To maintain your 501(c)(3) Nonprofit Public Charity in good standing in Idaho, follow this advice.
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8 Ways to Keep Your Nonprofit Legal
In order to keep a 501(c)(3) nonprofit company in Idaho, you must:
Apply for State Tax Exemption
Tax-Exempt Organizations Must File Annual Federal Returns
Keep a Registered Agent on file.
Submit Periodic Reports
Request Permits and Licenses
Register/Renew Your Charitable Organization
Employees
Follow the Public Inspection Rules.
1. Apply for a state tax exemption.
A. Exemption from State Income Tax
Your organisation will be immediately exempt from corporation income taxes after you obtain your 501(c) decision letter from the IRS.
B. Exemption from state sales tax
Most NGOs in Idaho are not exempt from paying sales tax. Visit the Idaho State Tax Commission’s website to discover more about how sales tax affects different charity organisations.
2. Tax-exempt Organizations’ Annual Federal Returns
A. Federal Income Tax 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)
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 on file.
Any incorporated nonprofit must have a registered agent with an office location in Idaho. If you change your registered agent or their office address, you must submit a Statement of Change form 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
The Idaho Secretary of State requires nonprofits to file an annual report, which is due each year by the last day of the anniversary month of your organisation. You may submit your yearly report online by visiting the Secretary of State’s website.
Failure to submit the required reports may result in the termination of your company.
5. Request Permits and Licenses
Nonprofit organisations in Idaho are not needed to get a state-level business licence. Check with your city/county clerk to see if there are any local restrictions you must follow.
Whether your group intends to offer charity gaming (bingo, raffles, etc.), check the Idaho Lottery’s website to see if a gaming licence of any type is necessary.
6. Register/Renew Your Charitable Organization
Before soliciting charitable donations, Idaho charities are not needed to register with the Attorney General.
7. Employees
If your organisation intends to hire people, you must register with the Idaho State Tax Commission and the Idaho Department of Labor.
Registration is simple and may be done online. Contact information for the Idaho State Tax Commission and the Idaho Department of Labor is also available.
8. Follow the 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.