If your nonprofit is not up-to-date with its annual filings, it may be at risk of losing its tax-exempt status. Now is the time to take action and get back on track!  If you have not filed an information return – IRS Form 990, 990-EZ, or 990-N for three years then you must act now – today!

The IRS is offering a one-time relief program for small nonprofits at risk of loosing their tax-exempt status because they failed to file required returns for 2007, 2008 and 2009.

At-risk nonprofits can preserve their status by filing returns by Oct. 15, 2010! We are here to help you stay compliant. Call us at 1-800-928-4161 for assistance.  Two types of relief are available for small exempt organizations — a filing extension for the smallest organizations required to file Form 990-N, Electronic Notice, and a voluntary compliance program (VCP) for small organizations eligible to file Form 990-EZ, Short Form Return of Organization Exempt From Income Tax.

We at the NonprofitLegalCenter.com can help you with your 990 and state fillings. We offer an Ongoing Support Program for complete guidance for compliance to regulations effecting non profits, in order to further your mission, we offer our law firm’s assistance in maintaining your corporation and tax exempt status for the long term.

Ongoing Retainer Program Includes:

While you retain our services, appointments can be made with an attorney at any time. You may also email us to receive answers to your legal questions.  Our ongoing nonprofit counsel services include preparing your annual state registrations and seven hours of legal consultation annually.  These 7 hours can include filing Form 990 or state tax returns, counseling on leases, employment issues, insurance, guidance on maintaining your status, or review of board minutes.  Give us a call for more details.  The discount you receive by signing up for this package is 30% off the attorney’s normal hourly rate.

If your nonprofit needs assistance staying compliant, we are here to help! Contact us at info@nonprofitlegalcenter.com or 1-800-928-4161 for more information.

 

The IRS application process for 501(c)3 tax-exempt status is not a simple one. Luckily, the IRS explains all the necessary steps for a nonprofit to obtain tax-exempt status with the IRS.

The IRS provides a Flow Chart outlining the many documents, forms, and steps most charities will need to complete their 501(c)3 application process.

The Life Cycle of a Public Charity is an easy tool to use. Click any of the steps on the Flow Chart and you will be redirected to an explanation with additional materials and information.

Also, the IRS Website has many resources and IRS Form 1023 and Form 1024 applications for nonprofits.

If you find it overwhelming or would like additional advice and guidance we are here to help. Don’t hesitate to contact us. info@nonprofitlegalcenter.com. 1-800-928-4161

 

 

 

A nonprofit’s Board of Directors functions as the governing body of the nonprofit and has an overall responsibility for the organization. The role of the Board of Directors is to act as a group making decision to further the purpose of the nonprofit. Some of these decisions and responsibilities are:

1. Provide continuity for the organization by setting up a corporation or legal existence, and to represent the organization’s point of view through interpretation of its products and services, and advocacy for them.  It is the responsibility of the Board of Directors to select and appoint a Chief Executive to whom responsibility for the administration of the organization is delegated, including:

– To review and evaluate his/her performance regularly on the basis of a specific job description, including executive relations with the board, leadership in the organization, in program planning and implementation, and in management of the organization and its personnel.
– To offer administrative guidance and determine whether to dismiss or retain the executive.

 

2. Govern the organization by broad policies and objectives, formulated and agreed upon by the Chief Executive and employees, assigning priorities and ensuring the organization’s capacity to carry out programs by continually reviewing its work.


3. 
Acquire and manage sufficient resources for the organization’s operations and to finance the products and services adequately

4.  Account to the public for the operations and services of the organization and expenditures of its funds, including:

– To provide for fiscal accountability, approve the budget, and formulate policies related to contracts from public or private resources.
– To accept responsibility for all conditions and policies attached to new, innovative, or experimental programs.

5. Determine the organization’s mission and purpose and monitor the organization’s programs and services.

6. Ensure effective organizational planning.

7. Enhance the organization’s public image.

8. Assess its own performance

Tips on Board Recruitment

–          Limited or have no family relations on your Board of Directors, unless a private foundation, because of conflicts.
–          Do not involve business relations due to conflicts.
–          Choose Board Member’s whose skill sets will support the nonprofit’s mission – a lawyer, an accountant, individuals in the business world, person    knowledgeable in the area of the nonprofit’s purpose, or members of the community served by the nonprofit.
–          Select a Board of Directors that is committed to the nonprofit’s mission.

 
This list was compiled from various writers and texts; including: Brenda Hanlon, in In Boards We Trust (as slightly modified by Carter McNamara to be “Nonprofit/For-profit Neutral”) and BoardSource, in their booklet “Ten Basic Responsibilities of Nonprofit Boards.”

 

 

 

 

As a Non Profit you are eligible for a reduced postage rate from the US Postal Service.  If you meet the eligibility requirements, which most Non Profits do, you can pay Non Profit Standard Mail rates, which are approximately 40% lower than regular postal rates.

If you are a Non Profit who sends out periodicals, membership information, mass lettering, newsletters, or other mass mailings, the free application for Non Profit Standard Mailing status will save your organizations time and money.

Determine Eligibility

Non Profits that are eligible cannot have funds that benefit any stockholders or members; they include: not for profit organizations: educational, philanthropic, religious, and scientific groups (501(c)3), agricultural and labor (501(c)5), fraternal (501(c)8, veteran groups (501(c)19).

Note: If you are in the process of applying for tax-exempt status, you can apply for Nonprofit Standard Mail Eligibility while your IRS Non Profit tax-exempt status is pending. The mailer may continue to mail in a pending status until a final decision is reached on an appeal of a denied application.

Application Process

Submit an application form, PS Form 3624, Application to Mail at Nonprofit Standard Mail Rates, as well as the supporting documents to the post office you plan to use.  The necessary supporting documents are:

  • The Non Profit’s formation documents, such as the Articles of Incorporation, charter, or constitution.
  • Proof of nonprofit status or pending tax-exempt status: an exemption letter from the IRS approving tax-exempt status.
  • Additional (but not required) documentation: A list of recent nonprofit program activities, the past fiscal year’s financial statement for the Non Profit, the Non Profit’s budget, and any other documents such as your newsletters or bulletins, minutes of meetings, and brochures (more…)