If the organization is not required to have a seller’s permit, they periodically evaluate sales and determine if they meet the definition of occasional sales or otherwise exempt sales. See WI Pub 206 for more information.
For information on a seller’s permit and remitting sales tax go to WI Pub 206 >>
More »The organization has received their Letter of Determination from the IRS indicating tax exempt charitable status “We have evaluated whether we are required to have a seller’s permit for items that we sell. If required, we have obtained a seller’s permit, and collect and remit sales tax to the Wisconsin Department of Revenue.
A Letter of Determination is the official, written documentation of the Internal Revenue Service’s approval of a nonprofit’s request for 501(c), tax-exempt status. Issued on IRS letterhead, the Letter of Determination includes […]
More »The organization has a records retention policy that outlines the systematic review, retention and destruction of records (electronic or paper) received or created by the organization in connection with the transaction of organization business. The policy ensures compliance with federal and state laws and regulations to eliminate accidental or innocent destruction of records. The policy also addresses backup and recovery of essential records.
A sample record retention policy is available here>> from the Center for Nonprofit Excellence
More »The organization knows their IRS filing requirements (990N, 990EZ, 990 and/or 990-T) and are compliant. A copy is reviewed by the board prior to filing each year.
For helping with 990s, go to the IRS website here >>
More »The organization meets the public support test for 501c3 tax exempt status, i.e. at least 1/3 (33.3%) of donations are given by donors who give less than 2% of the nonprofit’s overall receipts.
private foundations vs. public charities. Both organizational types are considered tax-exempt 501(c)(3) nonprofits, but the requirements regarding donor support are quite different. Private foundations are typically closely-governed nonprofits, and the purpose of […]
More »The organization does not not engage in substantial legislative activities (commonly known as lobbying).
A nonprofit must not engage in substantial lobbying activities. A nonprofit must know and understand the tax law limits on the amount of permissible lobbying. Organizations that engage in lobbying […]
More »The organization does not directly or indirectly participate in, or intervene in, any political campaign on behalf of (or in opposition to) any candidate for elective public office.
Source: IRS Under the Internal Revenue Code, all section 501(c)(3) organizations are absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or […]
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