For more information, you can call the Department of Revenue at (217) 782-8881 or visit them at their website. NOTE: There are no financial penalties associated with the late filing of Form 990-N. Illinois state filing information for tax-exempt organizations. To apply for recognition by the IRS of exempt status under IRC Section 501 (c) (3), you must use either Form 1023 or Form 1023-EZ. To ensure that your nonprofit is eligible to apply for 501c3, in the Articles of Incorporation you must explicitly state the following: In order to qualify for 501c3 status, the organizations purpose must explicitly be limited to one or more of the following: You must explicitly state what the assets of the organization will be used for, and what will happen to the assets if the organization is dissolved. You may reserve a name for up to 90 days by filing an Application for Reservation of Name (Form NFP 104.10). FOR ADDITIONAL INFORMATION: https://www.illinoisattorneygeneral.gov/charities The application fee is $600 as of 2021. This long and detailed form asks for lots of information about your organization, including its history, finances, organizational structure, governance policies, operations, activities, and more. For example, if your corporation was created on July 15 then your report would be due by July 1. Starting and Maintaining a Nonprofit in Illinois A Step-by-Step Guide DOWNLOAD: State-specific checklist for keeping up with your nonprofit's compliance (PDF) Here are the steps you must take to obtain your tax-exempt status. To legally establish your nonprofit corporation, you must create and file not-for-profit articles of incorporation with the Illinois Secretary of State's office. This could lead to losing your status and paying fines to the IRS. The bylaws do not need to be filed with the. Head over to the Illinois General Assembly's official guidelines for guidance on how to choose a name for your nonprofit in Illinois. The agent must have a physical street address in Illinois, not a post office box. Terms | Privacy | About Us | Community Rules. Example: Instead of signing your name only, state the name of the nonprofit and then your name and position within the organization before signing. You can also be your own registered agent. Section 5 of this sample IRS document provides an example of these provisions required for 501c3 eligibility. The EIN is required for your organization whether or not it will have any employees.To learn more, read our guide on how to get your EIN. Follow the naming guidelines to get started: The Illinois General Assembly's official guidelineshave more details for you to review on how to name an Illinois-based nonprofit. When choosing directors and officers for your nonprofit, you need to know. , and you may send the completed form back via phone, fax, mail, or online. To see if your proposed name is available, you can search Illinois's corporate name database on the Illinois Secretary of State's website. The provisions required for 501(c)(3) eligibility can be found in this sample IRS document. a statement of purpose that meets IRS requirements, statements that your nonprofit will not engage in activities unrelated to its exempt purposes or in prohibited political or legislative activity, and. Mail paper forms to the address below: Central Registration DivisionIllinois Department of RevenueP.O. The cost of a 501(c)(3) is approximately $600 as of 2021. SEARCH Toggle search Only logged-in users can post comments. See if your nonprofit has 501c3 status in Illinois. Appoint a registered agent. Nominating a Registered Agent by Mail. Organizations may apply for a grant from several community foundations through this program. Varies. This exemption is automatic and you do not need to file any paperwork. Do you need to be a US citizen to start a nonprofit? Much like a Social Security number, it is a 9-digit number assigned by the Internal Revenue Service that becomes permanently associated with your organization. Important Notice: Form changes occur periodically to implement new requirements. IRS - Information for Charities & Nonprofits, IRS - Required Provisions for Organizing Documents, IRS - 990 Series for Tax-Exempt Organizations, Form NFP 102.10: Articles of Incorporation, Illinois Secretary of State - Nonprofit Guide, Illinois Secretary of State - Online Services/Forms, Form REG-1: Illinois Business Registration Application, Illinois Attorney General - Charity Guidance, Illinois Charity Registration and Reporting Forms, Illinois Department of Employment Security, Illinois General Assembly - General Not For Profit Corporation Act of 1986, Illinois General Assembly - Compiled Nonprofit Statutes, Illinois Department of Revenue - Nonprofit Guidance, Illinois Woman-Owned Business Certification. JavaScript Required: This site uses JavaScript to display common navigation items. You can find more information on Form 1023 from the IRS website. ILLINOIS REQUIRES FILING: No It documents when and where the organization was developed and captures pertinent information to verify the nonprofits existence. Submit a copy of your Illinois articles of incorporation, nonprofit bylaws and your . Hold a meeting of your board of directors. Once a nonprofit corporation has been formed, the next step is to seek tax-exemption from the Internal Revenue Service, more commonly referred to as getting 501(c) status. Also check out our best nonprofit formation services review. There are 3,140 counties in the US. What is a Registered Agent? You will list your registered agent's name and contact details in Article 2. 501(c)(3)sdo not have to pay federal and state income tax. Must include the letters NFP at the end of the name if the name of your organization suggests that the organization was designed for any other purpose than laid out in the nonprofit act. To create a 501(c)(3) tax-exempt organization, first you need to form an Illinois not-for-profit corporation. FOUNDATION GROUP SERVICE: Yes, in specific service packages. What is a registered agent? Step 2: Follow the Nonprofit Naming Rules in Illinois. FOUNDATION GROUP SERVICE: No. We can't give legal advice in the comments, so if you have a question or need legal help, please go to Get Legal Help. See website. Allows you to give tax deductions to donors when they donate to your nonprofit. As a nonprofit in the state of Illinois, you also need to register your business with the Illinois Department of Revenue. When readers purchase services discussed on our site, we often earn affiliate commissions that support our work. To be eligible for 501c3 status, the assets of your organization must only ever be used for purposes approved under section 501c3. Step 1: Choose the Right Name for Your Nonprofit. Internal Revenue Service and residency requirements. However, if you plan on running a smaller organization or expect your nonprofits gross income to be under $50,000 over the next three years, you can fill out the form 1023-EZ instead. This abbreviated version of the application for exemption is an online-only form, available only to qualified, small organizations. Applications by nonprofit entities, like 501(c)(3) organizations, are first reviewed by the local county. What paperwork do you need to start a nonprofit in Illinois. Smaller nonprofits may be eligible to file Form 1023-EZ, Streamlined Application for Recognition of Exemption under Section 501(c)(3) of the Internal Revenue Code. We highly recommend that all organizations contact their County Clerks office to inquire as to any necessary filings. NOTE: While the state of Illinois provides a template (boilerplate) document for incorporation, be aware that the Illinois template does not meet Internal Revenue Service requirements for obtaining 501(c)(3) status. The purpose of the organization should be articulated in writing, as well. What is a Disqualified Person in a Nonprofit? In July of 2014, the IRS introduced Form 1023-EZ. https://www.irs.gov/forms-pubs/about-form-990 Certain organizations may use Form 1023-EZ instead of Form 1023. PT and weekends 7 a.m.-4 p.m. PT. Corporate Name You may not file your articles online. Springfield, IL 62756 217-782-6961 Mon.-Fri. 8 a.m.-4:30 p.m. Chicago office: 69 W. Washington St., Ste. The most recent financial statement (religious organizations do not need to submit a financial statement with the initial request). In other words, with your EIN, your organization is recognized as its own entity. FILING FEE: $15.00 Annual Filing Fee That said, ensure that you understand the IRS 501(c)(3) requirements and refer to the specific tax-exempt language required by the state of Illinois. Form 1023 is a comprehensive look at an organizations structure and programs. Page 7 - Lifecycle - Applying for Exemption Apply to the IRS for Tax-Exempt Status Form 1023 . The initial corporate meeting is the essential first step in forming a nonprofit organization. The primary use of the property must be for your organizations charitable purposes. You dont need to be a US citizen or resident in order to start a nonprofit corporation in the United States of America. Complete Form C0-1 with the Illinois Attorney Generals office Charitable Trust Bureau, Submit a list of the organizations directors and officers, Ensure that your personal assets are kept separate from your nonprofits assets, Prevent your nonprofit from avoiding penalties and tax errors, State the registered name of your nonprofit, State your position/role in the organization as its authorized representative, Youll need the following paperwork to get your, Starting a nonprofit without any money is not an option. You can find information at both the federal and state level to clarify such relationships. The president, secretary, and other members of nonprofit who have individual responsibilities and authorities are known as officers. However, if you plan on running a smaller organization or expect your nonprofits gross income to be under $50,000 over the next three years, you can fill out the form, Additionally, your nonprofit may acquire a. Here youll need to state the purpose of the organizations assets and the consequences of dissolved assets. To start an Illinois 501(c)(3) nonprofit organization, you'll need to first register a nonprofit corporation with the state of Illinois, and then apply for tax exempt status under section 501(c)(3) with the Internal Revenue Service. It could take anywhere from 1 to 6 months after filing before receiving a determination letter, also known as a tax-exempt status from the IRS. Lets take a closer look at them below: To open a bank account, you will need to provide: You may opt for General liability, Personal liability, or Workers compensation insurance. The filing fee is $10. Naming your Illinois nonprofit is easy. How to start a nonprofit in Illinois - 501c3 Organization: To form a nonprofit, you'll need to learn how to name, appoint a registered agent, select board members, and ultimately file your. While many do not require business licenses or other filings by nonprofits, some do. 2. A nonprofit or exempt organization in Illinois may qualify for nonprofit mailing privileges, such as discounted postage rates. Some well-known nonprofits in the state include Gift of Adoption Fund Inc., Critter Camp Exotic Pet Sanctuary, and The Chicago Coalition for the Homeless. Who is eligible to become a registered agent? Significant penalties, and even revocation of tax-exempt status, can result from failure to file a timely and accurate return. You'll need to prepare bylaws that comply with Illinois law and contain the rules and procedures your corporation will follow for holding meetings, electing officers and directors, and taking care of other corporate formalities required in Illinois. even if an organization has not yet received official 501(c) determination. This and the process of applying for a nonprofit organization discourages many people from starting nonprofits. Last Updated: June 28, 2023 by the TRUiC Team. An organizational meeting is the first official meeting of your nonprofit! To determine whether your organization is eligible to file Form 1023-EZ, check the Instructions for Form 1023-EZ. We research products, write reviews, and create in-depth guides and how-tos on topics like ideation, marketing, financing, accounting, and human resources. 2023Illinois Legal Aid Online. Check out our Business Name Generator. You can add the purpose clause in the blank space in Article 4. Please refresh the page and try again. Help us open opportunities for justice. FILING FEE: N/A A determination letter will be sent to you stating the outcome of the application for exemption from federal taxes. Many local, city, and county agencies also require a business license registration. Our unique, consultative approach will incorporate your nonprofit, secure 501 (c) (3) status and help you achieve long-term success. Even if you dont want to make one now, its a good idea to buy the URL. The organization structure of your nonprofit in Illinois MUST include: NOTE: The president and secretary positions cannot be held by the same person. Simply show them your 501(c)(3) certificate or tell them that you are 501(c)(3) compliant, and they will gladly make a public service announcement on your behalf. The forms should be downloaded to your computer before filling in the fields. Most nonprofits are 501(c)(3) corporations, which means they are formed for religious, charitable, scientific, literary, or educational purposes and are eligible for federal and state tax exemptions. FORM NAME: Charitable Organization Registration Statement Youll also need to apply for an employer identification number, federal and state tax exemption, register as a charity, and keep your nonprofit in line with annual compliance requirements. The name of your not-for-profit corporation must be distinguishable from the name of any business entity on file with the Illinois Secretary of State. Illinois does not require a copy of the bylaws to be filed with the state. You may obtain an EIN by completing an online application on the IRS website. Some not-for-profit corporations may qualify for an exemption from state sales taxes. NFP 115.20. That said, the IRS will look for a few introductory provisions when vetting your 501(c)(3) tax exemption application, so you must meet both the state of Illinois requirements and IRS requirements to avoid unnecessary amendments or your application declined. An EIN or Employment Identification Number (also called a Federal Tax Identification Number or Federal Employment Identification Number), is used to uniquely identify a business entity. FORM NAME: Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code Before a nonprofit can apply for 501(c)(3) status it must: Once these four conditions have been met your nonprofit can apply for 501(c)(3) tax-exempt status by filing Form-1023 online. In addition to initial registration, most states require charities to renew their registration on an annual basis. Is the URL available? If your application is approved, the IRS will send you a determination letter stating that your organization is exempt from federal taxes under section 501c3. Contact Us Springfield office: Corporations Division 501 S. Second St., 3rd Fl. F. State Income Tax-Exemption (Corporate Income Tax). Your nonprofits income will not affect this figure, and it is nonrefundable. It is a nine-digit number assigned by the IRS to identify your nonprofit or business entity. It is critical that the bylaws be drafted by someone with knowledge of both state and federal law governing the operation of a tax-exempt organization. Other than one official notice, the IRS will NOT send annual reminders that your Form 990 is due. The IRS will, however, revoke the tax-exempt status for organizations that fail to file any version of the Form 990 for 3 consecutive years. Contact Us Find Out How We Can Help You Start Your Nonprofit https://www.irs.gov Form SS-8 FORM NUMBER: Form 990, 990EZ, 990-N, 990PF, 990-T The filing fee is $25. There are two documents that will be central to the running of your nonprofit: Bylaws: These are the rules that determine how your organization will be governed and run. An Employer Identification Number is also referred to as a Federal Tax Identification Number or Federal Employer Identification Number. Below weve listed the costs of starting a 501(c)(3) in the state of Illinois: After youve started your nonprofit, there are a few necessary steps that you should take to keep your organization running smoothly. Once an organization has registered with the state Division of Charities, it may have to renew that registration annually. FORM NAME: Religious Organization Exemption Need a 501c3 application created? Web browsers don't support all the features of a fillable PDF form. Having recognition, and credibility for your nonprofit, Being exempt from IRS state income tax, federal, Illinois sales, payroll, and property taxes (more information can be found on the Illinois Department of Revenue website). Think of your registered agent as your business' point of contact with the state. To start an Illinois 501 (c) (3) nonprofit organization, you'll need to first register a nonprofit corporation with the state of Illinois, and then apply for tax exempt status under section 501 (c) (3) with the Internal Revenue Service. EIN stands for Employer Identification Number and is used as a Social Security number for your business. Is the name available for you to use? FOUNDATION GROUP SERVICE: No. Public charity A public charity, identified by the Internal Revenue Service (IRS) as "not a private foundation", must obtain at least 1/3 of its donated revenue from a fairly broad base of public support, i.e directly or indirectly, from the general public or from the government. Want to form a nonprofit elsewhere? Leagle: Every Illinois nonprofit corporation must have an agent for service of process in the state. . An official website of the United States Government. Applicants should complete and submit their signed and dated application along with the applicable user fee , which is $275 for organizations. Additionally, its a great way to show donors how your nonprofit has reached its goals. For more details, check out this EIN Lookup guide. Business Registration Forms. Copyright 1995-2023, Foundation Group, Inc. Start a Private Foundation SureStart PF, 501(c)(3) Recovery For Revoked 501(c)(3) Status, Charitable Solicitations (Fundraising) Registration, Assurance Membership Plan Bundle Annual Compliance Services, Trust Foundation Group to Help You Start Your Illinois Nonprofit, Starting and Maintaining a Nonprofit in Illinois, State-specific checklist for keeping up with your nonprofits compliance (PDF), https://www.cyberdriveillinois.com/publications, https://www.irs.gov/pub/irs-pdf/f1023.pdf, https://www.501c3.org/tag/unrelated-business-income, register with its Department of Charitable Solicitations, https://www.illinoisattorneygeneral.gov/charities, https://www2.illinois.gov/rev/research/publications, https://www.irs.gov/forms-pubs/about-form-990, https://www.irs.gov Independent Contractor (Self-Employed) or Employee. This status allows the organization to accept tax-deductible donations from individuals and businesses. Your feedback is the best way for us to improve our services. The articles of incorporation must include: The Illinois Secretary of State has a fillable not-for-profit articles of incorporation (Form NFP 102.10) on its website which you can use to form your not-for-profit Illinois corporation. The conflict of interest policy is the second document and is basically a collection of rules put in place to ensure that all decisions made ultimately benefit the nonprofit organization and not individual members personal agendas. FOUNDATION GROUP SERVICE: Yes, both as a component of Assurance, and a-la-carte. You can add the prohibited activities and dissolution clauses in Article 5, which is for "other provisions." The user fee for Form 1023 is $600. Get business advice delivered straight to your inbox! As we mentioned earlier, you may want to create a website for your organization to legitimize your business or give it more credibility. Before you can apply for 501c3 status, you need to create two documents for your nonprofit: What are your nonprofits bylaws? EINs are also sometimes referred to as a Federal Tax Identification Number (FTIN). It is at this meeting that the initial board of directors is installed and officer titles determined. Employers If the nonprofit organization has or may have employees and/or speakers/guests/independent contractors, there could be additional registration and reporting requirements at the federal and state level.

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