To maintain your 501(c)(3) Nonprofit Public Charity in good standing in New Hampshire, follow this advice.
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8 Ways to Keep Your Nonprofit Legal
In order to keep your 501(c)(3) nonprofit company in New Hampshire, 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 your charitable organisation with the state of New Hampshire. Assurance of Employment
Follow the Public Inspection Rules.
1. Apply for a state tax exemption.
Exemption from State Income Tax
Once you obtain your 501(c) decision letter from the IRS, your organisation will be immediately exempt from the New Hampshire Business Profit and Business Enterprise Tax.
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.”
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 New Hampshire office address. If your registered agent or office address changes, you must file Form 10 with the Secretary of State to revise your Articles of Agreement.
Your company may be terminated if you fail to inform the Secretary of State of this change.
4. Submit Periodic Reports
All nonprofits in New Hampshire are required by the Secretary of State to file a Business Compliance Report every five years (each year that ends with a 5 or 0). Annual reports may be submitted electronically using the NH QuickStart portal, along with a $25 cost.
Failure to submit the required reports may result in the termination of your company.
5. Obtain Permits and Licenses
Nonprofits in New Hampshire are not normally needed to get a state-level business licence or authorization. You should check with your city or county clerk to see if there are any local restrictions.
If your group intends to hold charity games of any type, such as bingo or raffles, you must get a gaming licence from the New Hampshire Racing and Charitable Gaming Commission.
6. Registration of Charities
Nonprofit charitable organisations in New Hampshire must register with the New Hampshire Department of Justice, Charitable Trusts Unit, using form NHCT-1. Every year, registered charities will be expected to submit an annual report.
7. Sign up for New Hampshire Employment Security.
If your organisation will have any form of workers, you must register with New Hampshire Employment Security.
Registration is simple and may be done online. You may also get in touch with your local employment security office.
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.