All state chapters must provide up-to-date status information to the committee liaison on an annual basis.
This is solely the responsibility of the chapter. Please see IRS for further information regarding annual deadlines and responsibilities.
The following information below may be subject to change.
IRS Filing
A 990-N form, also known as an e-Postcard, is a document that certain small tax-exempt organizations must file annually with the Internal Revenue Service (IRS) to maintain their tax-exempt status. This form is typically filed by organizations with gross receipts of $50,000 or less per year. Filing the 990-N is crucial for nonprofit organizations as it ensures compliance with IRS regulations and helps maintain their tax-exempt status.
Instruction Guide for Filing a 990-N Document:
- Determine Eligibility:
Before proceeding with the filing process, ensure that your organization is eligible to file Form 990-N. Your organization must meet the following criteria:- Gross receipts must be $50,000 or less for the tax year.
- Your organization must be organized and operated exclusively for exempt purposes under section 501(c)(3) of the Internal Revenue Code.
- Gather Required Information:
Collect the necessary information and documents needed to complete the 990-N form. This includes:- Legal name and address of the organization.
- Employer Identification Number (EIN) of the organization.
- Tax year for which you are filing.
- Principal officer’s name and address.
- Confirmation that your organization’s annual gross receipts are $50,000 or less.
- Access the IRS Website:
Visit the IRS website and navigate to the Electronic Filing System for Form 990-N (e-Postcard) page. - Create an Account:
If your organization has not filed Form 990-N before, you will need to create an account on the IRS website. Provide the required information to register your organization and create a user account. - Log In to Your Account:
Log in to your account using the credentials you created during the registration process. - Enter Organization Details
Enter the necessary details about your organization, including its legal name, address, and EIN. Verify that all information is accurate and up to date. - Confirm Gross Receipts:
Confirm that your organization’s gross receipts for the tax year are $50,000 or less. If your gross receipts exceed this threshold, you are not eligible to file Form 990N and must explore other filing options. - Submit the Form:
Once you have entered all the required information and verified its accuracy, submit the Form 990-N electronically through the IRS website. Ensure that you receive a confirmation of successful submission. - Record Keeping:
Keep a copy of the filed Form 990-N for your organization’s records. This document may be required for future reference or in case of an IRS audit. - Monitor Compliance:
Regularly monitor your organization’s compliance with IRS filing requirements to ensure that you continue to meet the criteria for filing Form 990-N. If your organization’s gross receipts exceed $50,000 in a tax year, you must file a different form as required by the IRS.
By following these steps, your chapter can successfully file the 990-N document and maintain compliance with IRS regulations.
IRS link to 990-N self-file postcard
Filing and incorporating as a 501(c)(6)
A 501(c)(6) organization is a type of tax-exempt nonprofit organization recognized by the Internal Revenue Service (IRS) under section 501(c)(6) of the Internal Revenue Code. These organizations are typically referred to as business leagues, chambers of commerce, real estate boards, trade associations, and professional associations. Unlike 501(c)(3) organizations, which are charitable organizations, 501(c)(6) organizations are focused on promoting the common business interests of its members rather than charitable, religious, educational, or scientific purposes.
Process to Incorporate as a 501(c)(6) Organization:
- Determine Eligibility:
Before incorporating as a 501(c)(6) organization, ensure that your proposed activities align with the requirements set forth by the IRS for this tax-exempt status. Your organization must be formed to promote the common business interests of its members and not for the private benefit of any individual or group of individuals. - Choose a Name:
Select an appropriate name for your organization. Ensure that the chosen name is not already in use by another entity and complies with any state-specific naming regulations. - Draft Articles of Incorporation:
Prepare articles of incorporation for your organization. These legal documents will outline the purpose of your organization, its structure, governance provisions, and any other relevant details required by your state’s laws. - File Articles of Incorporation:
Submit the articles of incorporation to the appropriate state agency responsible for registering corporations. Each state has its own filing requirements and fee structures. Pay the necessary filing fees and await approval from the state. - Establish Bylaws:
Develop bylaws that will govern the internal operations and decision-making processes of your organization. Bylaws typically include provisions related to membership, board structure, officer roles and responsibilities, meeting procedures, and other administrative matters. - Obtain an Employer Identification Number (EIN):
Apply for an Employer Identification Number (EIN) from the IRS. This unique identifier is used for tax purposes and is necessary for opening bank accounts, filing taxes, and other administrative tasks. - Apply for Tax-Exempt Status:
Once your organization is incorporated, you can apply for tax-exempt status under section 501(c)(6) of the Internal Revenue Code. To do this, you will need to complete and submit IRS Form 1024, Application for Recognition of Exemption, along with any required supporting documentation and application fees. - Develop Policies and Procedures:
Establish internal policies and procedures to ensure compliance with applicable laws and regulations, as well as to govern the day-to-day operations of your organization. This may include financial management policies, membership criteria, conflict of interest policies, and more. - Maintain Compliance:
Stay informed about ongoing compliance requirements for 501(c)(6) organizations, including annual reporting obligations to the IRS and any state regulatory agencies. Fulfill all filing and reporting requirements in a timely manner to maintain your organization’s tax-exempt status. - Seek Professional Guidance:
Consider seeking advice from legal and financial professionals with experience in nonprofit law and tax-exempt organizations. They can provide valuable guidance throughout the incorporation process and help ensure that your organization meets all legal and regulatory requirements.
By following these steps and fulfilling all necessary requirements, your organization can successfully incorporate as a 501(c)(6) organization and pursue its mission of promoting the common business interests of its members while enjoying tax-exempt status.