To maintain your 501(c)(3) Nonprofit Public Charity in good standing in Louisiana, follow this advice.
9 Steps to Keeping Your Nonprofit Legal
In order to keep a 501(c)(3) nonprofit company in Louisiana, 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
You must pay the Louisiana Franchise Tax.
Request permissions and licences
Register or renew your charitable registration with the Louisiana Department of Revenue.
Follow the Public Inspection Rules.
Table of Contents
1. Apply for a state tax exemption.
A. Exemption from state income taxes
When your organisation obtains its 501(c) decision letter from the IRS, submit a copy to the Department of Revenue to be exempt from paying state-level income taxes.
Revenue Department P.O. Box 201 Baton Rouge, LA 70821-0201
Phone: (225)-219-7462 or 1-855-307-3893, or visit the website at http://www.revenue.louisiana.gov/.
B. Exemption from state sales tax
Fill out form R-1048 and submit it to the following address to apply for a sales tax exemption:
Louisiana Department of Revenue Baton Rouge, LA 70821-3278 P.O. Box 3278
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 charity that has incorporated must have a registered agent with a Louisiana office location. If your registered agent or office address changes, you must submit Form SS984 with the Secretary of State to revise your Articles of Incorporation.
NOTE: If you operate in one of the counties listed below, you must submit your revisions online: Ascension, Bossier, Caddo, Calcasieu, East Baton Rouge, Jefferson, Lafayette, Livingston, Orleans, Ouachita, Rapides, St. Tammany, Tangipahoa, and Terrebonne.
Your company may be terminated if you fail to inform the Secretary of State of this change.
4. Submit Periodic Reports
All nonprofits in Louisiana are required to submit an annual report with the Secretary of State. Annual reports may be done online and must be filed by the anniversary date of the formation of your organisation.
Failure to submit the required reports may result in the termination of your company.
5. Comply with the Louisiana Franchise Tax
Unless the Louisiana Department of Revenue grants an exemption, every nonprofit operating in Louisiana will be obliged to pay a state Franchise Tax.
To find out whether your organisation is qualified for franchise tax exemptions, see the Louisiana State Legislature’s Statutes (RS 47:608). If you are qualified for an exemption, you must contact the Department of Revenue to obtain one:
Louisiana Department of Revenue Office Audit Division PO Box 66362 Baton Rouge, LA 70896-6362 Attn: ICFT Unit
Phone: (225) 219-2267
6. Obtain Permits and Licenses
The majority of NGOs in Louisiana will not need a state-level business licence. However, many Louisiana towns and counties have their own set of laws and regulations. To find out what your city/county requires, contact your local city hall.
7. Register/Renew Your Charitable Status
Charity NGOs in Louisiana are usually excluded from registering as a charitable organisation. If your charity employs a professional solicitor, you must register with the Louisiana Attorney General.
8. Sign up with the Louisiana Department of Revenue.
If your organisation intends to hire anybody, you must register with the Louisiana Department of Revenue to get an Employer Account. If you haven’t already done so, you may finish your registration on their website.
You must also register with the Louisiana Workforce Commission and open an Unemployment Tax Account. Registration is simple and may be done online. You may also find your local workforce commission’s contact information online.
9. 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.