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.

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
How to Reinstate Nonprofit Status
 

References

Related articles

Can an Entertainment Company Be Non-Profit?

The formation of a nonprofit organization is governed by state law. To take full advantage of beneficial tax treatment at both the state and federal levels, however, a nonprofit needs to go beyond being organized for a reason other than pursuing profits. Whether an entertainment company meets these strict requirements depends on the type of work performed by your organization and who benefits from it.

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 benefit from tax-deductible donations and exemption from certain state and federal taxes. Nonprofits are initially formed at the state level, while the Internal Revenue Service regulates 501(c)(3), or exempt, organizations. As such, a nonprofit must pursue both state and federal registration in order to receive the most benefits.

How to Start a 501C3 Nonprofit Ministry

Charity work is often part of a church's activities -- and some churches may choose to expand their charitable work by forming an independent nonprofit ministry. A 501(c)(3) organization is a nonprofit entity formed under state law and granted tax-exempt status by the IRS under section 501(c)(3) of the Internal Revenue Code. To qualify for exemption from federal income tax under IRC section 501(c)(3), your ministry must operate and organize exclusively for religious, educational, scientific or other charitable purposes.

Doing the right thing has never been easier.

Related articles

501(c)(3) Incorporation Laws

Nonprofit organizations that can claim federal income tax exemption under section 501(c)(3) of the Internal revenue ...

How Can a Nonprofit Change Its Name?

A nonprofit is organized under state law as either a corporation or an unincorporated association. A corporation, the ...

How to Relocate a Non-Profit to Another State

A nonprofit organization is a type of business entity that operates for charitable or educational purposes and does not ...

Requirements to Maintain 501C3 Status

More than 100 501(c)(3) organizations lose their exempt status every year, according to the Nonprofit Risk Management ...

Browse by category
Ready to Begin? GET STARTED