The first step involves filing the Articles of Incorporation to form a domestic non-profit corporation in the state of WA. The articles can be filed online and the filing fee is $50. If filed via mail the filing fee is $30 and they are processed in the order received. In both cases groups need to insure that their articles meet the IRS regulations for 501c3.
The second application filed with the state of WA is the application registering as a charitable organization. This application needs to be filed when an organization’s annual revenues exceed $50,000.
To file Articles of Incorporation with the Secretary of State’s office online, the website is:
https://www.sos.wa.gov/corps/nonprofitcorporationsonlineandpaperregistration.aspx
and to register your group with the Charitable program, the website is:
https://www.sos.wa.gov/charities/
In addition to the filing of the Articles of Incorporation, the parent support group will need to secure its on Employer Identification Number (EIN). To apply use Form SS-4, Application for Employer Identification Number. This is done online via the IRS website. There is no fee charged to secure an EIN, but the individual applying will need to provide their social security number to validate that they are a U.S. citizen. The SS-4 form can be found online at:
https://tax-irs-ein.com/application/non-profit
Once the parent support group has received it’s approved articles of incorporation from the Washington Secretary and its EIN from the IRS, it can complete IRS Form 1023 or 1023ez – Application for Recognition of Exemption. The cost to apply will depend upon which application the parent support group completed. For all groups with revenues under $50,000 annually they can file form 1023ez, and will be required to pay an online fee of $275. For all groups with revenues in excess of $50,000 annually, they will be required to complete form 1023, which will require a payment of $875. The process for the IRS to determine the organizations tax exempt status takes on average 6 weeks if filing the 1023ez and 6 to 9 months if filing the 1023. To complete the 1023ez form visit the IRS website at:
https://www.pay.gov/public/form/start/62759871
To access the 1023 application visit the IRS website at:
https://www.irs.gov/pub/irs-pdf/f1023.pdf
The IRS now requires all organizations seeking 501c3 status to file annual 990 forms regardless of the amount of revenues annually – even those with no revenues annually.
All support parent groups seeking to become tax exempt 501c3 organizations can access the Washington State Booster Club Association (WSBCA) for step-by-step guidance and resources to each step and process from pre-formation to tax exemption. The association also provides those organizations who elect to become members with discounted insurance, training workshops and hands on support from trained Club Advisors. Their website is: www.wsbca.org. Membership dues are $95 for low income, inner city and Title 1 affiliated groups and $195 for general members.
Non-Profit vs. Tax Exempt Clarification
Parent Support Groups sometimes confuse the filing and benefits of a non-profit corporation with that of a tax exempt 501c3 organization. Only organizations who have completed the IRS form 1023 or 1023ez, and who have received a letter of recognition from the IRS acknowledging approval as a tax exempt 501c3 organization can take advantage of the many benefits associated with 501c3 status, which include: exemption from federal income tax, exemption from federal unemployment taxes, State sales tax exemptions, limited property, Business and Occupation, and other excise taxes, bulk mailing permits, foundation grants, deductible contributions from donors.
