To maintain your 501(c)(3) Nonprofit Public Charity in good standing in New Jersey, follow this advice.
8 Ways to Keep Your Nonprofit Legal
In order to keep your 501(c)(3) nonprofit company in New Jersey, 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 or renew your charitable registration with the New Jersey Department of Revenue.
Follow the Public Inspection Rules.
Legal Help CTA
1. Apply for a state tax exemption.
A. Exemption from state income taxes
Your charity will be formally exempt from paying the New Jersey Corporation Business Tax after you obtain your 501(c) decision letter from the IRS. If you need an official confirmation for your records, please contact the New Jersey Department of Treasury.
New Jersey Division of Taxation Regulatory Services Branch PO Box 269 Trenton, NJ 08695
(609) 292-5994 for more information.
B. Exemption from state sales tax
To learn more about New Jersey sales tax exemptions, see the New Jersey Division of Taxation’s instructions and, if appropriate, complete out form ST-4 or REG-1E.
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)
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 organisation that has formed must have a registered agent with a New Jersey office location. If your registered agent or office address changes, you must submit Form C-104G with the New Jersey Division of Revenue to amend your Public Records Filing.
Your company may be terminated if you fail to inform the New Jersey Division of Revenue of this change.
4. Submit Periodic Reports
The New Jersey Division of Revenue and Enterprise Services requires all organisations to submit an annual report on their incorporation anniversary. This report may be submitted online through their website.
Failure to submit the required reports may result in the termination of your company.
5. Obtain Permits and Licenses
The majority of charities in New Jersey will not need a state-level business licence. Business licences and permits, on the other hand, are normally handled at the municipal or county level. Check with your local Clerk of Courts to see if any permits and/or licences are necessary.
6. Register/Renew Your Charitable Status
Charitable New Jersey NGOs will almost certainly need to register with the Attorney General’s Office. On their website, you may learn more about these criteria, including renewal requirements. If you need to register, you may do it either online or by mail.
7. File a tax return with the New Jersey Department of Revenue.
If your organisation will have any form of workers, you must register with the New Jersey Department of Revenue.
Registration is simple and may be done online or by submitting form NJ-REG to: New Jersey Department of Revenue P.O. Box 252 Trenton, New Jersey 08646-0252
Visit the Division of Taxation’s website to learn more about withholding rules. Visit the Department of Labor and Workforce Development’s website to learn more about your duties as an employer.
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.
Legal Help CTA