I call the IRS often with my clients to verify information and get updates. When I asked the agent why she thought there is such a long delay, she hesitated and did not want to provide a definite answer. However, she did say that it was because of the influx of new applications and possibly the surge of organizations that lost their tax exempt status and had to reapply.
Click Here to Find Out How to Keep Your Tax Exempt Status
I thought this was very interesting because the rates for filing nonprofit status (to date) are $400, if under 10,000 and $850 if the budget is over 10,000 and I remember at one point they were planning to implement a new software or web service that would allow filers to submit their paperwork through a "cyber assistant", which would bring the cost down to $200.
My thoughts? Think they would be more efficient if they worked out the cyber assistant, however they would lose a substantial amount of money. In addition, this issue of losing the tax exempt status if you don't file the 990 in three consecutive years is a relatively new thing.
Some of my clients were furious because they never received notification that their status was in jeopardy. I wonder how many still don't know that this rule exists.
Many clients are now choosing to align themselves with existing organizations to use as a fiscal sponsor while their applications are being approved. The best fiscal sponsor relationships I've seen have been with organizations having previous professional or collaborative relationships.
For the status on IRS exempt application processing, go to:
In order to maintain your 501 c 3 status, there are a few filings you must maintain on a regular basis. These instructions are for California nonprofit organizations, however, similar renewals are required in other states. Please note: late forms submitted often come with steep penalties.
1) Secretary of State
Statement of Information: https://businessfilings.sos.ca.gov/
Statement of Information forms update your nonprofit organization's address and board of directors. This form can be completed online. Enter your California corporate number, complete the form, and pay the fee.
Cost to File: $25.00 (visa or mastercard online)
How Often: Every other year, depending on the month and year your articles of incorporation were filed. For example, if you filed your articles of incorporation in May of 2010, then your Statement of Information form would be due in May of every even year or May 2012, May 2014, and so on.
For more information, you may contact them directly at: (916) 653-6814.
2) Franchise Tax Board
199N Postcard: https://www.ftb.ca.gov/online/199N_ePostcard/index.asp?WT.mc_id=Business_Online_199N
199N is required every year for nonprofit organizations with gross receipts under $25,000. If you organization has gross receipts of over $25,000, you must file form 199. However, churches and religious organizations do not have this filing requirement. For more information about the Franchise Tax Board's nonprofit filing requirements, go to: https://www.ftb.ca.gov/businesses/Exempt_organizations/Filing_Requirements.shtml
Cost to File: Free
How Often: Required every year
3) Department of Justice, Charitable Trusts Registry
RRF-1 forms disclose earnings and require reporting for use by every public benefit corporation required to renew their registration with the Attorney General's Registry of Charitable Trusts. Form RRF-1 must be filed annually within four months and fifteen days after the end of an organization's accounting period. The RRF-1 is a fillable form.
Cost to File: Free
How Often: Every year
4) Internal Revenue Service
Form 990s are required filings for most nonprofit organizations with the exception of religious organizations. For more information on the exact 990 to file, see the above web link in this section. Also, to find out how to keep your nonprofit status, there are lots of tutorials on the topic here: http://www.stayexempt.irs.gov. You will lose your status if you do not file for 3 consecutive years. Please go to the web links for details.
Cost to File: Free
How Often: Every year