The United Way, Habitat for Humanity, Teach for America and Amnesty International are just a few examples of non-profit, 501(c)(3) organizations. 501(c)(3) is a section of the federal tax code that exempts non-profit organizations from paying federal taxes.
Non-profit organizations are exempt from paying state taxes as well. Each state has its own procedure for determining whether an organization qualifies for a state tax exemption. The state of Indiana requires proper Internal Revenue Service documentation before an organization is granted exemption from state taxes.
Acquire an Employee Identification Number (EIN). Visit the How to Apply for an EIN page on the Internal Revenue (IRS) website (see Resources). Apply online for an EIN or apply by phone. You may also obtain an EIN by mailing or faxing Form SS-4A. Download Form SS-4A from the IRS website or get a copy from your local IRS office. The EIN is also known as the federal identification number. The IRS assigns this number to business entities as way of identifying a business.
Apply for tax-exempt status. Visit the Obtaining an Application for Tax-Exempt Status on the IRS website. Download a copy of Form 1023, Application for Recognition for Exemption or Package 1024, Application for Recognition Exemption. Complete the form that applies to your type of non-profit organization. Mail the form to:
Internal Revenue Service P.O. Box 12192 Covington, KY 41012-0192 877-829-5500 irs.gov
Successful completion of the application process establishes your company, organization or association as a federal tax exempt non-profit 501(c)(3) entity.
File for Indiana sales tax exemption. Visit the Indiana Department of Revenue website at www.in.gov/dor. Click Forms. Select Nonprofit from the list. Download the Nonprofit Application for Sales Tax Exemption (NP-20A). Fill out the application. Provide proof that your organization is exempt from federal taxes by attaching a copy of the federal determination letter. Mail the application to:
Indiana Department of Revenue Tax Administration/Support 100 N. Senate Ave. Room N201 MS105 Indianapolis, IN 46204 317-232-2045 in.gov/dor
Submit Articles of Incorporation. Visit the Secretary of State (SOS) website (see Resources). Select "Business Services Division" from the menu. Click "Forms." Choose "Corporations." Select "Articles of Incorporation 4162" under the "Non-profit (Domestic)" listing. Submit the completed Articles of Incorporations for a Nonprofit Corporation form to:
Todd Rokita Secretary of State Corporations Division 302 W. Washington St., Rm E018 Indianapolis, IN 46204 317-232-6576 in.gov/sos
The Articles of Incorporation details the purpose and structure of your organization. As of early 2010, the filing fee is $30.
Register your non-profit organization. Select "Business Services Division" from the SOS website. Click "Forms" and choose "Corporations." Click "File Online" under the "Non-profit (Domestic) Articles of Incorporation 4162" listing. Provide all requested information about your non-profit organization. Registration is $25 as of early 2010.
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