Sunday, February 27, 2011

Articles of Incorporation: Emphasize Your Tax-Exempt Status

While you are drafting your articles of incorporation, it is important for you to pland and consider inclusion of language which emphasizes the tax-exempt nature of your nonprofit organization.  In other words, down the road, before or after your charity gets going, you are likely going to want to solicit or accept charitable donations.  So, in order for the donations to be deductible for the donor, this means that you ultimately are going to be required to file a request with the I.R.S. for what is called nonprofit, tax-exempt 501(c)(3) status, (in addition to incorporating your charity with the your state's Secretary of State's Office).
Therefore, I would recommend that, (while drafting your articles of incorporation), you should go to the I.R.S. website to get the language that the I.R.S. requires for tax-exempt 501(c)(3) status and, assuming it applies, simply plug that language into your articles of incorporation!  Doesn't that make sense!?
Of course, if you were to forget this step now, then  later, before you apply to the I.R.S. for tax-exempt status, you could probably simply amend your articles and include the verbiage then.
Please also note that there are a number of internet articles dealing with each of these issues.  Hopefully, this blog will become a useful source for how to start a charity, too! 

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