Tips from group leaders
501(c)3 Status
Lost Your Paperwork? The IRS was very helpful and promised a copy of the letter within 24 hours to my fax number. For reference the IRS number is (877) 829-5500/1/1 and stay on the line!
-Thaine H. Allison, Jr. , Friends of Malaysia
Do we have to be incorporated to get 501(c)3 status or visa versa?
You can incorporate as a non-profit in your state without having to get 501(c)3 status. –Wayne Johnson, Friends of Micronesia 501(c)3 or 501(c)4 status is a federal IRS status NOT a state incorporation issue. You do not have to be incorporated to become a 501(c)3. –Jerry Haynes, RPCVS San Antonio New groups need to be quite clear about the difference between incorporation as a not-for-profit, which is a state function, and exemption from federal taxes, or 501(c)3 status. Other benefits that come from 501(c)(3) status include eligibility for grants or philanthropic bequests. It is possible to incorporate as a non-profit from the state and not go forward with an application for tax exempt status. But if the organization is going to have money, it probably will want to get the federal designation. --Bill Brandon, Charlotte Area Peace Corps Association
Where do we incorporate and/or file for 510 (c) 3 status?
Friends of Cote d'Ivoire tried to incorporate (and at the same time be listed as a 501c3 in DC and nationally) but the DC system was insane, so we went with Maryland. The only rule Maryland has is that the address of record (which does NOT have to be the same as FOCI's mailing address or FOCI's bank address) be in Maryland. One of our board members lives in Maryland, and his address serves as the address of record. I was surprised about the rules in Maryland as far as tax filing and 501(c)3 designation. Because FOCI does not have an income of more than $10,000 per year, we are not required to fill out any complicated tax documents. We only have to fill out a simple property tax form each year. And in order to be considered 501(c)3 nationally, all we had to do with our incorporation is include a) check of a box on the filing form for the state that we want to be non-profit, and b) include a statement in our Articles of Incorporation that we are 501c3 non-profit. Simple, really. --Jeanette Mesite Frem, Friends of Cote D’Ivoire
How do we know whether we should file for tax-exempt status?
Our group has operated without being a 501.c.3 organization because we do not do enough fund-raising to justify the paperwork and fees that go along with getting and keeping that designation. I know from a previous discussion on the GL list that some groups feel it is really important to have it, but it's worked
Tips from group leaders
fine for us without it. The one time we did major fund-raising, we partnered with another group that already was 501.c.3, and they collected all the donations. –Mary Anne Crecelius, Pittsburgh Area PCA Go to the IRS website at http://www.irs.gov and go the Form and Publications section to download Package 1023 Application for Determination of Exemption to learn about how to file for tax exempt status. Organizations must file IRS form 8718 and pay a $150 user determination fee for the IRS to examine your application. If the organization expects gross receipts averaging more than $10,000 during its first four years, the determination fee is $500. –Jerry Haynes, RPCVs San Antonio Where can we seek more information and advice? The Internet Non-Profit Center such as at http://www.nonprofits.org/npofaq/02/04.html has some ideas about incorporation. The Foundation Center also is a good resource: http://www.fdncenter.org/learn/faqs/samplearticles.html --Tim Resch, Friends of Morocco