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FORM A 501C3 IN FLORIDA

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FORM A 501C3 IN FLORIDA Powered By Docstoc
					    Forming a 501(c)3
Organization in Florida
                         Step By Step
                  Deena V. Tyler-Satterfield




                                               2010




     DEENAVTYLERSATTERFIELD@GMAIL.COM
                March 28, 2010      [FORMING A 501(C)3 ORGANIZATION IN FLORIDA]


STEPS TO FORMING A 501(C)3
ORGANIZATION

Y      OU’VE IDENTIFIED A NEED IN YOUR COMMUNITY AND NOW YOU WANT TO START
       A NON-PROFIT ORGANIZATION TO MEET THAT NEED. THIS DOCUMENT IS
       DESIGNED TO BE A STEP BY STEP GUIDE TO HELP YOU ACCOMPLISH THAT GOAL.

        1ST      CHOOSE A ORGANIZATION NAME

UNIQUE AND DESCRIPTIVE

       Check for availability with the Secretary of State or Florida Division of Corporations because your
        nonprofit's name may not be the same as, or misleadingly similar to, other names on file.

       The name must contain the terms "Corporation" or "Incorporated" or “Inc.” or "Corp.", but not the term
        "company."

        2ND      CREATE A MISSION STATEMENT

CLEARLY OUTLINE THE GOALS AND VALUES OF YOUR ORGANIZATION

       Who will the organization serve?

       How will the organization accomplish this service?

       Not lengthy, about 25 words or less.

        3RD      APPOINT DIRECTORS

DIRECTORS ESTABLISH HOW THE ORGANIZATION WILL BE RUN

       In Florida, you must have at least 3 directors, at least 18 years old but they do not have to live in the state.

       Directors may be required to apply for a license, open a bank account, etc.

        4TH      HOLD AN ORGANIZATIONAL MEETING

AS THE INCORPORATOR, YOU SHOULD HOLD AN INITIAL ORGANIZATIONAL MEETING WITH YOUR
BOARD OF DIRECTORS TO HANDLE EARLY BUT VITAL ORGANIZATION ISSUES:

APPOINT OFFICERS

       ALTHOUGH NOT REQUIRED AT THIS POINT, YOU SHOULD START CONSIDERING WHO YOU WANT TO
        FILL THESE POSITIONS
       MEMBERS OF YOUR BOARD CAN ALSO SERVE AS CORPORATE OFFICERS.

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                March 28, 2010    [FORMING A 501(C)3 ORGANIZATION IN FLORIDA]

      IT IS GOOD PRACTICE TO APPOINT AT LEAST ONE CORPORATE OFFICER/EXECUTIVE DIRECTOR.
       OTHER COMMON OFFICERS INCLUDE, PRESIDENT, VICE PRESIDENT, SECRETARY, TREASURER

CREATE AND ADOPT BYLAWS

BYLAWS ARE THE RULES OF THE ORGANIZATION

      NOT REQUIRED TO INCORPORATE BUT THEY WILL BE REQUIRED TO FILE
       FOR TAX EXEMPTION.
      NOT REQUIRED TO FILE BYLAWS WITH THE STATE, BUT YOU MUST KEEP A            RECORD KEEPING IS
       COPY AT THE NONPROFIT CORPORATION'S PRINCIPAL PLACE OF                     REQUIRED BY LAW!
       ORGANIZATION.
                                                                                   Federal and state laws
      THERE ARE NO SET CRITERIA FOR THE CONTENT OF BYLAWS, BUT THEY
                                                                                     require that many
       TYPICALLY SET FORTH INTERNAL RULES AND PROCEDURES.
                                                                                documents are kept at your
ADOPT RESOLUTIONS & POLICIES                                                     principal place of business
                                                                                    and are available for
ESTABLISHING THESE POLICIES AND PROCEDURES WILL HELP OPERATIONS RUN             inspection when requested.
SMOOTHLY
                                                                                Examples in include articles
      AUTHORIZATIONS FOR CHECKING ACCOUNT                                       of incorporation, bylaws,
      BORROWING OF MONEY                                                         minute books, property
      REIMBURSEMENT OF REASONABLE OUT-OF-POCKET EXPENSES                        records, general ledgers,
      HANDLING CONFLICTS OF INTEREST                                           receipts and disbursements
      SALARY COMPENSATION, ETC.                                                 journals, payroll records,
      SETTING DATES FOR MEETINGS OF THE DIRECTORS                                 banking records, and
      BUDGET AND ACCOUNTING SYSTEM WITH DETAILED EXPENSE                                 invoices.
       PROJECTIONS. IF THE BOARD OF DIRECTORS DOES NOT INCLUDE ONE,
       ENLIST THE HELP OF A FINANCIAL CONSULTANT TO MAINTAIN
       ACCOUNTABILITY TO THE PUBLIC AND THE GOVERNMENT. IT WILL ALSO
       MAKE TAX EXEMPTION FILING A LOT EASIER.

OTHER MATTERS TO CONSIDER

      OBTAIN THE APPROPRIATE INSURANCE FOR YOUR NONPROFIT CORPORATION.

      APPLY FOR A NONPROFIT POSTAL PERMIT FOR SIGNIFICANTLY REDUCED POSTAGE RATES FOR
       CERTAIN TYPES OF PRINTED MAIL. APPLY FOR A NONPROFIT MAILING PERMIT FROM THE U.S. POST
       OFFICE USING PS FORM 3624.

      OBTAIN YOUR FREE CONSUMER’S CERTIFICATE FOR TAX EXEMPTION. FLORIDA FORM DR-5.
       BUSINESSES WILL WANT THIS CERTIFICATE TO WAIVE YOUR SALES TAX.




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                March 28, 2010     [FORMING A 501(C)3 ORGANIZATION IN FLORIDA]




       5TH       INCORPORATE YOUR NONPROFIT ORGANIZATION

THE PREVIOUS SECTIONS WILL GIVE YOU MUCH OF THE INFORMATION YOU NEED TO SUCCESSFULLY
PREPARE AND FILE ARTICLES OF INCORPORATION. REVIEW THE SAMPLE ARTICLES OF
INCORPORATION TO LEARN EXACTLY WHAT YOU WILL NEED.

      CAN BE DONE ONLINE AT SUNBIZ.ORG

      TOTAL FEE $78.75; (The filing fee is $35; Registered Agent fee is $35; highly recommended to also get the
       Certified Copy $8.75)

      THE MAJORITY OF SECTIONS ARE EASY TO UNDERSTAND; HOWEVER PAY CLOSE ATTENTION TO:

            O     REGISTERED AGENT. THIS IS THE LEGAL ADDRESS FOR SERVICE OF PROCESS IN THE EVENT
                 OF A LAWSUIT. MAKE SURE THIS IS A MONITORED ADDRESS BECAUSE A MAILING HERE
                 MEANS YOU HAVE LEGALLY RECEIVED IT.
            O    IF YOU HAVE NOT ALREADY APPOINTED DIRECTORS, YOU MUST STATE HOW YOU INTEND
                 TO APPOINT THEM.
            o    STATEMENT OF PURPOSE. YOUR MISSION STATEMENT, IF DETAILED ENOUGH, MAY MEET
                 THIS REQUIREMENT HOWEVER, IF YOU INTEND TO FILE FOR TAX EXEMPT STATUS WITH THE
                 IRS, HE IRS SUGGESTS YOU USE THE FOLLOWING LANGUAGE:


                Said corporation is organized exclusively for charitable, religious, educational, and
                scientific purposes, including, for such purposes, the making of distributions to
                organizations that qualify as exempt organizations under section 501(c)(3) of the
                Internal Revenue Code, or the corresponding section of any future federal tax code.

       6TH       GET YOUR EMPLOYER IDENTIFICATION NUMBER

IT IS LIKE A SOCIAL SECURITY NUMBER FOR YOUR ORGANIZATION

      Required to perform any business on behalf of the organization & to obtain your 501(c) 3 preparation.

      Easy to do online.

       7TH       REGISTER WITH STATE & LOCAL OFFICES

MAKE SURE YOU ARE IN COMPLIANCE WITH ALL STATE LAW REQUIREMENT

      If you intend to solicit contributions from the citizens in Florida, you must register with the Division of
       Consumer Services annually. DACS-10100

      Contact Your County or city clerk's office or other local government authority to see what basic business
       and occupancy licenses apply to you.

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                March 28, 2010     [FORMING A 501(C)3 ORGANIZATION IN FLORIDA]




A NOTE ON CHURCHES AND FEDERAL TAX EXEMPTION
ACCORDING TO THE IRS, CHURCHES ARE AUTOMATICALLY CONSIDERED TAX EXEMPT UNDER 501(C)
(3) EVEN WITHOUT FILING A 1023 FORM. ADDITIONALLY, DONATIONS TO A CHURCH ARE TAX
DEDUCTIBLE WITHOUT THIS FILING. HOWEVER, MANY CHURCHES SEEK TO RECEIVE THEIR TAX-
EXEMPTION DETERMINATION LETTER BECAUSE IT CLARIFIES TO DONORS THAT CONTRIBUTIONS ARE
TAX DEDUCTIBLE. ADDITIONALLY, THE LETTER MAKES IT EASIER TO GET OTHER TAX EXEMPTIONS FOR
INCOME, SALES, & PROPERTY TAXES WHILE EHNACING YOUR ELIGIBILTY FOR FEDERAL, STATE, AND
PRIVATE GRANTS.


       8TH      APPLY FOR TAX EXEMPTION

FEDERAL TAX EXEMPTION

      USE IRS Form 1023 & THE INSTRUCTIONS IN PUBLICATION 557.
      APPLYING CAN BE TIME CONSUMING. THE IRS INDICATES THAT IT WILL TAKE AT LEAST 4 HOURS TO
       COMPLETE THE FORM AND THREE TO SIX MONTHS FOR THE IRS TO MAKE A DETERMINATION.
      APPLYING CAN BE EXPENSIVE. FILLING FEES ARE $300 OR $750 BASED ON YOUR PROPOSED BUDGET
       IN ADDITION TO LEGAL AND ACCOUNTING FEES THAT YOU MAY INCUR.


               AFTER JANUARY, 2010, FEES WILL INCREASE BY $100.00

      BEFORE YOU BEGIN COMPLETING THE FORM, YOU SHOULD GATHER THE FOLLOWING INFO:

           How & Why The Organization Was Formed
           Anticipated Activates of The Corporation
           How The Organization Will Raise Money
           The Corporation's Anticipated Annual Gross Receipts, Budget, And Financial History
           Membership Information
           Compensation Amounts Of Director, Officers And/or Employees

                "TOP TEN" REASONS IRS TURNS DOWN 1023 APPLICATIONS ARE:

                                            10. Not Enough Financial Data

                                     9. Incorrect & Inconsistent Accounting Period

            8. Incomplete Information on Officers and Board Members like Salaries & Annual Compensation

                                 7. Activities of The Organization Not Specific Enough

                                         6. Financial Statements Not Complete

                                                 5. Pages Are Missing

                                                4. Improper Signature




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                March 28, 2010    [FORMING A 501(C)3 ORGANIZATION IN FLORIDA]

                                              3. Bylaws Not Included

                                 2. Copies of Articles of Incorporation Not Included

                                          1. Incorrect Or No User Fee!

STATE TAX EXEMPTION

   In most cases, you do not need federal tax exemption to apply for tax exempt status with the
   state; however, including it will make the process easier. Include a copy of your IRs letter when
   you file for:

      STATE INCOME TAX EXEMPTION - FLORIDA DEPARTMENT OF REVENUE, FORM 1120: FLORIDA
       CORPORATE INCOME/FRANCHISE AND EMERGENCY EXCISE TAX RETURN
      STATE SALES TAX EXEMPTION-FLORIDA DEPARTMENT OF REVENUE. FORM DR5: APPLICATION FOR A
       CONSUMER'S CERTIFICATE OF EXEMPTION




T   HIS GUIDE WAS DESIGNED TO GIVE AN OVERALL PICTURE OF THE STEPS YOU WILL
    TAKE WHEN FORMING A 501(C)3 ORGANIZATION IN FLORIDA. IT IS NOT A
    SIMPLY, QUICK OR EVEN EASY PROCESS. HOWEVER, FULFILLING YOUR GOAL OF
CREATING A SUCCESSFUL AND WELL FUNDED ORGANIZATION THAT IMPROVES YOU
COMMUNITY AND THE LIVES OF ITS RESIDENTS WILL NO DOUBT BE WORTH THE
EFFORT.




                                                                                       Deena V. Tyler-Satterfield
                                                                                                      [Company]
                                                                                           Lyf.deena@live.com
                                                                                                      3/28/2010




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DOCUMENT INFO
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Description: YOU’VE IDENTIFIED A NEED IN YOUR COMMUNITY AND NOW YOU WANT TO START A NON-PROFIT ORGANIZATION TO MEET THAT NEED. THIS DOCUMENT IS DESIGNED TO BE A STEP BY STEP GUIDE TO HELP YOU ACCOMPLISH THAT GOAL.
Deena Tyler-Satterfield Deena Tyler-Satterfield Independent Agent www.StraightForwardLegal.com
About In her twelve years as an attorney she has represented individuals, corporations, non- profits and governmental agencies in an impressive and broad range of legal disciplines. She was frequently trusted by mothers, fathers, children, judges, and state child protection agencies to guide them through some of the most contentious and stressful family disputes. In too many cases, Deena watched parties exhaust themselves and their finances in expensive, lengthy, and stressful litigation. In many cases, they left the courtroom unsatisfied. Her greatest achievements came when she helped parties reach successful and productive agreements.