what is chartered chapter? do state chapter of national association have to have its own IRS tax exemption?
We want to incorporate a national non-profit organization, incorporated in 1 state as a national association. Can our association create chapters in different states and work freely everywhere with the same and only one IRS tax-exemption granted to the national association ? Or does every state chapter we will put in place has to apply and have its own???
Thank You. I’ll appreciate your help.
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August 18th, 2010 at 4:55 am
I think you can create different chapters.
August 18th, 2010 at 5:27 am
What you do for this situation is you establish the non-profit entity in your home state, and get your IRS tax exemption determination letter for that entity.
Then you register your entity in all the other States and territories that you plan on operating in. This is not reincorporating, just registering the presence of a foreign corporation.
With each State, you will also need to aquire a State tax exemption. As part of the application, each State will want a copy of the IRS determination letter.
So, yes this can be all done through a single entity with a single IRS determination letter. However, you will still have to file in every State you register in, and some of them will also require a copy of the tax return filed for tax-exempt entities (Form 990) or require their own tax return.