The Peck Group, LC
  • Comprehensive Tax Law Representation Since 1995

    We handle every aspect of tax law: preparing tax returns, representing clients during audits, resolving IRS and state tax controversies, and creating tax planning strategies for the future.

  • Problems With The IRS Or State Tax

    Our attorneys are committed to providing efficient and effective tax solutions for individuals and businesses in Georgia and nationwide.

  • Planning For The Future

    Our lawyers help individuals and businesses with all aspects of estate and tax planning. We help our clients use proactive strategies to minimize tax implications in the future

  • Changing The Balance Of Power

    Does it feel like the government has all the power? Taxpayers have rights, too. We use our knowledge of tax law to shift the balance of power and ensure that your rights are protected.

  • Tax Solutions … And Peace Of Mind

How to get tax-exempt status for your nonprofit

If you’re starting up a nonprofit, you probably have questions. You may have heard that charitable organizations can receive tax-exempt status. However, this designation is not automatic. The IRS has fixed regulations on which organizations are eligible and what they must do to qualify.

In today’s post, we map out the steps necessary to making your nonprofit tax-exempt:

Determine your organization type.

Before you begin the application process, you need to establish whether you’re a corporation, association or trust.

Compile your supplementary documentation.

The type of organization you are will determine which type of application for recognition of exemption to submit. In almost all cases, you must enclose with your application a copy of your nonprofit’s organizing document, which is usually one of the following:

  • Corporation: articles of incorporation
  • LLC: articles of organization
  • Association: articles of association
  • Trust: trust declaration or agreement

Note that you do not need to submit an organization document if you qualify to submit application form 1023-EZ, which requires that your organization:

  • Has not earned more than $50,000 a year for the last three years (if it’s been around that long),
  • Anticipates earning less than $50,000 a year for the next three years and
  • Has less than $250,000 in total assets.

Understand local requirements.

Next, you must determine Georgia’s requirements for tax-exempt organizations, including how to register and relevant tax information.

Get an EIN.

Once your organization is legally formed, apply for an employer identification number (EIN). This is a federal tax number which the IRS will use to identify you.

If you encounter questions along the way, an experienced business and tax attorney can help walk you through the process and ensure that your organization is set up properly in the eyes of the IRS.

No Comments

Leave a comment
Comment Information
Email us for a Response

Talk to an Attorney

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

The Peck Group, LC
5855 Sandy Springs Circle N.E., Suite 190
Atlanta, GA 30328

Phone: 770-884-6914
Fax: 770-933-2369
Atlanta Office Location

Payment Cards