To get tax-exempt status from California franchise or income tax for your organization, file the FTB 3500, Exemption Application.
The following are required:
- FTB 3500, Exemption Application with an original signature.
- $25 check or money order, payable to Franchise Tax Board.
- One copy of the entity’s creating document.
- One copy of the by-laws or proposed by-laws.
- One copy of your budget or proposed budget.
- All other required information and supporting data identified in form FTB 3500.
Include all requested documentation and answer all questions on the form. If we need more information, or if you need to amend the articles in order to qualify for tax-exempt status, we will contact the officer or representative designated on the application form. However, this will delay our determination of tax-exempt status.
Submit the FTB 3500, Exemption Application request at least 90 days before the date you need tax-exempt status for your organization to ensure adequate time for processing.
Important: Your organization is not exempt for tax purposes until we issue the determination letter. Trusts must include a copy of the federal determination letter before state tax-exempt status will be granted.
To get and retain tax-exempt status, organizations are required to be organized and operating for nonprofit purposes within the provisions of their exempt code section. An inactive organization is not entitled to exempt status.