To maintain your 501(c)(3) Nonprofit Public Charity in good standing in Alaska, follow this advice.
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8 Ways to Keep Your Nonprofit Legal
In order to maintain a 501(c)(3) nonprofit company in Alaska, you must:
Apply for a state tax exemption.
Tax-exempt organisations must file annual federal returns.
Keep a Registered Agent on file.
Submit periodic reports
Request permissions and licences
Register or renew your charitable registration with the Alaska Department of Revenue.
Follow the Public Inspection Rules.
1. Apply for a state tax exemption.
A. Exemption from state income taxes
When your nonprofit obtains its 501(c) decision letter from the IRS, it is immediately exempt from Alaska state income taxes.
If you want to apply for a property tax exemption on behalf of your organisation, visit the Alaska Department of Commerce, Community, and Economic Development’s website.
B. Exemption from state sales tax
Although Alaska does not have a statewide sales tax, several cities and towns do. Whether your city has a sales tax, check with the taxation department to determine if organisations are eligible for exemptions.
2. Tax-exempt Organizations’ Annual Federal Returns
A. Federal Annual Returns
The IRS requires most tax-exempt charitable organisations to submit an annual return (Check the IRS website for a list of exceptions).
An organization’s yearly gross receipts dictate which form should be utilised to submit the annual federal return.
The IRS defines ‘gross receipt’ as “the total sums the organisation received from all sources throughout its yearly accounting period, before deducting any expenditures or expenses.”
For gross revenues of $50,000 or more, file Form 990-N.
$200,000 in gross income and $500,000 in total assets —- File 990-EZ
If your gross revenues exceed $200,000 or your total assets exceed $500,000, you must file a 990 form.
If you have any concerns, please contact the IRS at
(800) 829-3676 (Form-related inquiries) (800) 829-1040 (general inquiries)q FAQ
Q: When is the 990 form due?
A: Form 990 is due on the 15th day of the 5th month after the end of the organization’s fiscal year.
For example, if the fiscal year closes on December 31st, the form 990 is due on May 15th.
NOTE: If an organisation fails to complete Form 990 for three years in a row, it will lose its tax-exempt status.
B. Unrelated Business Profits
If an organisation earns more than $1,000 from a trade or company that is unrelated to the organization’s declared purpose, it must submit Form 990-T to pay taxes on that revenue.
If your organisation anticipates to pay $500 or more in unrelated business income taxes for the year, you must pay a quarterly estimated tax on the unrelated business income using Form 990-W.
3. Keep a Registered Agent.
Any nonprofit organisation that has incorporated must have a registered agent with an office in Alaska. If your registered agent or office address changes, you must submit Form 08-447 with the Alaska Department of Commerce, Community, and Economic Development to revise your Articles of Incorporation.
Your company may be terminated if you fail to inform the Alaska Department of Commerce, Community, and Economic Development of this change.
4. Submit Periodic Reports
Nonprofit organisations in Alaska are required to submit initial and biannual reports with the Alaska Department of Commerce, Community, and Economic Development. Initial reports must be submitted within 6 months of your organization’s effective date, either online or by mail.
Nonprofits must also file a biannual report, which may be done online or by mail.
Failure to submit the required reports may result in the termination of your company.
5. Obtain Permits and Licenses
Nonprofit organisations in Alaska must get a general business licence from the Alaska Department of Commerce, Community, and Economic Development. Through their website, you can quickly apply for this business licence.
6. Register/Renew Your Charitable Status
Charitable Alaska organisations will be required to register with the Alaska Department of Law at the very least. Registration and future renewals are simple to perform on their website.
Furthermore, if your organisation will be holding charitable activities like raffles or bingo, it must get a gaming licence. If you want to participate in “choose, click, donate” programmes, you must also register with the Alaska Community Foundation.
7. File an application with the Alaska Department of Revenue.
If your organisation will employ people, you must register with the Alaska Department of Revenue’s Child Support Services Division.
Registration is simple and may be done online or by mail. You may also get in touch with the Alaska Department of Revenue – Child Support Services Division.
8. Obey Public Inspection Rules
To comply with federal requirements governing 501(c)(3) organisations, you must make the following papers available to any member of the public who wants them:
Annual returns for your organisation may be filed up to three years after the due date (including the following Forms: 990-PF, 990-EZ, 990-T, and 990)
Any supporting documentation and attachments for the 990 forms listed above. For Schedule B, however, you simply need to indicate the kind of the gift and the amount given.
Official IRS documentation demonstrating that your group is tax-exempt.
Your organization’s exemption application and any supporting documentation filed with it (including Form 1023).
Your company is NOT required to share the following papers or information with the general public:
Any part of Schedule B of Form 990/990-EZ that names donors.
Anything deemed an adverse judgement, including past rejections of tax-exempt status.
Any extra information that the IRS is entitled to withhold, such as trade secrets, patents, and so forth.