Follow this instructions to maintain your West Virginia 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 West 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
Licenses and registration
Register or renew your charitable registration with Workforce West Virginia.
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 and franchise taxes. You must, however, complete form CNF-120 each year to keep your tax-free status.
B. Exemption from state sales tax
If your organisation qualifies, you may apply for a sales tax exemption, complete a Certificate of Exemption, and provide a copy to suppliers.
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 West Virginia office location. If you change your registered agent or their office address, you must submit Form AAO with the Secretary of State so that your Articles of Incorporation may be revised.
Your company may be terminated if you fail to inform the Secretary of State of this change.
4. Submit Periodic Reports
Each year, organisations must file an annual report to the West Virginia Secretary of State, which is due between January 1st and July 1st. The One Stop Business Portal allows you to prepare annual reports online.
Failure to submit the required reports may result in the termination of your company.
5. Registration and Permits
You must register with the West Virginia State Tax Department for your state-level tax accounts if you have not previously done so (business registration). You may fill out the unified tax application form online or by mail.
Aside from registering for corporate tax accounts, organisations will only need to seek a specific licence if they want to organise any kind of charity gaming (raffles, bingo, etc.). These permits are also available through the West Virginia State Tax Department. On their website, you may get the necessary registration forms.
6. Register/Renew Your Charitable Status
Unless exempt, charitable West Virginia NGOs are usually required to register with the Secretary of State’s Charities Division. Simply complete out form CHR-1 and submit it in with the proper registration money to register. Your registration must be renewed annually.
7. Sign up for Workforce West Virginia.
If your organisation will employ people, you must register with Workforce West Virginia.
You may get registration forms online or get in touch with your local workforce 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.