To maintain your 501(c)(3) Nonprofit Public Charity in good standing in Kansas, follow this advice.
8 Ways to Keep Your Nonprofit Legal
In order to keep a 501(c)(3) nonprofit company in Kansas, 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
Registration of Charities
Become a member of the Department of Revenue.
Follow the Public Inspection Rules.
1. Apply for a state tax exemption.
A. Exemption from state income taxes
Once you obtain the IRS 501(c) decision letter, your organisation will be immediately excluded from paying corporation income taxes.
B. Exemption from state sales tax
Nonprofit organisations in Kansas are not automatically exempt from paying sales tax. If you want to apply for a sales tax exemption, you must first study the material and procedures on KS-1528.
2. Tax-exempt Organizations’ Annual Federal Returns
A. Federal Income Tax 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 on file.
Any incorporated nonprofit must have a registered agent with a Kansas office address. You must inform the Secretary of State whenever your registered agent or their office address changes so that your Articles of Incorporation may be revised. This amendment may be filed online via the Kansas Business Center.
Your company may be terminated if you fail to inform the Secretary of State of this change.
4. Submit Periodic Reports
The Kansas Secretary of State requires organisations to file an annual report 5.5 months after the end of the fiscal year. For example, if your fiscal year finishes on December 31st, your annual report is due by June 15th.
Annual reports may be submitted online or by mail.
Failure to submit the required reports may result in the termination of your company.
5. Request Permits and Licenses
Kansas does not provide business licences at the state level. You should, however, check with your local clerk’s office to see whether you need to apply for any municipal or county-level permissions or licences.
Furthermore, if your group intends to hold any kind of charity gaming (bingo, raffles, etc.), you must apply for the necessary licence with the Kansas Department of Revenue. For additional information, see their website.
6. Registration of Charities
Before collecting charitable donations, philanthropic Kansas charities are usually required to register with the Secretary of State. The 2019 Kansas Legislative Statute lists charities that are exempt from registering.
If your organisation is needed to register, please complete and send this form. Each year, you must renew your registration. On the Secretary of State’s website, you may find FAQs for charity.
7. Become a member of the Kansas Department of Revenue.
If your organisation will employ people, you must register with the Kansas Department of Revenue.
Registration is simple and may be done online. You may also find contact information on the website of the company taxes department.
8. Follow the 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.