Lisa and the Law

What makes a non-profit charity a non-profit?

A corporation is NOT a non-profit (not-for-profit) until it applies for tax exempt status with the Internal Revenue Service (“IRS”) AND the IRS grants it to the corporation. Filing Articles of Incorporation with the Arizona Corporation Commission (“ACC”) that check the box for “non-profit” on the ACC form does not make your corporation a non-profit AND your Articles of Incorporation (if you use the ACC’s form) do not include the mandatory language required by the IRS. Obtaining tax-exempt status for your corporation takes time (as in 9 months to a year or more). If you only filed the ACC’s Articles of Incorporation form for your non-profit, you should file Restated articles that include the appropriate language. Contact a business law attorney that works with non-profits for guidance on filing Restated articles to include acceptable language for the IRS.