Establishing a 501(c)3 Establishing a 501(c)3

Sabrina CampbellSabrina CampbellTreasurerTreasurer

American Association of Blacks in EnergyAmerican Association of Blacks in Energy

December 2009December 2009

Getting StartedGetting Started

1.1. Apply for EIN an Employee Identification NumberApply for EIN an Employee Identification Number

2.2. File Articles of Incorporation in your Chapter’s StateFile Articles of Incorporation in your Chapter’s State

3.3. Have By-laws to Attach to IRS FilingHave By-laws to Attach to IRS Filing

4.4. File IRS Form 1023, Application for Recognition of ExemptionFile IRS Form 1023, Application for Recognition of Exemption

5.5. Include Filing Fee (assessed on a sliding scale See Slide _)Include Filing Fee (assessed on a sliding scale See Slide _)

Power of Attorney DeclarationPower of Attorney Declaration Must File Form 2848 Must File Form 2848 with applicationwith application Authorizes individual designated to among other things, receive Authorizes individual designated to among other things, receive

taxpayer informationtaxpayer information Power of Attorney designation can be given to an Officer of the Power of Attorney designation can be given to an Officer of the

ChapterChapter This power of attorney authorizes someone to talk to the IRS on the This power of attorney authorizes someone to talk to the IRS on the

Chapter’s behalfChapter’s behalf

EINEIN

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: www.irs.gov/pub/irs-pdf/fss4.pdf

•Obtain form instructions at: ftp.irs.gov/pub/irs-pdf/iss4.pdf

Articles of IncorporationArticles 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 FilingChecklist before Filing

Do advance work on documentationDo advance work on documentation Ensure your Mailing/P.O. Box Address for the Ensure your Mailing/P.O. Box Address for the

Chapter is in orderChapter is in order Must have funds to pay the application feeMust have funds to pay the application fee Be prepared to waitBe prepared to wait

The Filing FeeThe Filing Fee Based on a sliding scale must be made Based on a sliding scale must be made

payable to the United States Treasurypayable to the United States Treasury If Chapter If Chapter grossgross receipts exceed $10,000 per receipts exceed $10,000 per

year, over a 4 yr. period fee is $750year, over a 4 yr. period fee is $750 If Chapter If Chapter grossgross receipts are less than receipts are less than

$10,000 per year, over a 4 yr. period fee is $10,000 per year, over a 4 yr. period fee is $300.$300.

Checklist before FilingChecklist before FilingAssemble application in following orderAssemble application in following order

Form 1023Form 1023 Form 2848Form 2848