The Business of Running a Shelter or Rescue: Organization Document Filing Requirements

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1 The Business of Running a Shelter or Rescue: Organization Document Filing Requirements Adrienne Linnell, MAC Treasurer September 30, 2018

2 First, The IRS 990 Not a tax filing; a report of activities and financial information, to support charitable, tax exempt status. Available to the public at large. Required to be filed annually by all 501(c)3 animal welfare organizations Different versions of Form 990 exist; the one to file is based on IRS criteria Form 990N ( epostcard ) orgs $50K or less gross receipts. Can only be filed electronically Form 990EZ < $200K gross receipts and < $500K total assets (both must be true) Form 990 (long form) - $200K+ gross receipts or $500K total assets (if either is true, filing long form is required)

3 IRS 990 Requirements Deadline for filing: the 15 th day of the 5 th month following the end of the org s fiscal year eg: MAC FYE 6/30; 990 filing deadline is 11/15) File Form 8868 to request a 3 month automatic extension before the regular due date (not for 990N, but no penalties for filing it late) Failure to file by the due date will result in penalties Failure to file for 3 consecutive years will result in loss of tax exempt status on the date the third year filing is due ( automatic revocation ). The IRS does not need to inform orgs if they lose tax exempt status thru automatic revocation.

4 IRS Details, Details New Orgs must file 990 even while their application for 501c3 status is pending Penalties may be assessed for incomplete filings Unrelated Business Income Tax (UBIT): $1K+ of UB income not related to the charitable purpose; must file 990-T and pay tax on the income For more information

5 MA Attorney General s Office: All public charities doing business in the Commonwealth of Massachusetts must register with the Non- Profits/Public Charities Division and, thereafter, file annual financial reports with the AGO. Upon registration, the AGO will assign the public charity an Attorney General Account Number (AG Number). Any charities that wish to solicit funds must also obtain a "Certificate for Solicitation" before engaging in fundraising activities.

6 Financial Reporting done thru Form PC - AG s Office must be filed annually by all MA registered charities, regardless of org size. Filing fee based on org. gross revenue ($35 fee for orgs <$100K) Includes financial and fundraising information (schedules A-1 & A-2 if raising funds in Massachusetts) Filing deadline same as for IRS 990 (15 th day of the 5 th month following fiscal year end) Extensions can be requested (3 months) request by . Must include your 6 digit AG account number & FEIN Filing is by hard copy only and is a public document After processing you receive a "Certificate for Solicitation, which is good for one year Check filings by phone or online at

7 Attachments to Form PC 1. Copy of IRS Return Your IRS Form 990 or 990EZ with all required IRS schedules except Schedule B Note that the 990-N is not accepted!! Organizations filing 990-N must complete 990EZ for MA; but organizations with gross support and revenue of $5,000 or less are no longer required to file a Federal Form 990-EZ with their Form PC

8 Attachments to Form PC 2. Audited Financial Statements / Review CPA s Review of Financial Statements: If the organization s gross support and revenue (as reported in the Summary of Financial Data, Line 5B of the Form PC) totals more than $200,000* and not more than $500,000, financial statements accompanied by a CPA s Review Report must be submitted with the Form PC. Audited Financial Statements: If gross support and revenue totals more than $500,000, audited financial statements, prepared by an independent CPA in accordance with generally accepted accounting principles (GAAP), and the accompanying independent auditor s report must be submitted with Form PC.

9 3. Amended Articles/Bylaws Attachments to Form PC Significant changes made to organizational documents 4. Filing Fee Gross Support and Revenue Fee Less than $100,000 $35 $100,001 to $250,000 $70 $250,001 to $500,000 $125 $500,001 to $1 million $250 $1,000,001 to $10 million $500 $10,000,001 to $100 million $1,000 $100 million+ $2,000

10 MA Secretary of State s Office: Every non-profit corporation organized under the laws of the commonwealth must file a non-profit annual report with the Corporations Division on or before November 1st of each year. M.G.L.A. c180 26A; 950 CMR Failure to file may result in Involuntary Revocation of the organization s ability to do business in Massachusetts

11 MA Secretary of State s Office: Corporations Annual Report Form Lists date of Board of Director s annual meeting Official address of the organization (PO Box not acceptable) Names, addresses and terms of Board Directors File by US Mail ($15 fee) - or file online ($18.50 fee); For an existing entity, login requires your Customer ID Number (CID) and PIN. FilingMethod=I You can check the database for filings at aspx

12 MA Secretary of State s Office Misc. Forms Find forms for various legal changes with the Commonwealth online at npfrm.htm#2