clinical social work association


The National Voice of Clinical Social Work 

Strengthening IDENTITY  | Preserving INTEGRITYAdvocating PARITY

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  1. Need to define the Mission Statement and Goals
  2. Identify board of directors
  3. Identify target audience
  4. Understand state codes for incorporating a business in the state
  5. Create documents and get structure started regarding board to ensure business classification (each state does different business classifications)
  6. Apply for tax exemption status 501c (3) – complete IRS Form 1023-EZ
  7. Consult a lawyer with experience working with non profit
  8. Prepare articles of incorporation
  9. Identify ongoing obligations regarding board meetings, files, reports, tax returns
  10. Obtain general liability insurance to protect board members

You can review the BY laws for California Society for Clinical Social work at:  www.clinicalsocialworksociety.org/bylaws

Resources:

Section 501(c)(3) is the portion of the US Internal Revenue Code that allows for federal tax exemption of nonprofit organizations, specifically those that are considered public charities, private foundations or private operating foundations.

What Is 501(c)(3)?

An organization with a 501(c)(3) status starts out as a nonprofit corporation and then becomes a charity that is exempt from federal taxes. It is not subject to income and sales taxes and lets its donors write off their contributions. Some nonprofit organizations and many for-profit organizations form related 501(c)(3) organizations to perform charitable work.

501(c)(3) is the most common tax status among nonprofit organizations. In order to qualify for this status, an organization is required to fit into a tax-exempt purpose that is defined by the IRS. Examples of such a purpose include:

  • Charitable
  • Educational
  • Religious
  • Scientific
  • Literary
  • Public safety testing
  • Fostering of international or national amateur sports competition
  • Prevention of cruelty to children and animals

Any profit that is generated through the organization's activities cannot benefit any of its directors or officers, or other individuals. However, this does not mean that its directors and officers cannot be paid for their work. Unlike a regular corporation where shareholders and directors receive distributions of profits, a 501(c)(3) organization cannot issue dividends.

In addition, in the event that the organization shuts down, its assets cannot be distributed to any individual. A 501(c)(3) organization is also required to keep propaganda, lobbying, or other legislative activity to an insubstantial level, which is generally 10 to 20 percent of its activities.

IRS:

https://www.irs.gov/charities-non-profits/charitable-organizations/exemption-requirements-501c3-organizations  

https://www.irs.gov/forms-pubs/about-form-1023-ez

Starting a 503C Nonprofit

https://www.legalzoom.com/articles/how-to-start-a-nonprofit?kid=_k_CjwKCAjwybyJBhBwEiwAvz4G705U8M3mH_6qFtNjSuhMA73fDXZM-2klg-C3cYBewa3bnmRZSv9nqRoCE3IQAvD_BwE_k_&utm_source=google&utm_medium=cpc&utm_term=503c%20non%20profit&utm_content=471660368544&utm_campaign=SMB%20|%20NP%20|%20501c3%20|%20Exact&kpid=go_11306349294_113892072434_471660368544_aud-296264003243:kwd-329505241097_c&gclid=CjwKCAjwybyJBhBwEiwAvz4G705U8M3mH_6qFtNjSuhMA73fDXZM-2klg-C3cYBewa3bnmRZSv9nqRoCE3IQAvD_BwE

Building an Effective Board

https://www.toptal.com/finance/venture-capital-consultants/building-effective-startup-boards

State Tax Codes:

https://www.sba.gov/business-guide/manage-your-business/pay-taxes

Articles of Incorporation:

You file articles of incorporation with your state's business filing agency. You must pay a filing fee when you submit your paperwork. Once the corporation has been approved, you will receive a certificate of formation from the state.

General Liability for Boards:

https://www.thehartford.com/management-liability-insurance/d-o-liability-insurance/explained#:~:text=Directors%20and%20officers%20(D%26O)%20liability%20insurance%20protects%20the%20personal%20assets,acts%20in%20managing%20a%20company



PO Box 10
Garrisonville, Virginia  22463

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