Charities and Nonprofits (Exempt Organizations)
Dissolutions for Nonprofit Corporations (Posted October 2015)
Beginning January 1, 2016, inactive nonprofit corporations, which are eligible for administrative dissolution under the recently enacted law under AB 557, can be automatically or voluntarily dissolved. There are three new ways a nonprofit corporation can be dissolved:
- Automatic dissolution – Allows the FTB to automatically administratively dissolve a corporation that is suspended or forfeited for a period of more than 48 continuous months and is no longer in business. Due to the anticipated high number of nonprofit organizations that may meet the requirements, it will take time for FTB to complete the automatic process.
- Short form dissolution - Secretary of State will allow a short form dissolution for eligible nonprofit corporations that file for dissolution within 24 months from the date the articles of incorporation were filed.
- Voluntary dissolution - FTB will be developing a form that practitioners and/or nonprofit corporations can complete and submit to FTB to voluntarily request the administrative dissolution of nonprofit organizations that may be eligible. The form should be ready in early 2016.
Additional information will be made available to provide guidance to nonprofit organizations on the new law as procedures are developed.
- Reporting Nonprofit Organizations that Receive Public Resources and Engage in Campaign Activity (posted February 2014)
- Tax-exempt automatic revocations (posted October 2013)
Filing for Exemption Status
Most charities and nonprofit organizations must apply for and receive a determination or acknowledgement letter from us in order to be recognized as tax-exempt in California.
- The Tax-Exemption Process
- Active Versus Inactive Status
- California Tax-Exempt Status and Federal Exemption
- Disclosure of Application Materials
- Nonprofit Versus Tax Exempt
- Exempt Returns Filing Requirements
- Reporting Nonprofit Organizations that Receive Public Resources and Engage in Campaign Activity
- Benefit Corporation and Flexible Purpose Corporation
- Limited Liability Companies and Tax-Exempt Status