To maintain your 501(c)(3) Nonprofit Public Charity in good standing in Arizona, follow this advice.
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9 Steps to Keeping Your Nonprofit Legal
In order to keep a 501(c)(3) nonprofit company in Arizona, you must:
Publication of the Notice of Incorporation
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 Arizona Workforce Commission.
Follow the Public Inspection Rules.
1. Issue a Notice of Incorporation
You must publish a Notification of Incorporation in a local newspaper for three consecutive weeks within 60 days after incorporation. Furthermore, you must submit an Affidavit of Publication with the Corporation Commission within 90 days of incorporation at:
Corporate Filings Section of the Arizona Corporation Commission 1300 West Washington Street Phoenix, AZ 85007
2. Request a state tax exemption.
A. Exemption from State Income Tax
Once you obtain your 501(c) decision letter from the IRS, your organisation is immediately exempt from Arizona corporate income taxes.
Transaction Privilege Tax B.
In general, most organisations will be forced to pay the transaction privilege tax whenever they make a purchase. However, if your group is buying products for resale, these purchases may be tax-deductible.
Visit the Arizona Department of Revenue’s website to learn more about the Transaction Privilege Tax, assess your organization’s liabilities, and seek an exemption (if your organisation is eligible).
3. 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 questions)
(800) 829-1040 (general information)
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.
4. Keep a Registered Agent.
Any incorporated nonprofit must have a registered agent, also known as a statutory agent, with an office location in Arizona. If you change your registered agent or their office address, you must submit a Statement of Change with the Arizona Corporation Commission so that your Articles of Incorporation may be revised. The ACC’s website makes it simple to complete the Statement of Change.
If you do not inform the ACC of this change, your company may be terminated.
5. Submit Periodic Reports
All charities in Arizona are required to file an annual report with the Arizona Corporation Commission. This report may be submitted online on the ACC’s website. The ACC will determine your organization’s due date, which will also be available on their website.
Failure to submit the required reports may result in the termination of your company.
6. Obtain Permits and Licenses
The majority of Arizona charities will not need any form of state-level general business licence. Typically, business licencing are handled at the municipal or county level. To learn more about local regulations, contact your city hall or the Department of Revenue.
7. Register/Renew Your Charitable Status
Charity NGOs in Arizona are usually excluded from registering as a charitable organisation. If your organisation is classified as a Veteran’s Charitable Organization, you must register with the Arizona Secretary of State. To learn more about these registration requirements, visit the Arizona Secretary of State’s website and go to the Veterans Charities Organization page.
8. Sign up with the Arizona Department of Revenue.
If your organisation intends to hire people, you must register with the Arizona Department of Revenue for both employer withholding and unemployment insurance.
Registration is simple and may be done online or by mail.
9. 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.
FAQ
Q: Can I charge the general public for copies?
A: Yes, you may request a fair fee to get copies of required papers.
Q: How much time do we have to deliver the papers if they are requested?
A: It is advisable to complete these paperwork on the same day. However, if your organisation has restricted office hours owing to the time of year, or if you don’t have a physical office at all, the documentation should be produced within 14 days.
Q: Do I have to provide physical copies of the needed documents?
A: If a member of the public requests copies of papers, whether in writing or in person, you must provide them.
NOTE: Nonprofits should make these materials accessible on their website. Anyone who needs a copy of these papers may simply go to your website and read and/or download them. This will assist your firm in being compliant while also saving time dealing with these demands individually.