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SECTION 501c(3) TAX EXEMPTION APPLICATION
To be tax exempt under section 501c(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for charitable purposes as set forth under the Code and none of the earnings may inure to any private member or individual. Additionally, the organization may not attempt to influence legislation or participate in campaigns or against political candidates. Exempt purposes include charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competitions, and prevention of cruelty to children or animals. Upon approval from the IRS, donations to the organization are tax exempt. The organization becomes exempt from numerous tax obligations. The application which must be submitted is complex and must be prepared properly to insure that the IRS will approve the status request, thus the assistance of a professional is essential. Our firm can prepare the quick application for a fee of $250 plus the IRS User Fee. This fee includes consultations with our lawyer as well as drafting the application and assembling the required documentation in support.
ADDITIONAL INFORMATION ON NEW YORK NOT FOR PROFIT CORPORATIONS
1. You must state charitable purposes in the certificate of incorporation which meets the requirements of the IRS as per section 501c(3). As part of the incorporation process we will assist you with the preparation of the charitable purposes which meet IRS requirements
2. The charity must have a minimum of the 3 directors, and if more than three, then multiples of three.
3. If you actually going to be operating a church, then you must file under the Religious Corporation Law. We can assist you for the same fee set forth above.
4. INDEMNIFICATION AGREEMENTS – In order to qualify as a 501c(3) tax exempt organization, no individual, be that a director or a member, may take a private benefit from the charity. To insure that the directors of the charity can be legally reimbursed for the expenses incurred acting as a director for the charity, the charity must execute agreements with the directors which state that the charity is responsible for paying the directors for any expenses they incur working for the charity as well as stating that the charity agrees to pay for any legal costs the directors incur defending themselves if they are ever sued for actions taken on behalf of the charity to the extent allowed by the applicable laws. By executing such written agreements at the time the charity is incorporated the directors ensure that the IRS will not object to any reimbursements made to them. Indemnity provisions are especially important when a charity is trying to recruit people to act as directors – especially those holding assets. R. .Williams, P.C. can draft these agreements and insert the required provisions in all legal documents of the charity for a fee of $50. This fee includes one agreement for each of the initial directors.
NOT FOR PROFIT CORPORATION - ONLY $160, INCLUDES NEW YORK FILING FEE AND FILED IN 24 HOURS!!
If you are planning to set up a charitable, religious or educational institution or other type of entity in New York for which you seek designation as a 501c(3) tax exempt organization by the Internal Revenue Service (IRS), then you must incorporate as a not-for-profit corporation as part of a three step process. Associations, clubs and other entities can also set up as a not for profit even if they do not intent on applying to become a 501c(3) tax exempt organization. Please speak with our lawyer who can assist with all not-for-profit formation types.
1. Set up your Not-For-Profit Entity, so that you and the other members of the organization are not personally liable for the debts of the entity. Our fee to incorporate such an entity is only $160 with the regular service which includes all state filing fees, a consultation with the lawyer who will assist with drafting your charitable objects, the certificate of incorporation, filing receipt, organizational meeting minutes, and membership certificates with bylaws.
2. Register with the New York Office of the Attorney General, Charities Bureau, if your organisation plans to solicit donations in the State of New York. Registration is required before any solicitation can occur. We prepare the New York Registration Statement with the Attorney General for a fee of $150.
3. Apply for charitable status from the IRS. The application to the IRS is extremely detailed. The IRS now offers a quick filing system which means you can obtain your 501c3 exempt status with 1 month! If you qualify, our fee for the quick application is only $250 plus the IRS User Fee of $275. We can prepare the longform 501c3 application professionally and correctly for a fee of $495. The long form takes about 1 year for approval. Please see below our information discussing the 501c(3) application. Please review and call our offices if you have any questions.