Follow this instructions to maintain your 501(c)(3) Nonprofit Public Charity in Maryland in good standing.
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8 Ways to Keep Your Nonprofit Legal
In order to keep a 501(c)(3) nonprofit company in Maryland, 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/Renew Charitable Registration with the Maryland Comptroller
Follow the Public Inspection Rules.
1. Apply for a state tax exemption.
A. Exemption from state income taxes
After receiving your 501(c) decision letter from the IRS, you may petition for a state income tax exemption. You must submit the following documents to the Maryland Comptroller of the Treasury:
a copy of your IRS letter of decision
a copy of your organization’s bylaws
A official letter to the Maryland Comptroller of the Treasury seeking an exemption, containing a description of your nonprofit’s mission.
a copy of your organization’s most recent financial statements
110 Carroll Street Annapolis, MD 21411 Comptroller of the Treasury Revenue Administration Division
(410) 260-7980; website: www.marylandtaxes.com/
B. Exemption from state sales tax
Fill out the Maryland SUTEC Application, which may be obtained on the Comptroller of Maryland’s website, to apply for a sales tax exemption. You may renew your sales tax exemption online at the website of the Comptroller of Maryland.
ATTN: SUTEC Comptroller of Maryland Revenue Administration Division P.O. Box 1829 Annapolis, MD 21404-1829
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 questions)
(800) 829-1040 (general information)
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 charity that has formed must have a registered agent, also known as a resident agent, with a Maryland office location. If you change your registered agent or their office address, you must complete the Change Principal Office or Resident Agent form with the Department of Assessments and Taxation so that your Articles of Incorporation may be changed. You may fill out this form online or submit it to the following address:
Charter Division, State Department of Assessments and Taxation 301 W. Preston Street, 8th Floor Baltimore, MD 21201-2395
Your company may be terminated if you fail to inform the Department of Assessments and Taxation of this change.
4. Submit Periodic Reports
All organisations in Maryland are required to file an annual report to the Maryland Department of Assessments and Taxation. Nonprofits must file the Form-1 Annual Report or the Form-1 Annual Report and Personal Property Tax Return (if the nonprofit owns, uses, or leases personal property).
Annual reports may be submitted online using the Maryland Business Express website, or by mail to the Maryland Department of Assessments and Taxation.
Failure to submit the required reports may result in the termination of your company.
5. Obtain Permits and Licenses
The majority of Maryland NGOs will not need any form of general business licence. However, it’s worth checking with your local clerk of courts to see whether your city or county has any unique standards that apply to your organisation.
6. Renew your charity registration
If they want to seek donations, charitable Maryland charities will almost certainly need to register with the Maryland Secretary of State.
You may submit the Exempt Organizations Fund-Raising Notice if your group plans to generate less than $25,000 in charitable donations each year.
Form COR-92 must be filed if your group intends to raise more than $25,000 in charitable donations each year.
To contact the Charitable Organizations Division, use the following information:
Postal Address: Charitable Organizations Division, Office of the Secretary of State, State House, Annapolis, MD 21401
[email protected] (email)
Contact us at (410) 974-5534 or 1-800-825-4510. (within Maryland)
There are just a few groups that are exempt from registering, but you may learn more about them on the Secretary of State’s website or by contacting the Charitable Organizations Division.
7. Register with the Maryland Comptroller.
If your organisation will have workers, you must register with the Maryland Comptroller if you haven’t already.
Registration is simple and may be done online. You will be able to register for tax and unemployment insurance accounts using this 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.