Follow this instructions to maintain your 501(c)(3) Nonprofit Public Charity in Virginia in good standing.
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8 Ways to Keep Your Nonprofit Legal
In order to keep a 501(c)(3) nonprofit company in Virginia, 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 Virginia Department of Taxation and the Virginia Employment Commission.
Follow the Public Inspection Rules.
1. Apply for a state tax exemption.
A. Exemption from state income taxes
When your nonprofit obtains its 501(c) decision letter from the IRS, it is instantly excluded from paying state income taxes. There is no further documentation required to be qualified for this exemption.
B. Exemption from state sales tax
Some NGOs are eligible for sales and use tax exemptions, but they must fulfil certain criteria. If you qualify for a sales tax exemption, go to the Virginia Tax website and register your organisation.
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.”
3. Keep a Registered Agent.
Any charity that has incorporated must have a registered agent with a Virginia office location. If you change your registered agent or their office address, you must submit Form SCC635/834 with the State Corporation Commission so that your Articles of Incorporation may be changed. If you prefer to fill out a form and mail it in, you may get a copy of the form on this page from the SCC.
Your company may be terminated if you fail to inform the State Corporation Commission of this change.
4. Submit Periodic Reports
The Virginia State Corporation Commission will send an annual report notification to the registered office of your organisation, along with information on when your annual report is due.
If your nonprofit’s director or officer information has not changed, you may submit your annual report online. You may request an annual report form if you have made changes to this information or if you want to have a form addressed to you.
Failure to submit the required reports may result in the termination of your company.
5. Obtain Permits and Licenses
The majority of Virginia charities will not need any form of general business licence. You should check with your county or municipal clerk’s office to see if there are any county or city-level requirements.
6. Register/Renew Your Charitable Status
Charitable Virginia must register with the Virginia Department of Agriculture and Consumer Services before soliciting donations. To stay compliant, you must renew this registration each year.
To register, give the Virginia Department of Agriculture and Consumer Services the necessary documents:
Articles of Incorporation Form 102
Your most recent 990 Form
Your IRS letter of decision
A copy of every contract you have with experienced lawyers.
A list of your board of directors, officers, and chief executive officer
Please send copies of these papers to:
Virginia Department of Agriculture and Consumer Services Richmond, VA 23218-0526 P.O. Box 536
(804) 786-1343 for more information.
Website: http://www.vdacs.virginia.gov/
7. File an application with the Virginia Department of Taxation and the Virginia Employment Commission.
If your organisation intends to hire people, you must register with both the Virginia Department of Taxation and the Virginia Employment Commission. You may register for the employer withholding and unemployment insurance taxes with both institutions online.
Registration is simple and may be done online. You may also get in touch with your local employment commission.
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.