IRS 990s for most organizations are due on May 15! Don’t miss the deadline.

New York Nonprofit Document Requirements

New York State Registration Documents

New York Nonprofit State Requirements

Welcome to the Empire State, where starting a nonprofit can be a great way to make a difference in your community. In this post, we’ll take you through the step-by-step process for starting a nonprofit in New York and obtaining tax-exempt status.

Naming your organization is one of the hardest things you’ll do! Choose a name that conveys your organization’s purpose and is memorable for potential donors and constituents. You also need to consider the specific requirements set by New York. Unless an exemption applies, the name of the corporation must contain one of the following words or abbreviations: Incorporated, Corporation, Limited, Inc., Corp., or Ltd.

You cannot use a name currently registered in the state, so you also want to check the availability of your chosen name (https://apps.dos.ny.gov/publicInquiry/). Consider a few variations that can be registered instead if your chosen name is taken.

After selecting a name, you need to designate an incorporator and registered agent. What are these roles? Let’s explore.
  • Incorporator: The Incorporator incorporates the business. They are responsible for filing the paperwork with the state, and their responsibilities end once the company is established.
  • Registered Agent: A Registered Agent plays a vital role in handling legal documents received by your organization. The registered agent must either be a resident of New York or a corporation authorized to conduct business there. By appointing a qualified registered agent, you ensure that critical legal communications and notices are promptly received and appropriately addressed on behalf of your organization.

The Board of Directors assumes responsibility for guiding and making decisions on behalf of the organization. Typically, a board comprises critical positions such as a president, treasurer, secretary, and other roles necessary for effective organizational governance.

Think of the Board as the people who run and manage the nonprofit organization. They may hire staff members to conduct business, but they are still always responsible for the organization.

Per federal regulations, a minimum of three directors who are not related to one another must be appointed (unless the organization is a Private Foundation, where related board members are ok). The organization’s Bylaws typically outline the specific board positions, ensuring compliance with internal guidelines and state requirements.

Forming a nonprofit in New York requires a lot of paperwork. The Bylaws and Conflict of Interest Policy helps govern the organization’s operations.
  • Bylaws: Bylaws serve as a comprehensive set of rules that dictate the operations and governance of the nonprofit.
  • Conflict of Interest Policy: The Conflict of Interest policy aims to safeguard the organization’s integrity by ensuring that decisions made by the board and officers are in the organization’s best interest and do not benefit individual members.

This step is a big one! Incorporating legally establishes your organization in New York, making everything official. The Articles of Incorporation are legal documents that include essential information about the nonprofit, such as its name, address, incorporator, registered agent, and more.

When the IRS establishes federal tax-exempt status (which we’ll talk about later in this guide), specific clauses must appear in your Articles of Incorporation. New York does not include these automatically when filing.

New York charges a $110 filing fee and typically processes applications in one to two days with expedite processing.

Once you have obtained your Certificate of Incorporation  for your nonprofit organization, the next step is to apply for a Federal Employer Identification Number (EIN). This unique number serves as an identifier for your organization and is issued by the Internal Revenue Service (IRS). An EIN enables your nonprofit to conduct various business activities, such as opening bank accounts, filing state and federal taxes, and hiring employees.

Did you know there are over two-dozen types of 501(c) tax-exempt organizations? 501(c)(3) is by far the most common and well-known, but it may not be the one that fits your organization. Determine which type of 501(c) tax-exempt nonprofit your organization is and prepare the appropriate application. It will likely be the IRS 1023, 1023 EZ, or 1024.

The IRS charges a $275 to $600 filing fee and typically processes applications in a few months.

Most states require all nonprofit organizations to register for a permit to solicit before they begin asking the public for funding. New York is one of those states. The required form is the Cha New York charges a $25 filing fee for the Charities Registration if income is projected to be above $25,000 per year. There is no filing fee if income expected to be below $25,000 per year. To maintain full compliance, you also want to file the following in New York:
  • State Income Tax Exemption: This exempts your organization from state corporate income taxes and can be filed after the IRS issues a tax-exempt determination.
  • State Sales Tax Exemption: This exempts your organization from paying sales tax.
Compliance refers to everything necessary to keep your organization active and legal. Compliance occurs at both the federal and state level. Here’s what’s required in New York:
  • Annual Report: Not required in the state of New York.
  • Charity Registration Renewal: Due annually on June 30 for charities that initially expected income below $25,000 and by May 15 for charities that expected income above $25,000. Remember, failing to renew will lead to the organization illegally soliciting funds.
  • Federal 990: Nearly all organizations must file a Form 990 Annual Report to maintain tax-exemption status. The 990 return is due on the 15th day of the 5th month after the end of the organization’s fiscal year. Failure to file for three consecutive years will automatically revoke the organization’s tax-exempt status!

BryteBridge Is Here To Help

Starting a nonprofit in New York may seem daunting, but the process can be streamlined with the proper guidance and a well-defined plan.

If you want assistance establishing a nonprofit in New York, please contact BryteBridge. Our team of experts is readily available to provide the support and guidance you need. Contact us today to get started on your nonprofit journey.