Non-profit corporations are creatures of state laws. Income taxation is wholly within the purview of the United States Congress. In Missouri, at least one individual is required to form a non-profit corporation, which must be formed either for a mutual benefit (such as an athletic organization or social club) or for the general benefit of the public at large (e.g., medical services for indigents).
Non-profit corporations must have a president, secretary, treasurer and a board of directors of not less than three persons.
Exemption from federal taxation (and thus state taxation) is determined upon application for such tax exemption. A detailed IRS Form 1023 or 1024 must be submitted to the IRS within 27 months of formation in order to gain retroactive exemption to the date of the formation of the non-profit corporation. If such recognition is granted a public charity, (an IRC Section 501(c)(3) organization), such recognition will also grant donors to the non-profit corporation the right to deduct donations on their tax returns.
We have assisted numerous organizations as they navigate the road to incorporating as a non-profit corporation and obtaining tax-exempt recognition from the Internal Revenue Service. Our experienced staff can assist you in understanding your options, and also providing personal attention to achieving your organization’s objectives by seeking non-profit and tax-exempt status.