Non-profit organization national fund registration requirement (part 1 - extension)

In most states, recruitment of charitable organizations by nonprofit organizations and other organizations (such as fund-raising activists, marketing contributors, etc.) must be submitted with a state charity. In most cases it is an application that requires charity's permission, permission, certificate or registration application. Usually, Secretary of State or Attorney General (or consumer protection or licensing department under one of these offices) will handle these charity registration applications. Once a charity is registered, most states require annual compliance in the form of registration renewals and annual financial reports. But in all provinces this and those with highly unusual laws with their own extension, exemption and exceptional provision which are part of state charity laws and regulations governing charity registration and renewal applications Is not necessary.

Extension of charity group registration

One of the charity association registration renewal and annual financial report application period is near us. Estimated 90% of all non-profit organizations necessary to make these submissions can not be done on time This article will focus on charitable registration extension. It is a timely topic when millions of charitable organizations, 501 (c) (3) tax exempt nonprofit organizations submit an extension of charity organizations submitted to charity groups. Add month to submit renewal of charity organization and other compliance application forms.

Nonprofit organization's defense

First, in the defense of non-profit organizations, many non-profit file extensions keep in mind that they confirm that all governance and due diligence requirements are met. Meeting the deadline for submission of these countries is usually done by the Internal Revenue Service (IRS) Form 990 ( Return of an organization exempted from income tax This is expected for most organizations to take four and a half months after the end of the fiscal year-end (ie, May 15 for organizations ending in fiscal year 31 December).

Why do we need more time

At first glance, some people think that it is enough for more than four months to prepare IRS Form 990, but another reality appears when you look closer. First of all, 990 is somewhat complicated, consisting of 12 pages and countless schedules are required according to the answers given in basic form. After 990 has been created, many accountants usually also need to audit the financial statements. Therefore, after the accountants and auditors complete the work, you may think that 990 is ready to submit. Think again.

For many organizations, 990 must be judged by internal audit and / or finance committee. Afterwards, the Audit Committee must submit a report or recommendation to all the committees. IRS. These steps take a lot of time to adjust the time and schedule. Suddenly, the deadline of the deadline for 4 months and a half looks like a short time, but it is very difficult to meet.

This leads directly to the needs of not-for-profit organizations that submit extension requests, as well as most IRS, as well as most provinces registered for charitable obligations. The IRS extension provides time to prepare Form 990, state extension requests take a lot of time to apply for charity registration renewal, and annual financial reporting (usually 990 copies of non-profit organizations) is also required .

Extension of IRS and Charity registration

Extension of IRS, form 8868 ( Application for extending extension period of excluded organization ), A simple two-page form that requires completing the first page for an automatic three-month extension and an additional (not automatic) first extension for a three month extension Complete the second page before expiration. The copying of this form, or approval of the IRS to extend it, is necessary in most states to support the first and second extension requests submitted to the state charity.

To apply for state charity registration extension, NHCT-4 in New Hampshire State ( Application for extension of deadline for annual report submission by charity organization ) And New Jersey Extended form CRI-400 This requires signature of officers and payment of annual registration fee at extension application. Other states such as Colorado and New Mexico require online filing but most states require an e-mail or fax extension request. Regardless of the forms and procedures required to submit the extension, the necessary information is more unified and usually very basic. In most states, you only submit an extension application with a copy of IRS form 8868 and the following information before the current registration expires.

- Name of the organization
- Employer identification number (EIN) and / or state registration number
- the amount of additional time requested
- A brief description of why expansion is required.

Regardless of state-specific requirements including the above information and a copy of IRS 8868 with all requests, it is a good habit. Regarding timing, we recommend that you usually register an extension number 15 to 30 days ago, but in most states you will accept e-mail, fax or online application by renewal or annual financial report deadline. It is also prudent to ask for confirmation of the new deadline if approval of extension request and extension are approved. In some countries mailing or e-mailing written approval, others can use this information online. Since some states have not done anything, following up them is prudent to make sure that extensions have been received and approved.

Extensions are not possible in Washington DC, Maine, Mississippi, Wisconsin. Arizona requires legal registration renewal and annual financial reporting by September and does not allow extension. Charity organizations can submit after the application period ending September 30 and can pay a late fee of $ 25. Kansas State does not require extension and late fee or penalty is not imposed to submit late. In states that are tired of applying for extension indefinitely, such as Pennsylvania and Washington, no longer need an extension application. Instead, they elected to positively give all non-profit organizations an automatic extension of Pennsylvania's 180-day extension and Washington's extended extension of 6 months and a half.

Procedure for Second The extension application for charity registration is almost same as the initial application, but some provinces require special procedures. For example, in Illinois, the second application must include a draft of the annual financial report on form AG990-IL ( Illinois State Charity Annual Report ), A draft of financial statements (balances and income), a copy of IRS form 8868, a renewal fee of $ 15. Just following the same procedure used for the first extension request in the State of Illinois may lead to a shortage notice that must be addressed before the first extension is over. In some states, including Florida, Minnesota, Tennessee, the second extension is not permitted.

Depending on the state requirements, the expansion process can be challenging

In the case of charitable organizations operating in multiple states, a wide variation of state requirements to claim expansion may make that process very difficult. For example, in Maryland, it is necessary to process the extension request with a copy of FAX or IRS form 8868, but if you do not list the date on part I of line 8868, line 1, the extension request may be delayed or rejected There is sex. In New York you can send an extension request by e-mail, but the organization name, charity station registration number, subject line must contain Federal Employer Identification Number (EIN). For example, Re: ABC Charity, NYS registration number 01 - 23 - 45, EIN 12 - 3456789 " .

The person responsible for maintaining the state requirements of several state charitable organizations thoroughly investigates the relevant state requirements to avoid delay and refusal and works with knowledgeable service companies,

Results when the extension request can not be appropriately filed and the file can not be written on time

It is fantasy for many nonprofit organizations to fulfill the charity deadline by 15th May, but the result of missing these deadlines is very real, especially if the extension application is not submitted properly and on time . The lost update deadline is the possibility of late fee, potential fine, PR worsening, damage to reputation, donor's loss to nonprofit / charity. In addition, the charity organization needs to be aware of the need to stop recruitment in the province where registration has been completed.

Because submitting extensions is not an option in all states, some states that extend the submission of annual financial reports are important because they do not allow extension of charity registration renewal (such as Arkansas) applications You can know exactly what you need. For example, Alaska does not approve charity registration renewal and extension of annual financial reporting and does not charge for late fee, Appeal has to be interrupted When registration is not valid.

The submission procedure is widely different, and if the mistake is minimal, there is a possibility of refusing the extension application. Some of these refusals lead to late fees and sometimes fine, some of which are legal and can not be abandoned. For example, in Illinois, a late fee of $ 100 is forced to be charged if an update or extension request is not made in time. Also, if renewal and annual financial reporting is not submitted before the end of all permitted extensions, some states will charge a late fee at the time the application was initially scheduled and automatically 150 dollars (25 dollars a month) If registration renewal or necessary annual report is not submitted before the expiration of all the extension.

Since the time, resources, and dollar costs to comply with the provincial charity registration laws are high, it is not possible to submit the extension request properly and on time, so please do not add these costs.