| Are you thinking about starting a non profit charity, | | | | Form 1023, Application for Recognition of Exemption. |
| but are not sure where to start or how to go about | | | | The purpose of completing this form is so that the |
| it? Have you heard of the term "501(c)(3)" but are | | | | IRS will recognize your organization as a tax exempt |
| not exactly sure what that term means or what | | | | charity. Moreover, once you have obtained such |
| significance is attached to it? You are probably not | | | | exemption status, donors who contribute to your |
| alone. This article hopes to shed light on some of the | | | | charity will be able to make donations that are tax |
| issues involved in creating and setting up a non profit | | | | deductible, to the extent permitted by law. In order |
| charitable organization in Florida. The article also | | | | to obtain such tax exemption status, you must |
| attempts to describe the basic steps one must take | | | | complete Form 1023 and submit the completed |
| in going about setting up a charity without getting | | | | application to the IRS along with the applicable IRS |
| into too much confusing detail. If you are looking to | | | | application fee. To obtain a copy of the application, |
| set up a non profit in Florida, the basic steps to be | | | | you can contact the IRS at 1-800-829-1040. |
| taken are as follows: | | | | After the form is submitted to the IRS, within about |
| • Once you have your proposed charitable | | | | 3 to 5 months thereafter, the IRS will respond by |
| mission in mind, you should incorporate. To | | | | sending to you a Determination Letter which formally |
| incorporate a non profit, you must prepare and file | | | | recognizes your entity as a 501(c)(3). If your |
| articles of incorporation with the Florida Division of | | | | application is incomplete or a problem arises, the IRS |
| Corporations. The articles of incorporation is the | | | | will notify you of this, which may result in delay of |
| document which "creates" your non profit under | | | | the successful processing of your application. |
| state law. The articles contains, among other | | | | • Once you have received the Determination |
| provisions, the name of the legal entity, address of | | | | Letter from the IRS, you should notify the Florida |
| the corporation, and name and address of the | | | | Department of Revenue of your charity's tax |
| registered agent. Additionally, the articles must state | | | | exemption status by sending a copy of your IRS |
| the specific purpose for which the corporation is | | | | Determination Letter to that Department. The Florida |
| organized. The articles must also contain certain | | | | Department of Revenue can be reached at |
| provisions which are required by the IRS. In order to | | | | 1-800-352-3671. |
| file the articles of incorporation (and create your non | | | | • Another issue to consider is the solicitation of |
| profit), you must submit the document to the Florida | | | | donations. If you plan to solicit donations from the |
| Division of Corporations along with the state filing fee | | | | general public to support your charity's mission, then |
| of $70.00. The filing fee must be made payable to | | | | you must register your charity with the State of |
| the "Florida Department of State." You must send | | | | Florida. The registration process is administered |
| the articles to the Division of Corporations, whose | | | | through the Florida Department of Agriculture and |
| address is P.O. Box 6327, Tallahassee, Florida 32314. | | | | Consumer Services. In order to register to solicit |
| • After incorporation, you should obtain an | | | | donations in Florida, you must secure a copy of the |
| Employment Identification Number ("EIN") for your | | | | registration application from the Florida Department |
| non profit. To obtain an EIN, you can apply for it with | | | | of Agriculture and Consumer Services, fill it out, and |
| the IRS online, via fax, or over the phone. You can | | | | then submit the completed application to that |
| reach the IRS by visiting their website at | | | | department along with the applicable registration fee. |
| • To establish an IRS-recognized charity, the | | | | You can obtain the registration application by |
| next major step is to apply for 501(c)(3) tax | | | | contacting the Department of Agriculture and |
| exemption status with the IRS. This step involves | | | | Consumer Services at 1-850-488-3022. |
| filling out a relatively detailed application known as | | | | |