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Getting Tax Exempt Status for Your Non-Profit Organization

Tax preparation, Immigration services in Middle Tennessee - Getting Tax Exempt Status for Your Non-Profit Organization | Tax Leaders Inc

Starting a non-profit organization is exciting. Knowing that you are making a difference is a fantastic feeling. There are many steps that you have to take to make your organization successful. The biggest thing that you can do is to become a 501(c) status. This will give you tax exempt status.

1. After you’ve already named your organization, come up with a mission statement. Next file, the Nonprofit Articles of Incorporation form.

2. You will need to assign a board of directors: president, vice president, secretary, and a treasure are the mandatory directors you need. You can have as many directors as you want, though.

3. Create a set of bylaws. Bylaws are required by the IRS in order to file for a 501(c)tax exemption.

4. Create a Nonprofit Conflict of Interest Policy. This is a policy you put in place so that if a conflict of interest comes up, the person responsible for the conflict of interest must tell the board of directors all the details associated with the situation.

5. Apply for an Employee Identification Number. Obtaining one is free. Watch out for scams that will try to charge you for one.

6. The last thing that you will have to do is fill out a 1023 application. This form is how you apply for a 501(c) tax exemption.

Getting your organization up and running these quite a process. There is a lot of information out there. Speak to your local tax consultant, they will be able to help you with whatever you need.