INITIAL FILING REQUIREMENTS TO BECOME A CALIFORNIA NONPROFIT

1. INCORPORATE IN CALIFORNIA

File the Articles of Incorporation, and within 90 days, the Form SI-100 (Statement of Information).

  • It can be done either online or in hard copy.
  • Filing fee: $30 (AOI), $20 (SI-100)
  • For assistance and where to send all documents, contact:

2. OBTAIN 501(c) (3) TAX-EXEMPT STATUS:

Submit Form 1023 online through Pay.gov. 

3. OBTAIN CALIFORNIA STATE’S INCOME TAX EXEMPTION

File Form FTB-3500 together with Articles of Incorporation, Bylaws, detailed financial statements, funding, activities, leases, and literature samples.

  • There is no filing fee.
  • For more information and where to send all documents to:
    • Exempt Organizations Unit MS F120, Franchise Tax Board, P.O. Box 1286, Rancho Cordova, CA 95741-1286
    • (916) 845-4171
    • http://www.ftb.ca.gov/

Note that an organization can file the simpler Form-3500A if it already has an IRS Letter of Determination Form.

4. OBTAIN CALIFORNIA STATE’S SALES AND USE TAX EXEMPTION

Nonprofit organizations in California are usually not exempt from sales and use taxes.

5. REGISTER WITH THE CALIFORNIA STATE’S ATTORNEY GENERAL

File Registration Form CT-1 within 30 days of receiving assets for the charitable purposes for which the organization is organized along with Articles of Incorporation, Bylaws, IRS Form 1023, IRS 501(c) (3) determination letter, most recent IRS Form 990, and a statement describing the primary activity of the organization (a copy of the statement of purposes from the IRS 1023 application will suffice). The Unified Registration Statement form may be filed in place of form CT-1.

  • Filing fee: $50
  • For more information and where to send all documents to:
    • State of California, Office of the Attorney General, Registry of Charitable Trusts, P.O. Box 903447, Sacramento, CA 94203-4470
    • (916) 455-2021
    • http://www.oag.ca.gov/charities

Note that corporations organized and operated primarily as hospitals, schools or religious organizations are exempt from filing, but must furnish information substantiating such status to the above address. See California Government Code section 12583 for details.

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ANNUAL FILING REQUIREMENTS TO MAINTAIN A CALIFORNIA NONPROFIT

1. INTERNAL REVENUE SERVICE

File the Annual Return Form 990: https://www.irs.gov/charities-non-profits/required-filing-form-990-series. Note that the due date is 4 and a half months after the end of the fiscal year.

  • There is no filing fee.
  • For more information and where to send all documents to:
    • Internal Revenue Service, 1160W 12th Street, Ogden, UT 84201-0027
    • (800) 829-3676 (Form 990-related questions) AND (800) 829-1040 (general questions)
    • http://www.irs.gov/charities
  • For Public Charities: Please go to the IRS website to determine which of the three forms to file: Form 990, Form 990-EZ, or Form 990-N.
  • For Private Foundations: You are required to submit the Form 990-PF.

2. CALIFORNIA STATE’S ATTORNEY GENERAL

File Form RRF-1. Include IRS Form 990, 990-EZ, or 990-PF, if your organization’s gross receipts or total assets are over $25,000. Note that charitable corporations organized and operated primarily as religious organizations, hospitals, or educational institutions are exempt from filing.

  • Filing fee: $25-$1,200 (depending on revenues)
  • Due date: 4 and a half months after the end of the fiscal year
  • For more information and where to send all documents to:
    • Registry of Charitable Trusts, P.O. Box 903447, Sacramento, CA 94203-4470
    • (916) 445-2021
    • ag.ca.gov/charities

File Form CT-694. Note that this filing is required only if the organization collects more than 50% of its annual income and more than $1 million in charitable contributions from donors in California during the previous calendar year, and spent more than 25% of its annual income on non-program activities as defined in Business and Professions Code section 17510.9.

  • There is no filing fee.
  • Due date: 4 and a half months after the end of the fiscal year
  • For more information and where to send all documents to:
    • Registry of Charitable Trusts, PO Box 903447, Sacramento, CA 94203-4470
    • (916) 445-2021
    • ag.ca.gov/charities

3. CALIFORNIA FRANCHISE TAX BOARD

File California e-Postcard Form 199 or 199N. If the organization derived more than $1,000 in gross unrelated business income, also file Exempt Organization Business Income Tax Return Form 109.

  • Filing fee: $0-25 (Form 199 Only, form 199N is free), $0 (Form 109)
  • Due date: 4 and a half months after the end of the fiscal year
  • For more information and where to send all documents to:
    • Exempt Organization Unit, Franchise Tax Board, P.O. Box 942857, Rancho Cordova, CA 95741-0501
    • (916) 845-4171
    • http://www.ftb.ca.gov/

Note that some organizations may be exempt from these filings depending on the type of organization. Refer to the Franchise Tax Board’s website for details.

4. CALIFORNIA SECRETARY OF STATE

File Statement of Information Form SI-100. 

  • Filing fee: $20
  • Due date: Biennially before the end of the calendar month during which the original Articles of Incorporation were filed. (However not sooner than the immediately preceding 3 calendar months).
  • For more information and where to send all documents to:
    • Secretary of State, Statement of Information Unit, P.O. Box 944230, Sacramento, CA 94244-2300
    • (916) 657-5448
    • http://www.sos.ca.gov/