State tax framework for non-profits

Different states have different taxation systems and as such provide different kinds of exemption to non-profit organizations. In addition to the sales tax, many states offer exemption on corporate income taxes, excise taxes, franchisee taxes, property taxes and others. Detailed and updated information about state tax exemption can be obtained from the website of the […]

NPO Laws Related to Fundraising

Non-profit organizations are required to register with the state attorney general office and comply with the solicitation act for each state, where it raises funds. Registration is a MUST if fund raised by the organization (gross contribution) exceeds: Alabama $25000 Alaska $5000 Arizona $25000 Arkansas $10000 California $25000 Colorado $0.00 Connecticut $25000 Delaware not required […]

IRS laws applicable to NPOs

A non-profit organization is subject to provisions of several sections of the IRS code (title 26). Some common IRS sections relevant to non-profit organizations are: IRS Section Title Section 501 Exemption from tax on corporations, certain trusts, etc Section 503 Requirements for Exemption Section 507-509 Rules related to private foundations Section 511 Tax on unrelated […]

State laws related to forming NPO

Laws related to FORMING ASSOCIATIONS An unincorporated association is formed and regulated by the state’s Unincorporated Nonprofit Association Act (UNAA) in these 11 states: Alabama Arkansas Colorado Delaware District of Columbia Hawaii Idaho Texas West Virginia Wisconsin Wyoming Other 39 states have not yet adopted the UNAA.  A nonprofit association in the remaining  states is […]

Overall legal framework for non-profits

The legal frame for non-profit organization comprises of : State Laws: related to formation, fund raising, employment & volunteering, state-taxation Federal laws: related to employment & volunteering IRS Laws: related to taxation, tax exemption, governance and accountability Local/ County laws : related to leasing of office space and day to day operations. Click on the […]