To maintain your 501(c)(3) Nonprofit Public Charity in good standing in North Dakota, follow this advice.
8 Ways to Keep Your Nonprofit Legal
In order to keep your 501(c)(3) nonprofit company in North Dakota, 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 Your Charitable Organization
Employees Obey Public Inspection Regulations
1. Apply for a state tax exemption.
A. Exemption from State Income Tax
When your nonprofit obtains its 501(c) decision letter from the IRS, it is instantly excluded from paying corporation income taxes.
B. Exemption from State Sales Tax
The majority of North Dakota organisations will not be able to claim a state sales tax exemption. For additional information on sales tax exemptions, see the North Dakota Tax Commissioner’s website.
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 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 organisation that has formed must have a registered agent with a North Dakota 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 alert the Secretary of State through the First Stop website.
Your company may be terminated if you fail to inform the Secretary of State of this change.
4. Submit Periodic Reports
The North Dakota Secretary of State requires nonprofits to file an annual report each year following incorporation, which is due by February 1st. Annual reports may be submitted electronically via the website of the Secretary of State.
Failure to submit the required reports may result in the termination of your company.
5. Obtain Permits and Licenses
The majority of North Dakota charities will not need any form of general business licence. You should, however, check with your city or county clerk to see if there are any local regulations you must follow.
If your organisation intends to engage in charitable gaming activities such as bingo or raffles, you must apply for a State Gaming License with the North Dakota Attorney General’s Office.
6. Register/Renew Your Charitable Status
North Dakota charitable charities must register online with the Secretary of State. Each year, you will very certainly be obliged to file a Charitable Annual Report to the Secretary of State.
7. Workers
If your company intends to hire people, you must:
Register with the North Dakota Office of State Tax Commissioner – Apply online or by mail for an employer withholding account with the Tax Commissioner’s Office.
Register with the North Dakota job service- Register for an unemployment insurance tax account with the job service online or by mail.
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.