Table of Contents

Part One: How Nonprofit Corporations Work

1. Is Nonprofit Incorporation Right for You?

Is Your Group a Nonprofit That Can Use This Book?
Benefits of the Nonprofit Corporation
The Disadvantages of Going Nonprofit
How Nonprofits Raise, Spend, and Make Money
Your Path to Nonprofit Status
Where Should You Incorporate?

2. Legal Rights and Duties of Incorporators, Directors, Officers, Employees, and Members

Incorporators and Their Role as Promoters
Directors
Officers
Employees
Membership Nonprofits

3. Requirements for Section 501(c)(3) Tax Exemption

Section 501(c)(3) Organizational Test
Valid Purposes Under Section 501(c)(3)
Other Requirements for 501(c)(3) Groups
Information for Specific Questions About Your Group's Activities

4. Public Charities and Private Foundations

The Importance of Public Charity Status
How to Qualify for Public Charity Status
Private Foundations

5. Other Tax Benefits and Reporting Requirements

Federal and State Tax Deductions for Contributions
Federal Estate and Gift Tax Exemptions
Federal Unrelated Business Income Tax
State Corporate Income Tax Exemptions
Other State Taxes
State Solicitation Regulations
State Nonprofit Corporate Report Requirements

Part Two: Incorporating Your Nonprofit

6. Choose a Name and File Your Articles of Incorporation

Obtain Materials From Your Secretary of State
Choose a Corporate Name
Check Name Availability
What to Do When There's a Name Conflict
Reserve Your Corporate Name
Perform a Name Search
Protect Your Name
Prepare Your Articles of Incorporation
File Your Articles of Incorporation

7. Prepare Your Bylaws

Choose a Membership or Nonmembership Structure
Purpose and Scope of Our Bylaws
Prepare Your Bylaws
Prepare Membership Provisions

8. Apply for Your Federal 501(c)(3) Tax Exemption

Getting Started
Do You Need to File Form 1023?
Prepare Your Tax Exemption Application
Filling Out the Schedules
Assemble and Mail Your Application to the IRS
What to Expect From the IRS
The Federal Determination Letter

9. Final Steps in Organizing Your Nonprofit

Obtain State Corporate Income Tax Exemption
Set Up a Corporate Records Book
Prepare the Minutes of Your First Board of Directors Meeting
Place Minutes and Attachments in Corporate Records Book
Issue Membership Certificates
File Fictitious or Assumed Business Name Statement
Apply for a Federal Nonprofit Mailing Permit
Apply for Property Tax Exemptions
File an Initial Corporate Report Form
Register With the Attorney General
Comply With Political Reporting Requirements
Prepare Assignments of Leases and Deeds
File Final Papers for Prior Organization
Notify Others of Your Incorporation

10. After Your Corporation Is Organized

Piercing the Corporate Veil -- If You Want to Be Treated Like a Corporation, It's Best to Act Like One
Federal Corporate Tax Returns
State Corporate Tax Returns and Reports
Federal and State Corporate Employment Taxes
Employee Income Tax Returns
Sales Tax Forms and Exemption From Sales Tax
Licenses and Permits
Workers' Compensation
Private Insurance Coverage
Dissolving a Nonprofit Corporation

11. Lawyers and Accountants

Lawyers
Legal Research
Accountants and Tax Advice

A. Appendix A: How to Use the CD-ROM

Installing the Form Files Onto Your Computer
Using the Word Processing Files to Create Documents
Using Government Forms
Files Included on the Forms CD

Corporate Forms
Incorporation Checklist
Request for Nonprofit Corporation Information
Name Availability Letter
Application for Reservation of Corporate Name
Articles of Incorporation
Articles Filing Letter
Bylaws
Waiver of Notice and Consent to Holding of First Meeting of Board of Directors
Minutes of First Meeting of Board of Directors

IRS Forms and Publications and Tax Articles
Form 1023: Application for Recognition of Exemption
Instructions for Form 1023
Form SS-4: Application for Employer Identification Number
Instructions for Form SS-4
Form 5768: Election/Revocation of Election by an Eligible Section 501(c)(3) Organization To Make Expenditures To Influence Legislation
Publication 557: Tax Exempt Status for Your Organization
Publication 4220: Applying for 501(c)(3) Tax-Exempt Status
Publication 4221: Compliance Guide for 501(c)(3) Tax-Exempt Organizations
Publication 1828: Tax Guide for Churches and Religious Organizations
IRS Revenue Procedure 75-50
IRC Section 4958, Taxes on Excess Benefit Transactions
IRS Regulations Section 534958-0, Table of Contents
Public Charity or Private Foundation Status Issues Under IRC §§ 509(a)(1)-(4), 4942(j)(3), and 507
Disclosure, FOIA, and the Privacy Act
Update: The Final Regulations on the Disclosure Requirements for Annual Information Returns and Applications for Exemption
Education, Propaganda, and the Methodology Test
Election Year Issues
Lobbying Issues
Private School Update
UBIT: Current Developments
Intermediate Sanctions (IRC Section 4958) Update

B. Appendix B: State Sheets

C. Appendix C: Information and Tear-Out Forms

Incorporation Checklist
Special Nonprofit Tax-Exempt Organizations
Request for Nonprofit Corporation Information
Name Availability Letter
Application for Reservation of Corporate Name
Articles of Incorporation
Articles Filing Letter
Bylaws (including Membership Provisions and Adoption of Bylaws clause)
Waiver of Notice and Consent to Holding of First Meeting of Board of Directors
Minutes of First Meeting of Board of Directors
IRS Form 1023: Application for Recognition of Exemption
IRS Form SS-4: Application for Employer Identification Number
IRS Form 5768: Election/Revocation of Election by an Eligible Section 501(c)(3) Organization To Make Expenditures To Influence Legislation

Index

Back to Top