Follow these procedures to establish a charity in New York and get 501(c)(3) status:
To establish a 501(c)(3) tax-exempt nonprofit organisation in New York, you must first establish a nonprofit in the state and then apply to the IRS for 501(c)(3) status.
The first and most crucial step in establishing your nonprofit company is deciding on a name. Make sure your name meets New York naming regulations and is readily searchable by prospective members and contributors.
Observe the naming guidelines:
More information regarding naming a charity in New York may be found in the official rules of the New York State Senate.
2. Does the name exist in New York? Make sure the name you choose isn’t already in use by doing a company entity search on the website of the New York State Division of Corporations.
3. Is the URL accessible? We propose that you investigate if your company’s name is accessible as a web domain. Even if you don’t intend to create a company website right away, you may wish to purchase the URL to prevent others from doing so.
By default, the Secretary of State in New York serves as the statutory agent for service of process (registered agent) for all New York organisations.
You may also designate a registered agent for your New York organisation. When you finish your company’s formation paperwork, you will be offered this choice.
What exactly is a Registered Agent? A registered agent is a person or corporate organisation that accepts vital legal papers on your behalf. Consider your registered agent to be your company’s point of contact with the state.
Who is eligible to be a Registered Agent? A registered agent must be a New York resident or a company, such as a registered agent service, that is permitted to do business in New York. You may choose someone from your organisation, even yourself.
Before starting, you must decide on the corporate structure for your firm and secure any necessary permissions. You must choose one of the following options:
A board of directors is made up of an organization’s directors. This board of directors is in charge of managing the nonprofit’s activities.
Officers are the president, secretary, and other members of a nonprofit who have specific roles and authority.
Your nonprofit in New York MUST have the following organisational structure:
Your organisation must have the following two papers in order to apply for 501(c)(3) status:
What is the definition of a Conflict of Interest Policy? A Conflict of Interest Policy is a set of guidelines put in place to guarantee that any decisions made by the board of directors or officials benefit the organisation rather than individual members.
You must submit the Certificate of Incorporation with the State of New York to register your nonprofit.
To guarantee that your organisation is qualified to qualify for 501(c)(3) status, you must expressly say the following in the Certificate of Incorporation:
1. Function:
To be eligible for 501(c)(3) status, the organization’s purpose must be expressly confined to one or more of the following:
You must indicate exactly what the organization’s assets will be used for and what will happen to the assets if the organisation is disbanded.
To be qualified for 501(c)(3) status, your organization’s assets must only be utilised for purposes authorised by Section 501(c) (3).
Section 5 of this sample IRS filing offers an illustration of these 501(c)(3) eligibility conditions.
What exactly is an EIN? The Employer Identification Number (EIN), also known as the Federal Tax Identification Number (FTIN), is used to identify a commercial organisation, such as your nonprofit company. It is basically your company’s social security number.
Why do I need an EIN? An EIN is necessary for the following activities:
If your application is granted, the IRS will issue you a letter confirming that your organisation is tax-exempt under Section 501(c) (3).
Start Chat