Hello there - It sounds as though you are trying to start something
which offers a valuable service. I was on staff with the Los Angeles,
Orange County chapter of the Easter Seal Society for a few years
dealing mostly with the the national and the L.A. local telethons. So
I wish you the best in what you are attempting to do.
First of all, you can have a nonprofit which is not tax exempt.
Because of the red tape involved, maybe you would want to begin this
way. - "Not all non-profit corporations are tax-exempt. A non-profit
corporation may qualify for tax-exempt status for all or some of its
income, for either federal or state tax purposes, or for both.
Application for federal tax-exempt status must be made to the Internal
Revenue Service. Application for state tax exempt status must be made
to the North Carolina Department of Revenue."
The above quote is from: Publications Division of the North Carolina
Department of the Secretary of State
( http://216.239.51.100/search?q=cache:n1ZMJ0fsnxMC:www.secretary.state.nc.us/corporations/pdf/nonprof.pdf+establishment+rules+non-profit+corporations+north+carolina&hl=en&lr=lang_en&ie=UTF-8
) - See the note on this URL address at the end of the answer.
This website gives you a step by step guide and definitions required
to file as a nonprofit organization specific to the state of North
Carolina. You will find information covering everything from choosing
a corporate name to the audit process. Filing fees for each step of
the process are included.
The fee structure mentioned in this article are as follows -
Filing Articles of Incorporation - $60
Filing Certificate of Authority - $125
Depending on your fund raising activities and the amount raised, you
may need to file for fundraising activities permits. These have a
statutory limit of $200 - $400 for a parent organization filing on
behalf of its chapters. - - - - While from the above it seems as
though such corporate filings amount to under a thousand dollars, the
estimate of total cost must remain very rough. Much of the cost is
not under state control and will depend on your personal choices such
as attorney fees, cost of producing promotional material, and a lot of
other variables which only you can answer. I am not trying to cut you
short with such an answer, I just have no way of knowing what your
peripherals are unless you would like to explain them to me as a
clarification request to this answer.
For this part of your question: "And lastly, what is the average time
frame from contacting an attorney (I am sure one HAS to be
involved..they always are :) ) to when the tax-exempt status is
awarded." The answer is really up to you and just how fast you get
your attorney to file. - "The existence of the corporation dates from
the time at which the articles of incorporation are filed by the N.C.
Department of the Secretary of State. The staff of the Secretary of
State must examine the document and determine if it satisfies the
requirements of the North Carolina Non-Profit Corporation Act. If so,
it is promptly time-stamped and dated and a copy is certified and
returned to the customer." For the second part of that question
dealing with when tax exempt status is awarded, there are two
different paths which must be taken and an answer specific to a North
Carolina state time frame would not apply to the IRS. Under the
heading Federal Tax Exemption is simply: "Obtaining federal income tax
exemption for a non-profit corporation is a lengthy and complex
process." - also - "Whether a corporation has obtained federal
tax-exempt status is a relevant factor in the state's decision to also
grant exempt status. Thus, the federal application should be made
first."
The above quoted material is from: Publications Division of the North
Carolina Department of the Secretary of State
And as for that attorney, you do not have to have one. However, you
might want to take this little piece of advice to heart from the state
of North Carolina. - "A competent attorney should be able to ensure
that all of the essential details have been addressed. One of the
risks of not hiring an attorney is that saving a few hundred dollars
in fees may subsequently result in the loss of all of your personal
assets."
The above quote is from: Publications Division of the North Carolina
Department of the Secretary of State
The document above is PDF format. However, it is listed as a "not
found" document. So the URL I posted above is to an HTML version
which is a Google cache page.
If for some reason the posted URL does not take you to that page, in
the google search field type "establishment rules non-profit
corporations north carolina" and the link to the site is the first
listing on the page. Click on HTML version.
I'm afraid that some parts of the question must have rather nebulous
answers. There are just too many uncontrolled variables in how fast
or slow the IRS will work or what peripheral expenses you will
encounter.
In fact, some of the answer may lead to related questions in an
attempt to clarify. If these clarification requests deal with North
Carolina law and issues as your question specifies, please ask. If
they deal with the federal government or IRS related issues, there may
be need to ask them as 'new' questions since the research parameters
are quite different. The document I have pointed you to is the
official statement of the state of North Carolina on the establishment
of nonprofit corporations. You will also find a complete list of
state and federal contacts for the process.
Search - Google
Key words - nonprofit corporations, north carolina nonprofit legal
code, setting up nonprofits, and the now famous - establishment rules
non-profit corporations north carolina.
I would also suggest you follow the comments of mwalcoff-ga and
siliconsamurai-ga to check the Nolo Press information.
Good luck with your plans and if I can be of additional help, please
ask for clarifications.
Cheers
digsalot |
