Nonprofit Law Resource Library
State-By-State Initial Compliance - California
Initial Filings for California Nonprofit Organizations
For a general discussion on starting a nonprofit organization, please refer to our article, Starting a Nonprofit Organization.
Please note that as of January 1, 2005, California has instituted the Nonprofit Integrity Act of 2004. Much like the Sarbanes-Oxley Act in the for-profit sector, this new law (SB 1262 - Sher, Chapter 919, Stats of 2004) seeks to improve nonprofit governance, limit abuses of executive compensation and prevent commercial fundraising abuses. Please refer to the California Attorney General's publication "Guide to the Nonprofit Integrity Act of 2004" for specifics on the newly instituted regulations. For more information on the impact of the Sarbanes-Oxley Act on the nonprofit sector, refer to our article, Sarbanes-Oxley and Nonprofit Organizations and Independent Sector's website.
To Incorporate in California
a. Submit Articles of Incorporation to:
Business Programs Division
1500 11th Street
Sacramento, CA 95814
Attn: Document Filing Support Unit Information: (916) 657-5448
Web Site: www.sos.ca.gov/
Filing Fee: $30b. Within 90 days of filing the Articles of Incorporation, submit Form SI-100 (Statement of Information) to:
Secretary of State
Statement of Information Unit
P.O. Box 944230
Sacramento, CA 94244-2300 Information: (916) 657-5448
Web Site: www.sos.ca.gov/
Filing Fee: $20*Note: Failure to file by the due date may result in the assessment of a $50 penalty. To Obtain 501(c)(3) Tax-Exempt Status
Submit Form 1023, Application for Recognition of Exemption to:
Note new address:
Internal Revenue Service
P.O. Box 12192
Covington, KY 41012-0192 Information: (800) 829-1040
Forms: (800) 829-3676
Web Site: www.irs.gov/charities
Filing Fee: $750 ($300 if revenues less than $10,000/year)Note: User fees will increase for all applications for exemption (Forms 1023, 1024, and 1028) postmarked after January 3, 2010:
$ 400 for organizations whose gross receipts are $10,000 or less annually over a 4-year period
$ 850 for organizations whose gross receipts exceed $10,000 annually over a 4-year period
$ 3,000 for group exemption letters.
For more information on filing fees and for information on the IRS' new web initiative "Cyber Assistant", see the IRS website.To Obtain California Income Tax Exemption
Submit Form FTB 3500A with a copy of the IRS Determination Letter to:
Exempt Organizations Unit MS F120
Franchise Tax Board
PO Box 1286
Rancho Cordova, CA 95741-1286 Information: (916) 845-4171
Web Site: www.ftb.ca.gov/
Filing Fee: $0Note: If the effective date of federal tax-exemption differs from the incorporation date of the organization, than it should file Form FTB 3500 to obtain California tax-exemption with an effective date that is the same as the date of incorporation.
For more information, consult the Franchise Tax Board's website and FAQ.To Obtain California Sales and Use Tax Exemption
Nonprofit purchasers generally are not exempt from sales and use taxes. However, some charitable organizations that qualify for California's “welfare exemption” and are involved in selling or donating items used principally to assist purchasers/donees in distressed financial condition may qualify for exemption from sales taxes on purchases made for these purposes.
To apply for exemption, the organization should request a “review of eligibility” by submitting Bylaws, Articles of Incorporation, IRS 501(c)(3) determination letter, a copy of the California Franchise Tax Board's tax-exempt qualification letter, and a letter describing the practices and activities of the organization to:
Compliance Planning & Evaluation
Board of Equalization
PO Box 942879
Sacramento, CA 94279-0044 Information: (800) 735-2922
Web Site: www.boe.ca.gov/
Filing Fee: $0For more information on sales of specific items, or by specific types of nonprofit organizations that are exempt from California sales and use taxes, refer to California's "Publication 18".
To Register with the California Attorney General
Within 30 days of receiving assets for the charitable purposes for which organized, submit Form CT-1 (Registration Form) with Articles of Incorporation, Bylaws, IRS 501(c)(3) determination letter, most recent IRS Form 990, and a statement describing the primary activity of the organization (a copy of the statement of purposes from the IRS 1023 application will suffice) to:
State of California
Office of the Attorney General
Registry of Charitable Trusts
Sacramento, CA 94203-4470 Phone: (916) 445-2021
Fax: (916) 444-3651
Web Site: www.caag.state.ca.us/
Filing Fee: $0Corporations organized and operated primarily as hospitals, schools or religious organizations are exempt from filing, but must furnish information substantiating such status to the above address.
The Unified Registration Statement form may be filed in place of form CT-1.
