Helpline Frequently Asked Questions

STARTING A NONPROFIT
The process can take anywhere from 6 months (if you file everything correctly and things move quickly with the state and IRS) to 2.5 years.
No, but we are happy to answer questions as we can. We can also recommend consulting firms who help with filing.

The first official step in becoming a tax-exempt organization is to file incorporation papers with the Oklahoma Secretary of State. 

There will be an Oklahoma state cost as well as a federal/IRS cost. You should expect to spend approximately $900-1000 total, or closer to $2000 if you use a consultant or firm.  The cost may be less if you are eligible for a 1023-EZ form. The federal filing form you use is based on the organization’s assets and annual gross receipts.

No, The Center does not provide funding for nonprofits. We offer training, consulting, advocacy, etc. 

    The National Council of Nonprofits suggests a fiscal sponsorship, which is possible before you receive your tax-exempt status with the IRS.

     
    Fiscal Sponsorship for Nonprofits

    Most new nonprofits build a board by inviting people they know. You will need 3 board members to start your nonprofit. Board members should know the legal duties and responsibilities associated with board service. Ideally, the board members will not be related to the founder or one another and represent skill sets that will help the nonprofit as it develops and grows. (See board responsibility information below.)

    Members can post board openings for free on our Career Center; Non-members can post for $50.

    RECOMMENDATIONS

    See our list of Business Partners that provide legal services.

    See our list of Business Partners that provide financial advice and services

    The Center also offers Professional Financial Services.

    We recommend Boot Camp for Boards, Standards for Excellence and our other board courses.

    We recommend Standards for Excellence and Nonprofit Management Certification.

    Yes! When you register for most of our courses or when you officially request consulting services, you are able to indicate need for scholarship.

    NONPROFIT ETHICS

    Fundraising in different states is unfortunately complicated. A good rule of thumb is: if you are soliciting donations in any state, check the fundraising/charitable solicitation laws for registration in that state. 

    Charitable Solicitation Registration     Charitable solicitation - Periodic state reporting 

    You should check your nonprofit status with the IRS

    If you are still in good standing, file your 990 immediately. If your organization has not filed in more than 3 years, it is possible that your tax-exempt status has been automatically revoked.

    Filing procedures: Late filing of annual returns

    There are several ways to have your tax-exempt status reinstated, which the IRS outlines.

    Automatic revocation - how to have your tax-exempt status reinstated

    Nonprofits are explicitly not allowed to participate in or intervene in any political campaign for a candidate or party. 

    Restriction of political campaign intervention by Section 501(c)(3) tax-exempt organizations

    Political Campaign Activities - Risks to Tax-Exempt Status

      Voting by proxy is generally not recommended by legal nonprofit experts. The reason for this is that boards of directors have legal duties and responsibilities that should not be proxied to other parties. If a board member cannot generally make meetings and needs a proxy for this reason, the recommendation is that they leave the board. In the event that absence is unavoidable, the board member should give written authorization to a proxy and clear direction on how to vote on a particular matter. The board meeting and/or vote in which the proxy will take place should be clearly posted and appropriate time should be given to all board members to make arrangements to be present. The board should also consider electronic voting policies and procedures in bylaws to avoid proxy voting.
      Sales tax exemption is a separate process from tax-exempt 501c3 status with the IRS. You must complete a separate form and provide information to the Oklahoma Tax Commission.
      Under OK Stat § 68-2359, certain types of nonprofits are exempt from federal as well as Oklahoma income tax. Look over the statute carefully to determine if you are exempt in Oklahoma and if you are required to file any forms.