Follow this instructions to maintain your Montana 501(c)(3) Nonprofit Public Charity in good standing.
7 Ways to Keep Your Nonprofit Legal
In order to keep a 501(c)(3) nonprofit company in Montana, 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
Employees
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 state income tax exemptions using form EXPT.
B. Exemption from state property taxes
Some organisations in Montana may be qualified for a property tax exemption. Review the Montana Department of Revenue’s website for further information and to obtain the application.
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)
FAQ
Q: When is form 990 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 in Montana with an office location. 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. You may change your Registered Agent or Registered Office information on the Secretary of State’s website.
Your company may be terminated if you fail to inform the Secretary of State of this change.
4. Submit Periodic Reports
The Montana Secretary of State requires NGOs to file an annual report by April 15th of each year. This report may be submitted online at the Secretary of State’s website.
Failure to submit the required reports may result in the termination of your company.
5. Obtain Permits and Licenses
The majority of NGOs in Montana will not need a state-level business licence. Check with your city or county clerk to see if there are any local restrictions you must follow.
If your organisation intends to hold charity games such as raffles or bingo, it will almost certainly need to get a gambling licence from the Montana Department of Justice. Visit their website to find out more about gaming licences and application forms.
6. Workers
If your organisation intends to hire people, you must register with both the Montana Department of Revenue and the Montana Department of Labor and Industry.
The Montana Department of Revenue allows you to simply register for an employer withholding account online. You may also register for a Montana Department of Labor and Industry unemployment insurance tax account online.
7. 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.