Setting up a Non-Profit organization in Rogers County is a goal of many places: churches, food pantries, and other welfare organizations. Charitable organizations and foundations are also a great tool for Estate Planning. In Oklahoma the process is fairly complicated but depends on what you’re trying to do. If you are considering forming a Non-Profit or a charitable foundation, this article will provide you with the basic beginning steps.
Charitable Foundations Estate Planning
Forming a charitable foundation in Rogers County is a wonderful tool for passing wealth.
Generally charitable foundations in Estate Planning are used by high asset individuals. Not only are you able to maintain some control of the money that you donate you’re also able to draw a reasonable salary while doing so. Other benefits involve tax savings, asset protection and the aspect of helping a charity of your choice. Once you choose the charity you want to support you’ll be required to donate a minimum percentage of the foundations assets each year. An example may be a University, Public organization or what ever cause that you like.
Setting Up a Non-Profit or 501c3
In a typical Non-Profit you will target a certain demographic or community need. It is important that you ensure you are not overlapping with another charity to fill this need. Otherwise, you could be setting yourself up for failure. You can check to see if there are current organizations working to fill this need by checking on the Oklahoma Secretary of State’s website.
Forming a Non-Profit Corporation
Non-Profit organizations in Oklahoma are set up similar to for-profit businesses. Therefore, you will need to go through the steps of setting up a Non-Profit “corporation”. These are:
- Choose the directors or incorporators for the Non-Profit. You must have at least 3 people minimum to begin. You will also provide the names and addresses of these people on your Certificate of Incorporation.
- Select a name for you Non-Profit. Make sure the name is not already in use by checking on the Secretary of State’s website. If it is available, then you must file a Name Reservation Request to hold the name for your use.
- Next you must prepare your Articles of Incorporation. This includes the name of your Non-Profit, a registered agent and the agent’s address, the length of time that you plan to operate the Non-Profit, Purpose and Mission statements, the number and names/addresses of the directors, plus the email of the Non-Profit. This document also requires that when setting up a Non-Profit you refrain from engaging in political or legislative lobbying and have a dissolution plan if you want to be exempt by IRS standards.
- Prepare the Bylaws for your Non-Profit. This gives you a protocol for how to deal with meetings, internal procedure, etc.
- Hold a meeting of the Board of Directors to approve setting up a Non-Profit and the required documents. This meeting will also allow you to approve a budget and financial protocol as well. Take minutes and file them.
- Begin a Corporate Records Binder. This is the file that will contain all of your reports, meeting minutes, and set up documents.
MORE QUESTIONS ON BUSINESS AFFAIRS? ASK ONE OF OUR CLAREMORE ATTORNEYS.
Getting Tax Exemptions for Setting up a Non-Profit
You must apply for tax exemptions from the IRS and the State of Oklahoma. So, first you will need to file a Form 1023 with the IRS. Next you will fill out a Form SS-4 to get an Employer Identification Number. When you get your IRS Determination Letter, it will tell you if your exemption status has been accepted or rejected. If accepted, file this in your Corporate Records Binder. Finally, file for your State exemptions by registering with the Oklahoma Tax Commission. Additionally, you must file a Form 13-16-A.
Claremore Attorneys Can Help
Our Claremore Estate Planning Attorneys can help you walk through this process in an efficient and streamlined way. Let us ensure you are filling out the proper forms and following the steps to a T. This way you will have no legal problems in the future after setting up a Non-Profit.
