Starting a New Nonprofit Organization Can Be Difficult.
Keeping that Organization in Compliance Can Be, Too.

Many San Diego nonprofit organizations find themselves in hot water with the IRS or other state regulatory agencies for failure to meet the many annual compliance filing requirements.

There are four primary regulatory agencies that a nonprofit organization needs to worry about.

First, there is the California Secretary of State. After filing the initial Articles of Incorporation, organizations much complete an Statement of Information (SI-100) advising the Secretary of State of the organization’s officers and address. This must be refiled biennially thereafter, or whenever a change occurs

Second, there is the Internal Revenue Service. Once exemption is received, organizations must file one of the form 990, 990EZ or the 990-N series of information returns. Failure to do so for three consecutive years will result in automatic revocation of the organization’s tax exempt status.

Third, there is the California Franchise Tax Board. Once exemption is received, organizations must file one of the form 199 or 199-N series of information returns. Failure to do so for three consecutive years will result in automatic revocation of the organization’s tax exempt status.

Finally, there is a registration requirement for organizations that are public charities and private foundation to register with the California Attorney General’s Registry of Charitable Trusts (Form CT-1). Thereafter, these organizations must file annual reports with the Registry to stay in compliance (Form RRF-1).