Follow this instructions to maintain your South Carolina 501(c)(3) Nonprofit Public Charity in good standing.
8 Ways to Keep Your Nonprofit Legal
In order to keep your 501(c)(3) nonprofit company in South Carolina, 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
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 apply for state income tax exemptions by writing a letter seeking exemption and attaching a copy of your determination letter. Please send these materials to:
SC Department of Revenue PO Box 125 Columbia, SC 29214 Attn: Corporate Department
Phone: 803) 896-1730
B. Exemption from state sales tax
Fill out form ST-387 – Application for Sales Tax Exemption and include a copy of your IRS decision letter, a copy of your charter and bylaws, your most recent balance sheet and income statement, and any additional papers you believe are suitable or essential.
Columbia, SC 29214-0140 SC Department of Revenue License and Registration
Please keep in mind that you may apply for a sales tax exemption online using the South Carolina Department of Revenue’s online tax portal.
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.
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 South Carolina office location. If your registered agent or office address changes, you must submit Form 33-5-102 with the Secretary of State to revise your Articles of Incorporation. You may also inform the Secretary of State using their online business portal of this change.
Your company may be terminated if you fail to inform the Secretary of State of this change.
4. Submit Periodic Reports
Every year, the South Carolina Department of Revenue requires organisations to file an annual report. Include a copy of your Federal Return and Form SC 990-T with your report.
Failure to submit the required reports may result in the termination of your company.
5. Obtain Permits and Licenses
Nonprofits are not eligible for general business licences in South Carolina. Your city or county, however, may have its own standards. Determine if you need to apply for a permit or licence via your local city hall or clerk’s office.
6. Register/Renew Your Charitable Status
If they want to seek or accept contributions, charitable South Carolina NGOs will almost certainly need to register with the Public Charities Division. You may complete your Charitable Organization Registration Statement online or by mail, and you must renew your registration every year.
In addition, your organisation will be needed to send a copy of your IRS form 990, 990-EZ, or 990-PF, as well as the Secretary of State’s Annual Financial Report form.
Please keep in mind that certain groups may be excused from reporting due to predicted funding or organisation nature. If your organisation meets these criteria, you must file an Application for Registration Exemption.
7. Register with the South Carolina Departments of Revenue and Employment and Workforce.
If your organisation will employ people, you must register with both the South Carolina Department of Revenue and the South Carolina Department of Employment and Workforce.
For both departments, registration is simple and may be done online. You may also get in touch with your local Department of Employment and Workforce.
If you want to register by mail, you may use the Department of Revenue’s form SCDOR-111 and the Department of Employment and Workforce’s form UCE-151.
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.