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Setting up your not-for-profit organization

CPA Tim Hungerford discussed the steps to legitimately set up your not-for-profit organization Monday morning on News 8 at Sunrise.
CPA Tim Hungerford discussed the steps to legitimately set up your not-for-profit organization Monday morning on News 8 at Sunrise.

Hungerford detailed four steps. 

The first is to set up your not-for-profit corportation with New York State.  This will require by-laws which indicate the not-for-profits intent, a board of directors and a meeting to approve the documents.  The certificate of incorporation can be downloaded from the state website.  There is a $75 filing fee.

The second step is to file with the IRS to obtain an employer identification number.  This can be used to properly set up a bank account for the organization.

The third step is to file a 1023 or 1024 form with the IRS for not-for-profit tax exemption.  The fee is $200 if you file electronically, $850 if you file a paper copy.

The last step, once you receive approval from the IRS as tax exempt, is to file for the exemption with New York State using the CHAR1040 form if you will be soliciting contributions.  The fee is $25.

The whole process, according to Hungerford, can take between six months to two years depending upon whether you qualify correctly or need changes to the documents or by-laws.


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