Nonprofit Law Blog: “Just as a nonprofit organization should not blindly accept any applicant as a director, an applicant should not blindly accept a director position without some understanding of the organization and his or her responsibilities. Both parties should be evaluating each other in order to mutually decide if it is a good fit.”
Nonprofit Law Blog: “Satisfaction of one of the public support tests under Section 509(a) of the Internal Revenue Code is one way that an organization can qualify as a public charity rather than a private foundation. . . . There is an alternative and different “one-third support test” under Section 509(a)(2) for organizations seeking public charity status under this Section.”
One of the reasons I have formed over 2,600 Arizona companies since 2001 is my information “how to” articles on my website. I am happy to announce that I just revised my popular article called “How to Form an Arizona Nonprofit Corporation.” I updated the article to include the current fees to file an IRS Form 1023 and to reflect changes in Arizona nonprofit corporation law and federal tax-exempt organization laws. I added new text that explains why I think it is a big, big mistake for people to form do-it-yourself nonprofit corporations. There is much more to forming a nonprofit corporation than just submitting the three page fill in the blanks form Articles of Incorporation found on the Arizona Corporation Commission’s website.
I also just published a new article called “Arizona Nonprofit Corporation Formation Service,” which explains in detail the 24 services I perform and the 16 documents I prepare when I am hired to form an Arizona nonprofit corporation for $1,319. That is $62/lawyer prepared document. This guaranteed fixed fee includes the $75 Arizona Corporation Commission expedited filing fee, publication cost of $175, $72 for a corporate minute book with corporate seal, and the postage to mail the minute book to the corporation.
If you have questions about forming or operating an Arizona nonprofit corporation, please call me at at 602-906-4953, ext. 1. I don’t charge to answer questions over the phone about forming or operating Arizona nonprofits.
If you are ready to hire me to form your Arizona nonprofit, complete my online Nonprofit Corporation Incorporation Questionnaire. You may pay with a credit card or by check.
May 17, 2010, is the deadline for nonprofit corporations that are tax exempt organizations (other than churches) with less than $25,000 in income to file IRS form 990-N. A change in the law three years ago become effective on May 17th. See “Thousands of nonprofits may lose tax-exempt status” and “Thousands of non-profits could unwittingly lose tax status.”
See the article in the Nonprofit Law Blog called “The End of Small Nonprofits That Have Not Filed Form 990.”
I form a lot of Arizona nonprofit corporations. Some are tax exempt charities and some are not. A nonprofit corporation formed under Arizona law does not automatically qualify as a charity that is exempt from federal income tax. Nonprofit corporations that want to be tax exempt organizations must file an IRS form 1023 and receive approval from the IRS.
IRS form 1023 is not for the faint of heart. For those who want to prepare the form 1023 themselves rather than hire a professional, I recommend an excellent how-to book called “Prepare Your Own 501(c)(3) Application” by former IRS agent Sandy Deja. Sandy’s resume is impressive:
- She has worked with form 1023 almost daily since 1974
- She reviewed about three thousand exemption applications during her 12 years as an IRS Exempt Organizations Specialist
- She has prepared over one thousand forms 1023, and reviewed almost that many prepared by others since leaving the IRS
If you want a professional to assist in preparing IRS form 1023, call me, Arizona nonprofit and charitable organization attorney Richard Keyt at 602-906-4953, ext. 1 or call Richard C. Keyt, CPA, at 602-906-4963, ext. 3. We do not charge to answer questions about forming nonprofit corporations or applying for tax exempt status with the IRS. See my article called “Hire Us to Get an IRS Tax Exemption for a Charitable Organization.” We can prepare and file an IRS Form 1023 for a charity formed in any of the fifty states.
For more about nonprofits and charities go to my website called Nonprofit Corporations.