Please choose from the following
commonly asked questions.
I want to start a nonprofit organization.
What steps do I need to take to get my nonprofit agency started?
- Contact the IRS at 1-800-829-3676 or visit the IRS District office
at 1100 Commerce Street for IRS Publication 557, Form 1023, Form ss-4
and Form 8718. Publication 557 explains the process which you must follow
to complete Form 1023 for the IRS to review prior to their issuing a
determination letter. Funders and others may ask to see a copy of your
determination letter as proof that you are a “qualified”
nonprofit organization.
- The Center for Nonprofit Management offers a class for those individuals
who need guidance and direction in establishing a legally recognized
nonprofit agency. 'To Be or Not To Be a 501(c)(3) covers the purpose
and character of a nonprofit organization, myriad of IRS forms, board
questions, legal issues, and other relevant topics. The class is offered
on a monthly basis from 9 a.m. to noon. The cost for the course is $55
per person. For more information, click here
to review current class offerings and register now.
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Where can I obtain the nonprofit
start-up forms?
All of the nonprofit start-up forms can be obtained by calling the IRS
at 1-800-829-3676, or logging on to their website at http://www.irs.gov/bus_info/eo/index.html.
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Where do I file my articles of
incorporation?
The Articles of Incorporation are filed with the Secretary of State's office in Austin. A filing fee of $25.00 is required. They may be contacted at (512) 463-5586. More information may be found by clicking the following link: http://www.sos.state.tx.us/corp/nonprofit_org.shtml.
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Are there costs involved in filing the 501(c)(3)
paperwork with the IRS?
The maximum amount one will pay for filing is $550.
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Is it necessary to hire an attorney
when applying for a 501(c)(3)?
It is always wise to consult with an attorney familiar with nonprofit
law to assist you in drafting your articles of incorporation and by-laws
for your organization, as well as the completion of IRS forms 1023. Technical
assistance in completing form 1023 is also available from the IRS by calling
214-767-0009, or toll free at 1-877-829-5500. Please leave a message and
someone with expertise will return your call within 2 days.
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How do I apply for exempt status
from the limited sales, excise and use tax?
An organization must write to the Comptroller’s office asking for
exempt status. There is no application form. The written request must
be accompanied by the following information:
- A detailed description of the activities conducted;
- A copy of the articles of incorporation, if the organization is a
corporation;
- A copy of the organization’s by-laws, if the organization is
not a corporation;
- Any other information requested by the Comptroller including, but
not limited to, all services performed for the organization, and all
income, assets, and liabilities of the organization; and/or
- A copy of the letter from the US Internal Revenue Service granting
the organization an exemption under sections 501(c)(3), (4), (8), (10)
or (19) of the IRS.
Address the request to:
Tax Policy Division, Exempt Organizations Section, Texas Comptroller
of Public Accounts, PO Box 13528, Austin, TX 78711-3528. The Comptroller
will send written notification of a decision on its request for exempt
status.For more information on Texas state tax exemptions for nonprofit
organizations, visit http://www.window.state.tx.us/taxinfo/taxpubs/tx96_122.html.
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Is there an agency like the Center
in another part of the Country?
The Alliance for Nonprofit Management – Resource for and listing
of management support organizations (MSOs), individual professionals and
a range of national/regional, umbrella, research and academic, publishing
and philanthropic organizations that provide technical assistance (training
and consulting) to nonprofits.
In another area in Texas?
Texas Nonprofit Management Assistance Network - a network of centers
and organizations, strategically located throughout Texas, that delivers
quality management support services and resources to the nonprofit sector.
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How many nonprofits are registered
in the State of Texas?
The Texas nonprofit sector is the 3rd largest in the US according to data from the National Center for Charitable Statistics. The following statistics are for 2006.
There are 20,507 reporting 501(c)3 charitable nonprofits in Texas, which include operating, supporting, and mutual benefit organizations with more than $25,000 in gross receipts. The number does not include religious organizations, as they are not required to file an IRS Form 990.
From 1996 to 2006, the number of reporting charitable nonprofits grew by 70%, from 12,071 to 20,507.
Reporting charitable nonprofits in Texas had over $114 billion in assets and almost $55 billion in expenses.
32% of Texas reporting nonprofits are located in the Dallas / Ft. Worth PMSA
Nonprofits in our region generate:
- Revenue - $15.6 Billion
- Assets - $32.4 Billion
- Expenditures - $12.9 Billion
- Employment – 94,214*
*Johns Hopkins Nonprofit Employment Data Project 2007
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What is a Form 990?
Just as individuals and corporations must file annual "tax returns,"
nonprofits must file annual "information returns." (Churches,
government agencies, individuals, and businesses need not file Form 990.)
Federal Form 990 ("Return of Organizations Exempt from Income Tax")
and Form 990EZ compile financial information, program activities, names
of board members, and other basic information. Form 990EZ is a shortened
version of Form 990 for smaller organizations. Visit http://www.irs.gov/pub/irs-fill/f990-ezb.pdf
to download the form.
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Should I hire a CPA?
Hiring an accountant can assist your organization in a number of ways,
from helping to set up accounting systems to developing a budget and system
for your monthly review of budget vs. actual results. More information
about hiring a CPA and about accounting and financial matters in general
can be found at: http://www.managementhelp.org/np_progs/fnc_mod/fnance.htm.
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How do I set up a Board of Directors?
The first step in setting up your board is to recruit board members.
Every year the Center hosts a “Get on Board” Fair, where individuals
interested in joining a nonprofit board can visit with over 80 local nonprofits
represented. Contact the Center for more information about the “Get
on Board” Fair. Additional information regarding setting up and
maintaining your Board can be found at: http://www.mapnp.org/library/boards/boards.htm#anchor585925.
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How do I recruit staff?
Opportunity 501 is a nonprofit job listing for Texas published by the Center for Nonprofit Management. Postings are listed in an online job bank, as well as in a print edition mailed to 2,500 nonprofits, career centers and universities. To review current postings, click here. Rates start at just $80 and include both an online and print listing. Ads can also be posted within 24 hours for immediate exposure. For more information on posting a job, click here.
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Foundation Start-up Web sites
http://www.nonprofits.org/npofaq/19/01.html
http://fdncenter.org/learn/faqs/start_foundation.html
http://www.cof.org/starting/index.htm
http://www.genie.org
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