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501(c)
(3) Legal Requirements
Questions
for Washington State University Extension Affiliated Nonprofit
Corporations
Nonprofit
corporations must comply with Federal and State regulations and
reporting requirements. Many of these are complex and change
frequently so it is important to understand the requirements
applicable to your organization and to stay current with the
changes. The following questions are designed to help you identify
areas that may need action on your part to ensure your Extension
Affiliated organization is in compliance. These questions are
not all inclusive and if you have additional questions or concerns,
you should consult the regulatory agency, attorney or tax advisor.
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Have
you obtained and reviewed the latest edition of the handbook "How
to Form and Maintain a Nonprofit Corporation in Washington
State". It is available on the Internet at http://www.kcba.org/YLD/publications.htm.
In addition see Title
24 RCW - Washington Nonprofit Corporations Act, for all
state requirements.
-
Do
you have the following documentation that Washington State
RCW 24.03.135 requires every corporation to keep at its registered
office?
- Current
Articles of Incorporation and Bylaws
- Record
of Membership including names, addresses and classes of membership,
if any
- Correct
and adequate records of financial activity
- List
of officer's and director's names and addresses
- Copies
of all minutes of board, membership or board committee meetings
- Are
your filings with the Corporations Division of the Secretary
of State current and accurate? Refer to http://www.secstate.wa.gov/corps/
- Duly
registered Articles of Incorporation, and all amendments.
Hint: The face of the documents will have the official
Secretary of State stamp.
- Nonprofit
Corporation Annual Report - due each year at the end
of the month your organization was incorporated.
- Change
in the corporate Registered Agent - Hint: Report new
agent's information on the nonprofit corporation annual
report to save additional $10 filing fee for reporting
information separately. Refer to RCW
24.03.055
- If
you are conducting charitable solicitations, are you registered
with the Secretary of State Charities Division and meeting
annual filing requirements? Refer to http://www.secstate.wa.gov/charities/
- Have
your Articles of Incorporation and Bylaws, and any amendments,
been filed with the Internal Revenue Service?
- Do
you have an IRS Determination Letter, or advance ruling,
establishing tax exempt status as a 501(c)(3) organization
in your files?
- Do
you have annual financial filing requirements with the Internal
Revenue Service?
For example, as of 2003, exempt organizations (not a private foundation)
having gross receipts in each tax year that normally are more than $25,000
file an IRS form 990.
- Additional
considerations for your board of directors:
Has the Board of Directors considered the need for Director's and Officer's
insurance? Is there a general indemnification clause in the Articles of
Incorporation?
- Do
you provide annual training to the officers of your nonprofit
including:
- Regulatory
filing requirements of the Corporation
- Overview
of IRS regulations for nonprofits: for example, restrictions
on lobbying and excess benefit transactions to persons having
substantial influence over the affairs of the organization
(e.g. board members), etc.
- Review
of the handbook "How to Form and Maintain a Nonprofit
Corporation in Washington State?" mentioned above, especially
the Table of Contents plus Part II, Section III and IV
- Review
of contracts or Memorandum of Agreement documents with WSU
and other partners
- Periodic
review of Articles of Incorporation and Bylaws
- Have
you considered storing copies of your vital organizational
documents in a centralized location to minimize loss from
periodic personnel changes within your organization? Hint:
Store these documents at your local WSU County Extension
Office
For
additional information and resources refer to http://ext.wsu.edu/admin/volunteer.html.
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