To maintain your 501(c)(3) Nonprofit Public Charity in good standing in Colorado, follow this advice.
In order to keep a 501(c)(3) nonprofit company in Colorado, you must:
A. Exemption from state income taxes
Your organisation will be immediately exempt from corporation income taxes after you obtain your 501(c) decision letter from the IRS.
B. Exemption from state sales tax
Nonprofit organisations in Colorado are not automatically exempt from paying sales tax. To see whether your group qualifies for an exemption, see these Colorado laws, which outline the state’s Charitable Organization categorization.
Apply for a sales tax exemption using Form DR0715 if you are qualified.
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.”
If you have any concerns, please contact the IRS at
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.
Any charity that has formed must have a registered agent with a Colorado office location. If you change your registered agent or their office address, you must submit a Statement of Change with the Secretary of State so that your Articles of Incorporation may be revised. This can only be submitted online, so be sure you read the Secretary of State’s instructions carefully.
Your company may be terminated if you fail to inform the Secretary of State of this change.
The Colorado Secretary of State requires nonprofits to file an annual report, which must be submitted by the end of your anniversary month each year (the month you incorporated). You may submit your periodic report online by visiting the Secretary of State’s website.
Failure to submit the required reports may result in the termination of your company.
Permits and licences are administered by individual towns and counties in Colorado. Check with your local clerk’s office to see whether your group need any permissions or licences.
Charitable Colorado organisations must usually register with the Colorado Secretary of State through their website. Each year, you must renew your registration.
Consult the Colorado Statutes to see whether your group is exempt from registering. If your organisation is exempt, you may submit an exemption claim online.
If your organisation intends to hire people, you must register with both the Colorado Department of Revenue and the Colorado Department of Labor and Employment.
Registration is simple and may be done online using an unified registration form. You may also find the Colorado Department of Labor and Employment’s contact information online.
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:
Your company is NOT required to share the following papers or information with the general public:
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