How can a nonprofit organization acquire tax-exempt status?

In South Dakota, acquiring tax-exempt status for a nonprofit organization is a process that requires certain steps to be completed. The non-profit must first apply for and receive a letter determining the organization’s tax-exempt status from the IRS. This can be done by filing Form 1023-EZ or 1023 with the IRS. Organizations meeting certain criteria can submit Form 1023-EZ, which is a simplified version of the 1023 form. Once the letter is received, the nonprofit must then register with the South Dakota Department of Revenue. This can be done by completing and submitting Form APP-001, Application for Tax Exemption. After submitting the application, the organization must be approved by the South Dakota Secretary of State. This can be done by submitting the IRS determination letter to the Secretary of State and filing all other required documents. Once approved by the Secretary of State, the nonprofit must file a nonprofit corporation annual report with the state each year. This is completed by submitting Form APP-004, which is used to report the organization’s assets and activities. By following these steps, a nonprofit organization in South Dakota can successfully acquire tax-exempt status. This can be beneficial in many ways, from lower taxes to fundraising opportunities. Obtaining tax-exempt status is a multi-step process but can be well worth the effort.

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How can a nonprofit organization acquire tax-exempt status?

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