Follow this instructions to maintain your Utah 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 Utah, 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
Register/Renew Charitable Registration with the Utah State Tax Commission
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 and franchise tax exemptions using form TC-161 and submitting a copy of your determination letter.
Technical Research Unit, Utah State Tax Commission, 210 N 1950 West Salt Lake City, UT 84134-3212
Phone: (801) 297-2200
URL: www.tax.utah.gov
B. Exemption from state sales tax
To apply for a sales tax exemption, submit a “N” number (a sales tax exemption number) together with a copy of Form TC-160 and a copy of your IRS decision letter to:
Technical Research Unit, Utah State Tax Commission, 210 N 1950 West Salt Lake City, UT 84134-3212
Phone: (801) 297-2200
Utah’s tax website is www.tax.utah.gov.
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 incorporated charity must have a registered agent with a Utah office location. If you change your registered agent or their office address, you must submit the Corporation Registration Information Change Form (online or by mail) with the Secretary of State so that your Articles of Incorporation may be changed.
Your company may be terminated if you fail to inform the Secretary of State of this change.
4. Submit Periodic Reports
Each year, the Utah Division of Corporations requires charities to file an annual report by the end of your anniversary month. You may submit your yearly report online using the state’s online portal.
Failure to submit the required reports may result in the termination of your company.
5. Sign up with the Utah Tax Commission.
To register with the Utah State Tax Commission, organisations must complete form TC-69. This single form will enable you to register for any/all tax accounts that your company may need, such as employer withholding and unemployment taxes. You may also register online using the OneStop Business Registration service.
6. Register/Renew Your Charitable Status
Charitable Utah charities that seek to collect donations must register with the Division of Consumer Protection of the Utah Department of Commerce.
To register, go to the online application system and bring the required documents:
Bylaws Articles of Incorporation
IRS letter of determination
Copies of your contracts should be shared with any fundraisers.
IRS 990 form or yearly financial report from the most recent fiscal year
This application must be renewed every year.
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.
