How Often Must You Renew a 501(c)(3)?

By Wayne Thomas

Running a nonprofit organization requires strict adherence to both state and federal laws. And if your organization pursues federal 501(c)(3) tax exempt status, you must go through a cumbersome application process with the Internal Revenue Service. However, once you have been approved, your organization does not need to renew its 501(c)(3) exemption.

Running a nonprofit organization requires strict adherence to both state and federal laws. And if your organization pursues federal 501(c)(3) tax exempt status, you must go through a cumbersome application process with the Internal Revenue Service. However, once you have been approved, your organization does not need to renew its 501(c)(3) exemption.

Filing Requirements

Although your organization's 501(c)(3) status does not need to be renewed through the IRS, there are other filing requirements that you must observe in order to continue to legally operate. Specifically, the IRS requires you to file an annual report outlining your yearly revenue and activities. You must also comply with any specific state reporting and registration requirements. Failure to do so could result in loss of the exemption and corporate status.

Ready to form a nonprofit? Get Started Now
Ready to form a nonprofit? Get Started Now
Can an Entertainment Company Be Non-Profit?

References

Related articles

How to Run Your Own 501(c)(3)

Running a 501(c)(3) tax exempt nonprofit requires you to adhere to both state and federal law. Tax exempt status is obtained through the Internal Revenue Service (IRS) and limited to only those nonprofits that further a specific charitable, scientific, educational or religious purpose. Although 501(c)(3) organizations enjoy relief from federal income taxes, your tax exempt status depends on whether your nonprofit follows specific reporting and record keeping requirements. Understanding how state and federal law affects the running of your 501(c)(3) organization will help ensure that your organization operates effectively.

What Is a 501(c)(3) Determination Letter?

The Internal Revenue Service sets down the tax rules for nonprofit corporations, including the charitable organizations formed under state law and in accordance with Section 501(c)(3) of the federal tax code. A 501(c)(3) should operate in the public interest or for charitable purposes and not for the profit of any individual or group. If the 501(c)(3) conforms with these requirements, it is tax-exempt. The IRS is the final arbiter on tax status, using determination letters to hand down its decisions.

The Requirements to Start a Non-Profit Business in South Carolina

Nonprofit businesses provide important services for communities, such as giving support to low-income families or raising awareness of important social issues. While you can do these things as an individual, organizing as a nonprofit allows others to help you operate your charity and encourages donations more effectively. Typically, South Carolina nonprofits are organized as nonprofit corporations.

Doing the right thing has never been easier.

Related articles

Forms for Applying for Non-Profit Status

Applying for nonprofit status operates according to state law. Following formation, your organization may then qualify ...

How to Create a 501C3 in California

Although a somewhat cumbersome process, properly registering your organization as a 501(c)(3) nonprofit allows it to ...

How to Start a Nonprofit Foundation

If you want to improve your community or meet a social need that no other local organization is pursuing, you might ...

How to Register a Nonprofit Organization in Iowa

An organization created for any lawful purpose other than generating profit may be registered as a nonprofit in Iowa. ...

Browse by category