Next Steps for Nonprofit
1. After you receive your new EIN, fill out IRS Form 1023-EZ online. This will get you federal tax exemption when the IRS issues a Determination Letter of Exemption designating the organization’s 501(c)(3) status.
2. Register with the Attorney General’s Non-Profit Organization/Public Charities Division, more information can be found here: http://www.mass.gov/ago/doing-business- in-massachusetts/public-charities-or-not-for-profits/registering-a-public- charity/massachusetts-entity first-fiscal-year-not-yet-year-c.html
Here is a checklist:
If your organization wishes to conduct business in Massachusetts and has either registered as a Massachusetts corporation with the Massachusetts Secretary of State or is otherwise a Massachusetts-based charitable entity, AND your first FYE date is in the future, you must send in the following in order to register your organization to legally conduct business:
1. A completed Registration Form and Checklist
2. A copy of the organization's charter, articles of organization*, articles of incorporation, agreement of association, instrument of trust, or written statement of purpose, whichever is applicable;
3. A list of the current officers/directors and their addresses;
4. A copy of the organization's by-laws;
5. A copy of the IRS letter** designating the organization’s 501(c)(3) status, if the organization has received one;
6. Initial registration fee of $100, a check made payable to the “Commonwealth of Massachusetts”;
7. If the organization does not intend to solicit funds, it may send the first six required items in without any additional filings. It will be assigned an AG number and will be expected to file its “Form PC” four and one-half months after its fiscal year end. If the organization has solicited or it intends to solicit funds, or to have funds solicited on its behalf, then the organization must include the Schedule A-2; and
8. The Schedule A-2 filing fee of $50, a check made payable to the “Commonwealth of Massachusetts,” if Schedule A-2 is part of the registration package. This is in addition to, and separate from, the $100 registration fee. Neither the $50 filing fee, nor the Schedule A-2, is required if the organization does not intend to solicit.
*”Articles of organization" are not the same as by-laws; the two are separate documents. Also note that a "statement of purpose” is an official document explaining in detail the organization’s goals and practices.
**If the organization has applied for 501(c)(3) status but not yet received it, it is not necessary to send a copy of the IRS Form 1023. It is best to note the application in a cover letter and submit a copy of the determination letter when it is received. The IRS determination letter is not the same as the state sales tax exemption, DOR Form ST-2. We do not require a copy of the ST-
2. The information a charity provides to the Secretary of the Commonwealth’s Corporations Division (Corporation's Division) or the Internal Revenue Service (IRS) does not come to the AGO; the three are completely separate agencies with separate purposes and filing requirements.
Although you may be registered as a not-for-profit corporation with the Secretary of the Commonwealth and file annual reports, your status as a public charity requires separate registration and filing with the AGO. Any documents submitted to the Corporations Division or the IRS, such as the Annual Report, Articles of Organization or IRS Form 990, will not reach the AGO.
3. Register with the Massachusetts Department of Revenue in order to obtain exemption from certain state taxes, more information can be found here:
https://www.mass.gov/administrative-procedure/ap-101-exemptions-from-sales-tax. Application for Registration is done online through MassTaxConnect.
Each year, you must…
1. File some type of IRS Form 990
– This will most likely be Form 990-N.
– Must be filed electronically.
– Most small tax-exempt organizations whose annual gross receipts are normally $50,000 or less can satisfy their annual reporting requirement by electronically submitting Form 990-N.
– Due every year by the 15 th day of the 5 th month after the close of your tax year.
2. File an Annual Report with the Secretary of the Commonwealth, Corporations Division which is due on or before November 1 st of each year.
3. File form PC with the Commonwealth of Massachusetts which is due within four and one-half months of the conclusion of the charity’s fiscal year.