Establishing a 501(c)3 Sabrina Campbell Treasurer American Association of Blacks in Energy December 2009

Getting Started 1.Apply for EIN an Employee Identification Number 2.File Articles of Incorporation in your Chapter’s State 3.Have By-laws to Attach to IRS Filing 4.File IRS Form 1023, Application for Recognition of Exemption 5.Include Filing Fee (assessed on a sliding scale See Slide _)

Power of Attorney Declaration  Must File Form 2848 with application  Authorizes individual designated to among other things, receive taxpayer information  Power of Attorney designation can be given to an Officer of the Chapter  This power of attorney authorizes someone to talk to the IRS on the Chapter’s behalf

EIN Why Where EIN also referred to as the federal ID number EIN used as IRS identifier An EIN is needed to apply for tax exemption status Use IRS form SS-4 to file Once EIN obtained goes on page 1 of Form 1023 Application Obtain Form at: Obtain form instructions at: ftp.irs.gov/pub/irs-pdf/iss4.pdf

Articles of Incorporation If need to prepare can look to IRS Publication 557 for guidance What is it: a legal document that describes your organization What your organization is viewed as is governed by the laws of your particular State Why you want to qualify as nonprofit under State law Exempts Chapter from certain other taxes under State law

Checklist before Filing Checklist before Filing  Do advance work on documentation  Ensure your Mailing/P.O. Box Address for the Chapter is in order  Must have funds to pay the application fee  Be prepared to wait The Filing Fee  Based on a sliding scale must be made payable to the United States Treasury  If Chapter gross receipts exceed $10,000 per year, over a 4 yr. period fee is $750  If Chapter gross receipts are less than $10,000 per year, over a 4 yr. period fee is $300.

Checklist before Filing Assemble application in following order Checklist before Filing Assemble application in following order  Form 1023  Form 2848