The term non-profit organization is used frequently, but what does it mean? A non-profit organization qualifies for a tax exemption from the IRS when it’s operated for a public, social, or collective benefit as opposed to a business that generates profits for its owners. None of the profits from the entity are distributed amongst the board members; instead, the profits are meant to be used to further its cause. The IRS is not keen on forgoing taxes for a business, so they require ample paperwork to ensure that you are truly a non-profit organization. Rather than getting bogged down in the IRS requirements, contact the experts at ORT Consulting for assistance in setting up a non-profit organization.

What is Needed to Set Up a Non-profit Organization?

The IRS requires specific paperwork to be filed when starting a new non-profit organization. Some of these forms include your organization’s articles of incorporation, employer identification number, and much more. Keeping track of the paperwork for a new non-profit can be challenging. It is important to turn to a professional so that everything is filed properly from the beginning. Missing a form at the conception of your non-profit organization sets a bad tone for the remainder of the year and could result in your non-profit status being denied. ORT Consulting has extensive experience in filing start-up paperwork for non-profit organizations.

There is also paperwork to be filed annually to maintain your non-profit status. Misfiling your paperwork could lead to losing your non-profit status; a costly mistake come tax time. The most important form that needs to be submitted annually is Form 990 (Return of Organization Exempt from Income Tax) and its subsidiaries. To maintain your status, you must report your annual income statement, revenue support schedules, balance sheet, individual program expense statement, and functional expense statement.

The experts at ORT Consulting can assist your business in properly filing these forms each year. We will have your back so that you can rest assured that your organization will keep its tax-exempt status for years to come. Please call our office at (773) 637-8802 to speak with one of our representatives regarding a non-profit organization.