How To Start A Social Service Organization In Illinois

Welcome to our Illinois Nonprofit Startup Guide! If you're passionate about helping others and have an idea to serve your community, starting a nonprofit is a great manner to turn your vision into a reality. In that location are many different types of nonprofits - religious, educational, human service oriented, creature welfare, and more than. What all nonprofits have in common is a focus on helping others and benefiting their community. Yous are genuinely committed to these goals so yous are already well on your way!

Co-ordinate to the National Middle for Charitable Statistics, there were over 61,000 nonprofit organizations in Illinois in 2012. Before you start a new nonprofit, make certain you have identified an unmet demand in your customs and know that there are not any existing organizations serving your cause. If some other organisation exists, consider working together, as that may be a better way to make an impact in your community and utilize existing resources.

When you are ready to start your nonprofit, plan to contain and utilise for 501(c)(three) status, equally these are important steps to fully accomplish your goals. Equally a 501(c)(3) nonprofit, you will be able to employ for grants and accept donations, be exempt from federal corporate income tax, and limit the liability of your organization's officers and directors. Virtually chiefly, you volition gain credibility and legitimacy for your cause, instilling the public with confidence in your organization.

This guide will walk you through the basic steps to start your nonprofit in Illinois. Permit's become started!

Your organization's proper name establishes its brand and is also of import for incorporating with the state. The legal name of your nonprofit corporation may not disharmonize with any other organization registered in the country. Make sure the name is available and meets state requirements.

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Illinois Secretary of State - Business Services Department
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May contain, divide and apart from whatsoever other word or abbreviation in such proper noun, the give-and-take "corporation," "visitor," "incorporated," or "limited," or an abbreviation of one of such words. Must stop with the letters "NFP" if the corporate name contains any discussion or phrase which indicates or implies that the corporation is organized for whatsoever purpose other than a purpose for which corporations may be organized under this Act or a purpose other than a purpose set along in the corporation'due south articles of incorporation.
805 ILCS §105/104.05

The incorporator is the person who signs the Articles of Incorporation for your nonprofit. You will demand at to the lowest degree one, but can take more than one. Directors make up the governing body of your nonprofit corporation and are stakeholders in your system's purpose and success. You'll desire to identify three, unrelated individuals to meet IRS requirements. Y'all will also want to be aware of any age or residency requirements.

Illinois director requirements:	Number: minimum 3 Qualifications: None. No residency requirement. No membership requirement. Term: until adjacent election unless staggered as provided in the articles of incorporation or bylaws Quorum: majority Committee: minimum two directors and directors must be the majority of membership, except for committees involved in electing directors
Illinois officer requirements:	Defined in articles or bylaws. One officer certifies corporate records (e.thou. the Secretary). Two or more offices may be held by the aforementioned individual, if the bylaws then provide.

A registered amanuensis is responsible for receiving legal notices on behalf of your system. The appointed registered amanuensis must be physically located in the state and maintain an office that is open during regular business organization hours. As a nationwide registered agent, our service is designed to receive your legal documents and provide secure access to those documents through your online account. Our local Illinois registered agent function is located in Springfield, IL. We offer registered amanuensis service independently or as role of our nonprofit formation packages.

Your nonprofit's articles of incorporation officially marking the cosmos of your organization. They certificate where and when the arrangement was formed and capture other information necessary to verify its existence. While requirements for language vary from state-to-state, there are some basic provisions that the IRS volition await for when you apply for 501(c)(iii) exemption. It is important to customize the articles for your organization and brand certain you meet the state and IRS requirements. Meeting these requirements from the start will assist avert having to make amendments later or hazard getting your 501(c)(three) application rejected. Some states will as well crave you to publish your manufactures of incorporation, so be mindful of whatever deadlines and publishing instructions.

Bureau:	Illinois Secretary of State - Business Services Department
Form:	Form NFP 102.ten: Articles of Incorporation
Filing Method:	Mail, fax (only if you have a prepaid business relationship), or online
Agency Fee:	$50 by mail or $75 online
Turnaround:	~2 weeks past mail service or fax. ~1-5 business days if you file online and pay the $100 expedite fee.
Law:	805 ILCS 105
Notes:	The purpose of the corporation must exist selected amidst the 33 purposes listed in Section 103.05(a) of the General Not-For-Profit Corporation Act. Y'all must file by paper to include additional provisions such every bit those required for 501(c) tax exemption. When you file by mail y'all must submit the original articles with signatures in blackness ink and ane re-create.

Afterward filing articles of incorporation, you must file an initial study.

This unique, nine-digit number is assigned past the IRS to identify your nonprofit. All types of nonprofits will apply for an EIN, not only those that rent employees. You will use your EIN to open a bank business relationship, apply for 501(c)(3) condition, and submit 990 returns to the IRS.

Bureau:	Internal Revenue Service (IRS)
Grade:	IRS Form SS-4
Filing Method:	Mail, telephone, fax, or online.
IRS fee:	$0
Turnaround:	Immediately online or by phone. 4 business days past fax. iv-5 weeks by mail service.
Notes:	The IRS website is only available during sure hours. Print your EIN before endmost your session. For additional guidance, see IRS Pub 1635: Understanding Your EIN.

As you lot launch your nonprofit, you volition receive a number of official documents. Organizing these documents in 1 place volition save you headaches downwardly the route. Yous will soon take numerous items to proceed in your records including your EIN letter of the alphabet, bylaws, coming together minutes, 501(c)(three) determination letter, and more.

A great way to maintain necessary documentation is Records Director, our software for storing records securely, tracking directors and officers, and getting notified of meetings.
Your bylaws are the governing document for your nonprofit. They serve every bit your organization's operating manual and should be consequent with your manufactures of incorporation and the law. When your Board of Directors meets for the first fourth dimension, you'll review and ratify the bylaws and they will be a roadmap for governance from there.

At the aforementioned time, yous'll likewise want to create and adopt a conflict of interest policy. A conflict of involvement is when someone in a key position in your nonprofit has competing interests and is making choices that could benefit themselves to the harm of the organization. Personal interests should be gear up aside and organizational interests prioritized. If a conflict of involvement does arise, it should exist disclosed immediately.

Your application to the IRS for 501(c)(3) exemption volition crave that both the bylaws and the conflict of interest policy are approved and adopted. Once they've been adopted, safely store them in your Nonprofit Records Kit.
The initial organizational meeting of your Board of Directors will be incredibly productive. At this meeting you lot volition approve the bylaws, adopt the conflict of interest policy, elect directors, appoint officers, and corroborate resolutions such as opening the organization's banking company business relationship. Important decisions are existence made so exist sure to record them in the coming together minutes.
Illinois offers a consolidated state tax registration application.

Applying for 501(c) tax exemption can experience similar the about daunting footstep in bringing your nonprofit dream into reality, but obtaining taxation exemption comes with many benefits. You will be able to utilise for grants and abound your fundraising success in improver to being exempt from IRS income taxation. 501(c) is the affiliate of the Internal Acquirement Code that regulates nonprofit organizations. Like others, you may exist nigh familiar with 501(c)(3) nonprofits, including charities and foundations. 501(c)(three) nonprofits apply using Form 1023 or Class 1023-EZ. Review the criteria for each application and make sure you run into the eligibility requirements fix out past the IRS. Other types of nonprofits, including 501(c)(iv)s and 501(c)(6)s, apply using Form 1024. After reviewing and approving your awarding, the IRS will return a Determination Letter officially recognizing your exemption.

Completing the federal application for tax exemption is significantly easier with the assist and back up of a professional. Notice someone with the expertise to ensure the correct application is being used and is completed accurately. A well-prepared awarding takes time, over 100 hours by IRS estimates, so put yourself on the path to success by finding a specialist to walk aslope you in the journey - from kickoff to taxation-exempt finish!

Agency:	Internal Revenue Service (IRS)
Class:	IRS Form 1023, IRS Course 1023-EZ, or IRS Form 1024
Instructions:	IRS Instructions for Grade 1023, IRS Instructions for Form 1023-EZ, or IRS Instructions for Class 1024. Also see guidance IRS Pub 557: Tax-Exempt Status for Your Arrangement.
Filing Method:	Mail
Agency Fee:	$275 for organizations filing Class 1023-EZ and $600 for organizations filing Form 1023.
Turnaround:	1023-EZ average: <one calendar month. 1023 average: 3-vi months.

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With your IRS Determination Letter in hand, make sure you lot familiarize yourself with your state's requirements for recognizing your nonprofit'south tax-exempt status. This is an area where requirements vary state-by-state. Many states consequence their own tax-exempt certificate that can be used for sales and utilise tax purposes, but it may crave awarding and periodic renewal.

To file to obtain exemption from state income tax:

Non required

If your corporation receives a federal tax exemption, it is exempt from Illinois income tax. No reports need to exist filed and no tax is due.

More than information: Illinois Section of Revenue

To file to obtain Sales Tax:

This is some other area where laws differ from land to land, but most states require any nonprofit soliciting donations to register to do so on an annual ground. This means registering in the state prior to soliciting any resident of that state. Registering in your home land is essential, but you may also need to register other states depending on the scope of your arrangement.

Illinois Charitable Organization Registration

Agency:	Illinois Attorney General - Charitable Trust Bureau
Law:	225 ILCS 460/2 and 760 ILCS 55/5
Foreign Qualification is Prerequisite:	Yes
Registered Agent (Special Bureau) Required?	Yes

Automatic Exemption

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Exemption Eligible Organizations:

The University of Illinois, Southern Illinois University,Eastern Illinois Academy, Illinois Land Normal University, Northern Illinois University, Western Illinois University, all educational institutions that are recognized by the Country Board of Teaching or that are accredited by a regional accrediting association or by an organization affiliated with the National Commission on Accrediting, whatsoever foundation having an established identity with any of the same educational institutions, whatever other educational institution confining its solicitation of contributions to its student body, alumni, kinesthesia and trustees, and their families
Congenial, patriotic, social, educational, alumni organizations and historical societies when solicitation of contributions is confined to their membership
Persons requesting whatsoever contributions for the relief or benefit of whatever individual if the contributions nerveless are turned over to the named beneficiary, first deducting reasonable expenses for costs of banquets, or social gatherings, if whatever, provided all fund raising functions are carried on by persons who are unpaid, directly or indirectly, for such services
Any bona fide union, bona fide political organization or bona fide political action group, which does not solicit funds for a charitable purpose
Whatever charitable organization receiving an allotment from an incorporated community chest or united fund provided sure conditions are met
A bona fide organization of volunteer firemen, or a bona fide auxiliary or affiliate of such organization, provided all its fund raising activities are carried on by members of such an organization or an affiliate thereof and such members receive nocompensation, directly or indirectly
Any charitable arrangement operating a nursery for infants awaiting adoption providing that all its fund raising activities are carried on by members of such an organization or an affiliate thereof and such members receive no compensation, directly or indirectly
Any corporation established by the Federal Congress that is required by federal law to submit annual reports of its activities to Congress
Whatever boys' lodge which is affiliated with the Boys' Club of America provided, however, that such an affiliate properly files the reports required past the Boys' Club of America and that the Boys' Club of America files with the Government of the U.s. the reports required past its federal charter
Any veterans system chartered or incorporated under federal police force and any veterans arrangement which is affiliated with, and recognized in the bylaws of, a congressionally chartered or incorporated veterans system
Whatever parent-teacher organization that is controlled by teachers and parents of children attending a particular public or private school for which the organization is named and solicits contributions for the benefit of that particular school provided that certain conditions are met

Notes:

Fax a letter to the charitable trust bureau requesting exemption.

One-Time Exemption Registration

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Exemption Eligible Organizations:	Religious organizations
Form:	Form CO-3: Religious Exemption Class
Bureau Fee:	$0
Notarize:	Required
Notes:	Exemptions do not expire as long as the organization continues to qualify under the exemption criteria.

Initial Registration

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Form:	Form CO-1: Registration Statement
Filing Method:	Mail
Agency Fee:	$15
Turnaround:	4-vi weeks
Notes:	President and CFO or another authorized officer must sign. They must be two individuals. Notarization of signatures is not needed. Some Illinois counties and municipalities may require charities that solicit in-person to annals prior to fundraising.
Earlier you Apply:	Domestic Applicants: Cheque the available exemptions to see if your charity is eligible for exemption from the full registration requirement. Appoint a registered agent to receive legal documents in Illinois. If your charity meets the audit threshold, obtain an audited financial study to submit with your registration application. Look through the listing of required attachments and make sure that y'all have each required document in hand before starting the registration application. Foreign Applicants: Check the available exemptions to see if your charity is eligible for exemption from the full registration requirement. Appoint a registered agent to receive legal documents in Illinois. Obtain certified copies of your manufactures of incorporation (including amendments) to file during the foreign qualification process. These documents must be dated inside 90 days of the engagement of application for foreign qualification. If your charity meets the audit threshold, obtain an audited financial report to submit with your registration awarding. Expect through the list of required attachments and make sure that y'all have each required document in hand before starting the registration application.
How to Employ:	Domestic Applicants: File entity formation documents with the Illinois Secretary of Country - Business Services Department. Submit a Registration Statement and all required attachments to the Illinois Attorney General - Charitable Trust Bureau. Foreign Applicants: File foreign qualification documents with the Illinois Secretarial assistant of Country - Business Services Department (The foreign qualification requirement may be waived past sending a letter to the department notifying them that the clemency is not required to annals with the Secretary of State). Submit a Registration Statement and all required attachments to the Illinois Attorney Full general - Charitable Trust Bureau.
Required Attachments:	IRS course 990 Audited financials (if applicative) Manufactures of incorporation (or Constitution and all amendments and By-Laws if an unincorporated association) Bylaws IRS determination letter Listing of officers and directors Professional person fundraising contracts A signed argument indicating no funds were solicited or held in Illinois at any time prior to registration Certificate of say-so to practice business concern in Illinois If a representative of a probate estate, Volition and Letters of Office. Inventory; Declarations of Trust for any trusts into which the Will pours over and all Amendments thereto. If a charitable trust or a living inter vivos trust, Declaration of Trust, and all Amendments thereto; Inventory and recent accounting. If the organisation has been in beingness for less than i twelvemonth, likewise submit Form CO-ii: Financial Data Class

Registration Renewal

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Form:	Form AG990-IL: Illinois Charitable Organization Annual Report
Filing Method:	Mail
Agency Fee:	$15
Due:	Annually six months subsequently the close of your financial yr. So if your fiscal year ends December 31, and so renewal is due June 30. There is no official starting time to the renewal period, so renewals may be submitted as soon every bit financials become bachelor for the most recently completed fiscal year.
Due Date Extension:	Due dates can be extended for 60 days beyond the original due appointment past sending a letter including the name, CO number, and EIN number of the charity to the attorney general'southward role. If more time is needed, a 2d extension of an boosted 2.v months is available. When applying for a second extensions, charities must submit an unsigned AG990IL with "draft" written at the top, a letter requesting extension, preliminary income statement and remainder sail, IRS Course 8868, and the $15 renewal fee.
Original Ink:	Not required
Penalties:	There is a late fee of $100.
Notes:	Include all required attachments, including finanical audit if needed.
Required Attachments:	IRS form 990 Audited financials (if applicable) IFC Report of Private Fund-Raising Campaign (if applicable)

Change of Fiscal Year

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Cancellation

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Course:	AG990-IL Charitable Organization Annual Report
Bureau Fee:	$xv
Notes:	To close out your registration, file a final annual report with "FINAL" written across the top and original signatures. Organizations must also provide a letter indicating that they wish to withdraw and proof of dissolution or withdrawal from the Secretary of State.

To fundraise nationally or online, please come across our Fundraising Compliance Guide. Our services manage your initial, renewal, and exemption filings in every state.

Running your nonprofit corporation legally too means securing all applicative licenses and permits. The range of local, land, and federal requirements is wide. Access resources similar the Small Business organization Administration Business License & Let wait-up tool and search by your business type and locality.

Illinois nonprofits who wish to conduct bingos, raffles, and other charitable games must register with Illinois Section of Revenue - Office of Bingo and Charitable Games to exist compliant with the Illinois Charitable Games Act. You must apply at least 30 days before the consequence. One almanac application is good for 4 events. To apply, submit:
- Grade RCG-1: Charitable Games Application for License
- Grade RCG-2: List of Charitable Game Workers
- Grade RCG-10: Diagram of Charitable Games Consequence Playing Areas
- Any other required attachements
- $200 state fee

You've fabricated it! You lot turned your passion into a legitimate nonprofit corporation exempt under IRS 501(c) and are benefiting your community. That solid foundation on which you built your organization requires ongoing maintenance. Investing in maintaining compliance with all of the regime agencies is an ongoing responsibility and commitment needed to ensure your vision continues long into the futurity. Check out our compliance guide to learn more!

One time you have registered your nonprofit per the steps listed above, y'all volition need to maintain compliance with all of the government agencies. Staying current with the IRS and state requirements is an ongoing responsibility. Keep reading our Illinois nonprofit compliance guide to learn more!

Go along reading "Illinois Nonprofit Compliance"

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