Follow this instructions to maintain your 501(c)(3) Nonprofit Public Charity in Illinois in good standing.
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8 Ways to Keep Your Nonprofit Legal
In order to maintain a 501(c)(3) nonprofit company in Illinois,
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 Illinois Department of Employment Security.
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 instantly excluded from paying corporation income tax.
B. Exemption from state sales tax
Fill out form STAX:1 Application for Sales Tax Exemption to apply for a sales tax exemption. This form may be filled out online or sent in.
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.
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 incorporated nonprofit must have a registered agent with an office location in Illinois. If your registered agent or office address changes, you must submit Form NFP 105.10/105.20 with the Secretary of State to revise your Articles of Incorporation.
Your company may be terminated if you fail to inform the Secretary of State of this change.
4. Submit Periodic Reports
All nonprofits in Illinois are required to submit an annual report with the Illinois Secretary of State. Annual reports may be submitted online or by mail using Form BCA 14.05.
Failure to submit the required reports may result in the termination of your company.
5. Obtain Permits and Licenses
A standard business licence will not be required for the vast majority of Illinois NGOs. However, certain Illinois towns and/or counties may have their own criteria. Check with your local clerk or government to see whether organisations are required to get local permits and licences.
6. Register/Renew Your Charitable Status
Charitable Illinois organisations must register with the office of the Illinois State Attorney General. The Attorney General’s website has further information regarding the criteria, as well as registration and financial report forms.
7. Become a member of the Illinois Department of Employment Security.
If your organisation will have any form of workers, you must register with the Illinois Department of Employment Security.
Employer registration is simple and may be done online. On the Illinois Department of Employment Security website, you may also find contact information for your local workforce commission.
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.