Follow this instructions to maintain your 501(c)(3) Nonprofit Public Charity in Wisconsin in good standing.
8 Ways to Keep Your Nonprofit Legal
In Wisconsin, a 501(c)(3) nonprofit company must be maintained.
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 Wisconsin Department of Workforce Development.
Follow the Public Inspection Rules.
1. Apply for a state tax exemption.
A. Exemption from state income taxes
Once you obtain the IRS 501(c) decision letter, your organisation will be immediately exempt from both income and franchise taxes.
B. Exemption from state sales tax
Fill out form S-103, Application for Wisconsin Sales and Use Tax Certificate of Exempt Status, to apply for a sales and use tax exemption (CES). This document must be sent with a copy of your Articles of Incorporation, bylaws, IRS decision letter, and a statement of your costs and revenue for the most recent accounting period.
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.
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 Wisconsin office location. If your registered agent or office address changes, you must submit Form 13 with the Department of Financial Institutions to revise your Articles of Incorporation.
Your company may be terminated if you fail to inform the Department of Financial Institutions of this change.
4. Submit Periodic Reports
Nonprofits in Wisconsin are required by the Wisconsin Department of Financial Institutions (WDFI) to produce an annual report, which is due each year by the conclusion of your anniversary quarter. The form is normally sent to your registered agent by the WDFI, but you may also get it online.
Failure to submit the required reports may result in the termination of your company.
5. Obtain Permits and Licenses
The majority of Wisconsin organisations will not need any form of general business licence. However, when applying for your Business Tax ID (using form BTR-101), you should obtain the following tax permits:
Permit for Seller
Wisconsin Withholding Tax Certificate of Use
Certificate of Consumer Use Tax
If your group wants to hold any kind of charity gaming, go to the Department of Administration’s website for further information about bingo permits.
You should also check with your county or municipal clerk’s office to see if any local licencing requirements exist.
6. Register/Renew Your Charitable Status
If your Wisconsin nonprofit intends to solicit donations or engage a professional solicitor to work on your behalf, you must register with the Department of Financial Institutions of the State of Wisconsin. Form 296 – Charitable Organization Registration Application, together with the accompanying papers, may be used to register.
Articles of Incorporation Bylaws IRS Determination Letter
Formal declaration outlining how you plan to spend the monies raised by your organisation.
You may submit these papers, together with your application form, to the following address:
P.O. Box 7876 Madison, WI 53707-7876 Department of Financial Institutions
7. Become a member of the Wisconsin Department of Workforce Development.
If your organisation will employ people, you must register with the Wisconsin Department of Workforce Development.
Registration is simple and may be done online. On the Job Center of Wisconsin website, you may also find contact information for 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.