Iowa 501c3 Corporations: Tax Exempt Organizations Non Profit
Iowa Non Profit Incorporation
Under the Iowa Non Profit Corporation Act, there are three types of non profit organization: public benefit, mutual benefit and religious. Public non profit organizations are charitable organizations and qualify for the 501(c) (3) tax-exempt status from the IRS.
Form a Non Profit Organization in Iowa
The first step to forming a non profit organization in the State of Iowa is filing articles of incorporation, submitting it to the Iowa Secretary of State, and paying an initial filing fee of $55.
Filing Articles of Incorporation - The articles of incorporation must include the approved name of the corporation, its mailing and principal address, name and address of its officers and/or directors, its stated purpose and the name and street address of the registered agent.
Applying for the Tax Exempt Status - Upon receiving approval for your application, you file for 501(c) (3) tax-exempt status from the IRS and relevant tax boards to ensure the IRS is fully aware of your tax-exempt status.
The organization must then convene a general meeting of its directors to set forth the corporation's bylaws and policies, elect officers and discuss other business such as strategies for soliciting donors and establishing a system for accounting and record keeping of minutes and financial records.
Benefits of the Non Profit Tax Exempt Status
Obtaining tax-exempt status in the State of Iowa can bring about many potential benefits and privileges including:
- Tax-exempt status for the organization and for the grants donated by its contributors when they file their income taxes
- The ability to employ directors as regular employers
- Directors are not liable to any debts or obligations of the corporation