 |
Greater Knoxville Chapter
|
|
Starting a Non Profit Organization
Starting a non-profit can be a lengthy process; particularly
if you wish to solicit donations, apply for grants, and be tax exempt by applying
for 501(c)3 status with the Internal Revenue Service.
You may want to visit the articles in the "Library Non Profit"
section of this website. Here you will find at least
25 printable handouts that you should review. Download and study carefully the
comprehensive pamphlet, Business
Planning Tools for the Non-Profit Organizations found in the Strategic
Planning Section of the Non Profit Library.
Now you will understand and be more prepared to begin the process of organizing
your non-profit. Here are the necessary steps to achieve that end. You may wish
to review them & determine how many you have already completed
1) Formulate a mission statement.
2) Form a Board of Directors.
3) File articles of incorporation. Go to http://www.tn.gov/sos/forms/ss-4418.pdf
Fill out and remit the $100
4) Draft by-laws.
5) Develop a strategic plan. SCORE can assist through mentoring.
6) Develop a business plan.
Discuss with SCORE
Obtain the necessary software or template/models
7) Develop a budget.
8) Develop a record keeping system.
9) Research & settle on an accounting system.
10) File for 501(c)(3) status. If you will be organized and operated exclusively
for one or more of the following purposes: charitable, religious, educational,
scientific, literary, testing for public safety, fostering national or international
amateur sports competition, and prevention of cruelty to children and animals.
Obtain a copy of IRS Publication 557,"Tax Exempt Status for Your Organization".
Download for review a copy of IRS bulletin, Applying
for 501(c)(3) Tax Exempt Status at this web page http://www.irs.gov/pub/irs-pdf/p4220.pdf
Complete form 1023 found at http://www.irs.gov/pub/irs-pdf/f1023.pdf.
The cost will be $850.
11) Sales & Use Tax Certificate (Sales Tax Number) This is necessary if
you intend to sell any products.
Complete the Tennessee Department of Revenue Application for Registration
(RV-F1306901). You need to include a copy of your Tennessee and IRS Exemption
papers. This has to be renewed annually and the License/Permit has to be publicly
displayed.
Businesses selling retail are liable for collection and payment of Tennessee
Sales and Use Taxes. Contact the Tennessee Department of Revenue 531 Henley
Street, Knoxville, Tennessee 37902. Telephone: (865) 594-6100 to obtain your
Certificate. There is no cost. Application registration can be found on-line
at http://tn.gov/revenue/forms/general/f13005_1.pdf
Once you have this certificate, you will be able to purchase items used for
resale without paying sales tax. A blanket Certificate of Resale can be obtained
on line at http://www.tennessee.gov/revenue/forms/sales/f1300701.pdf
12) File for local tax exemption. No Business License will be required once
you have non-profit status. You need to contact the City & County Business
License office to confirm.
13) Fulfill charitable solicitation law requirements.
14) Obtain a Federal Employer Identification Number. You must obtain a Federal
Employer Identification Number (EIN) if you have one or more employees, or if
you operate as a trust, estate, corporation, partnership, or a similar non-individual
organization (whether you have employees or not). There is no cost to obtain
an EIN. You can apply on-line to get your EIN from the IRS at this web address:
http://www.irs.gov/businesses/small/article/0,,id=102767,00.html.
You will obtain it immediately upon completion of the validation. When filling
out the form the only punctuation and special characters allowed are hyphen
(-) and ampersand (&). (NOTE for LLC EIN applicants) The EIN process is
different and unique for a single member LLC in that you must obtain two EIN's.
However, beginning February 25, 2008, one or both can be obtained on-line in
the same session.
Should you wish to do so you can schedule an appointment at your convenience
to discuss all the aspects of your Vision. It can be at our office here in Knoxville
412 Cedar Bluff, Suite 450 Pinnacle Building or at a location more convenient
for you.
Source: Charles Christiansen, SCORE Counselor June 2011
The material in this publication is based on work supported
by the U.S. Small Business Administration under cooperative agreement SBAHG-04-S-0001.
Any opinions, findings and conclusions or recommendations expressed in this
publication are those of the author and do not necessarily reflect the views
of the U.S. Small Business Administration. The information contained in this
publication is believed to be accurate and authoritative but is not intended
to be relied on as legal, accounting, tax or other professional advice. You
should consult with a qualified professional advisor to discuss issues unique
to your business.
Copyright 1990. SBA retains an irrevocable, worldwide, nonexclusive,
royalty-free, unlimited license to use this copyrighted material.