Duane Reyhl, CPA

Nonprofit Organization Resources

The following links are some of the resources I find useful as a nonprofit board member, officer, accountant, and auditor of nonprofit organizations. For convenience, some links are listed in more than one category.


Nonprofit Industry Organizations
Publications and News
Regulatory and Tax Information
Resources - General
Resources - Boards of Directors
Starting a Nonprofit Organization
Miscellaneous


   
Nonprofit Industry Organizations    
American Society of Association Executives (ASAE)
   
Michigan Nonprofit Association
   
Minnesota Council of Nonprofits
   
National Council of Nonprofit Organizations: Nonprofit Resource Links
   
Society for NPOs
   
     
Publications and News    
The NonProfit Times (business publication for nonprofit management)    
Stanford Social Innovation Review (research-based articles that link theory, research, and practice)    
The Nonprofit Quarterly (magazine focusing on nonprofit management)    
Philanthropy News Digest (weekly news service of philanthropy-related articles and features)
   
     
Regulatory and Tax Information    
Michigan - DLEG - Business services (information and forms for nonprofit organization filings)    
Michigan: Act 157 of 1976 - Uniform Management of Institutional Funds Act
   
Michigan: Procedures and Requirements for Michigan Charities    
Michigan Attorney General: Charities
   
Michigan Attorney General: Procedures and Requirements for Starting a NPO
   
Michigan Attorney General: Initial Charitable Trust / Charitable Solicitation Questionnaire    
Michigan Attorney General: Application for License to Solicit Donations    
Michigan Dept of Treasury: Sales and Use tax Exemptions and Requirements    
Michigan Dept of Treasury: Michigan Sales and Use Tax Certificate of Exemption    
IRS: Life Cycle of a Public Charity 
Other Life Cycles: Social Welfare Organizations | Labor Organizations | Trade Associations | Agricultural Associations
   
IRS: Tax-Exempt Status of Your Organization (Publication 557 - rules and procedures for organizations that seek recognition of exemption from federal income tax)    
IRS: Rebuttable Presumptions for Intermediate Sanctions
   
IRS: Application for Recognition of Exemption  Form 1023 (June 2006)  Instructions
   
IRS: Tax Information for Charities & Other Non-Profits
   
IRS: Frequently Asked Questions about Tax-Exempt Organizations    
     
Resources - General    
GuideStar    
Nonprofit GENIE FAQs (CompassPoint)
   
National Center for Charitable Statistics (NCCS)
   
Fundraising and Administrative Cost Study (NCCS)    
Nonprofit Good Practice Guide
   
Nonprofit Hub  (basics on starting a nonprofit organization and a good dictionary of nonprofit terms)
   
Nonprofit Resource Center
   
Free Management Library for FPOs and NPOs    
NPO guides - grant-writing tools for NPOs    
Michigan's Nonprofit Sector - michiganinbrief.org    
Give.org    
freeErisa.com (Database of Forms 5500)    
CompassPoint Nonprofit Services    
     
Resources - Boards of Directors    
BoardSource: Building Effective Nonprofit Boards
   
Board Café: Newsletter for Nonprofit Boards (CompassPoint)
   
     
Starting a Nonprofit Organization    
Basic Steps    
Step 1: Define your nonprofit purpose.
   
Step 2: Visit the State of Michigan Department of Labor and Economic Growth ((DLEG) Domestic Nonprofit Corporations page for general requirements for forming a nonprofit organization
   
Step 3: File articles of incorporation (Michigan). (Form 502, Articles of Incorporation)

IRS Required provisions for articles of incorporation
Michigan requirements for articles of incorporation
IRS Sample Articles of Organization
Michigan: Common Problems with filing Articles of Incorporation
Michigan DLEG Corporation Division publications

   

Step 4: Prepare corporate bylaws

IRS By-Laws Requirements
 

   
Step 5: Apply for a Federal Tax Identification Number (also known as an EIN Number).
   
Step 6: File Michigan Attorney General Initial Charitable Trust / Charitable Solicitation Questionnaire, if necessary.
   
Step 7: File Michigan Attorney General Application for License to Solicit Donations, if required.
   
Step 8: File IRS Application for Recognition of Exemption (Form 1023 and Instructions), if desired.
   
Related resources:    
Michigan Department of labor and Economic Growth (DLEG) - Corporation Division    
How to Start a 501(c)(3) Nonprofit (Michigan Nonprofit Association)    
Procedures and Requirements for Starting NPO (Michigan Attorney General)    
Starting a Nonprofit Organization (Free Management Library)    
Tax Information for Charities & Other Non-Profits (IRS)    
Life Cycle of a Public Charity (IRS)    
     
Miscellaneous    

Nonprofit Overview:: A nonprofit organization in Michigan generally starts with the formation of a nonprofit corporation.  If a nonprofit organization also wishes to receive tax deductible charitable contributions from others, IRS Form 1023, "Application for Recognition of Tax Exempt Status" will also be prepared and approved by the IRS.

What's the difference between a nonprofit organization and a tax-exempt organization? An organization's nonprofit status is governed by state law while its tax-exempt status is governed by federal law.

Are there different types of tax-exempt organizations?  Yes.  501(c)(3) organizations (charitable, religious, and educational organizations) comprise the most common type.  Others types include 501(c)(4) Civic leagues and social welfare organizations; 501(c)(5) labor/agricultural/horticultural organizations; 501(c)(6) business and professional leagues; 501(c)(7) social and recreational clubs; 501(c)(8) fraternal beneficiary societies; and 501(c)(19) veterans organizations.

What are the allowable purposes under which a 501(c)(3) entity may be formed?

  • Charitable
  • Educational
  • Religious
  • Scientific
  • Literary
  • Testing for public safety
  • Fostering national or international (i.e., not local) amateur sports competition
  • Preventing cruelty to children or animal

What IRS tests must an organization meet for 501(c)(3) status:

  1. Organizational test:
  • Limit its purposes to one or more of the exempt purposes listed in Code section 501(c)(3)
  • Not engage in a nonexempt activity. In addition, assets of the organization must be permanently dedicated to an exempt purpose.
  1. Operational test:
  • Organization must show that it will engage primarily in activities that further its exempt purposes.
   
     
Notice: The information on this page and within the referenced links are for general information purposes only and does not constitute professional advice.  Because of the unique nature and diversity of nonprofit organizations, the guidance that applies to one organization might not necessarily apply to another organization. Please consult with your professional advisor on matters that are specific to your organization.    

Current as of July 22, 2007

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