How to Start a Nonprofit in Kansas

1. Name Your Organization

   Your organization’s name establishes its brand and is also important for incorporating with the state. The legal name of your nonprofit corporation may not conflict with any other organization registered in the state. Make sure the name is available and meets state requirements.

   Name Search:

   Kansas Secretary of State Name search

   Suffix:

   The name of the corporation which, except for banks, shall contain one of the words "association," "church," "college," "company," "corporation," "club," "foundation," "fund," "incorporated," "institute," "society," "union," "university," "syndicate" or "limited," or one of the abbreviations "co.," "corp.," "inc.," "ltd.," or words or abbreviations of like import in other languages if they are written in Roman characters or letters.  K.S.A. &sect17-7919

2. Recruit Incorporators and Initial Directors

   The incorporator is the person who signs the Articles of Incorporation for your nonprofit. You will need at least one, but can have more than one. Directors make up the governing body of your nonprofit corporation and are stakeholders in your organization’s purpose and success. You’ll want to identify three, unrelated individuals to meet IRS requirements. You will also want to be aware of any age or residency requirements.

   Kansas director requirements:	Number: minimum 1 Qualifications: A natural person. No residency requirement. No membership requirement. Term: until successor elected and qualified Quorum: majority Committee: minimum 1 director
   Kansas officer requirements:	Defined in bylaws or board resolution. One officer prepares minutes of the directors' and members' meetings and keeps a record book. Two or more offices may be held by the same individual.

3. Appoint a Registered Agent

   A registered agent is responsible for receiving legal notices on behalf of your organization. The appointed registered agent must be physically located in the state and maintain an office that is open during regular business hours. As a nationwide registered agent, our service is designed to receive your legal documents and provide secure access to those documents through your online account. Our local Kansas registered agent office is located in Wichita, KS. We offer registered agent service independently or as part of our nonprofit formation packages.

4. Prepare and File Articles of Incorporation

   Your nonprofit’s articles of incorporation officially mark the creation of your organization. They document where and when the organization was formed and capture other information necessary to verify its existence. While requirements for language vary from state-to-state, there are some basic provisions that the IRS will look for when you apply for 501(c)(3) exemption. It is important to customize the articles for your organization and make sure you meet the state and IRS requirements. Meeting these requirements from the start will help avoid having to make amendments later or risk getting your 501(c)(3) application rejected. Some states will also require you to publish your articles of incorporation, so be mindful of any deadlines and publishing instructions.

   Agency:	Kansas Secretary of State
   Form:	Form IA: Not-For-Profit Corporation Articles of Incorporation
   Filing Method:	Mail , fax, in-person, or online.
   Agency Fee:	$20 + optional $20 expedite fee
   Turnaround:	Immediately online. ~4 business days by paper. ~1 business day by paper with $20 expedite fee.
   Law:	K.S.A. §17-6002

5. File Initial Report

   After filing articles of incorporation, you must file an initial report.

   Not required

   
   
   

6. Obtain an Employer Identification Number (EIN)

   This unique, nine-digit number is assigned by the IRS to identify your nonprofit. All types of nonprofits will apply for an EIN, not only those that hire employees. You will use your EIN to open a bank account, apply for 501(c)(3) status, and submit 990 returns to the IRS.

   Agency:	Internal Revenue Service (IRS)
   Form:	IRS Form SS-4
   Filing Method:	Mail, phone, fax, or online.
   IRS fee:	$0
   Turnaround:	Immediately online or by phone. 4 business days by fax. 4-5 weeks by mail.
   Notes:	The IRS website is only available during certain hours. Print your EIN before closing your session. For additional guidance, see IRS Pub 1635: Understanding Your EIN.

7. Store Nonprofit Records

   As you launch your nonprofit, you will receive a number of official documents. Organizing these documents in one place will save you headaches down the road. You will soon have numerous items to keep in your records including your EIN letter, bylaws, meeting minutes, 501(c)(3) determination letter, and more.

   
   
   

   A great way to maintain necessary documentation is Records Manager, our software for storing records securely, tracking directors and officers, and getting notified of meetings.

8. Establish Initial Governing Documents and Policies

   Your bylaws are the governing document for your nonprofit. They serve as your organization’s operating manual and should be consistent with your articles of incorporation and the law. When your Board of Directors meets for the first time, you’ll review and ratify the bylaws and they will be a roadmap for governance from there.

   At the same time, you’ll also want to create and adopt a conflict of interest policy. A conflict of interest is when someone in a key position in your nonprofit has competing interests and is making choices that could benefit themselves to the harm of the organization. Personal interests should be set aside and organizational interests prioritized. If a conflict of interest does arise, it should be disclosed immediately.

   Your application to the IRS for 501(c)(3) exemption will require that both the bylaws and the conflict of interest policy are approved and adopted. Once they’ve been adopted, safely store them in your Nonprofit Records Kit.

9. Hold Organizational Meeting of the Board of Directors

   The initial organizational meeting of your Board of Directors will be incredibly productive. At this meeting you will approve the bylaws, adopt the conflict of interest policy, elect directors, appoint officers, and approve resolutions such as opening the organization’s bank account. Important decisions are being made so be sure to record them in the meeting minutes.

10. Get Kansas State Tax Identification Numbers/Accounts

    If your organization is required to pay Kansas tax, then you must register:

    Submit to:	Kansas Department of Revenue http://www.ksrevenue.org
    Form:	Form CR-16: Kansas Business Tax Application
    Filing Method:	Mail or online
    Fee:	The state fee varies based on the tax accounts / licenses required.

11. Apply for 501(c)

    Applying for 501(c) tax exemption can feel like the most daunting step in bringing your nonprofit dream into reality, but obtaining tax exemption comes with many benefits. You will be able to apply for grants and grow your fundraising success in addition to being exempt from IRS income tax. 501(c) is the chapter of the Internal Revenue Code that regulates nonprofit organizations. Like others, you may be most familiar with 501(c)(3) nonprofits, including charities and foundations. 501(c)(3) nonprofits apply using Form 1023 or Form 1023-EZ. Review the criteria for each application and make sure you meet the eligibility requirements set out by the IRS. Other types of nonprofits, including 501(c)(4)s and 501(c)(6)s, apply using Form 1024. After reviewing and approving your application, the IRS will return a Determination Letter officially recognizing your exemption.

    Completing the federal application for tax exemption is significantly easier with the assistance and support of a professional. Find someone with the expertise to ensure the correct application is being used and is completed accurately. A well-prepared application takes time, over 100 hours by IRS estimates, so put yourself on the path to success by finding a specialist to walk alongside you in the journey - from start to tax-exempt finish!

    Agency:	Internal Revenue Service (IRS)
    Form:	IRS Form 1023, IRS Form 1023-EZ, or IRS Form 1024
    Instructions:	IRS Instructions for Form 1023, IRS Instructions for Form 1023-EZ, or IRS Instructions for Form 1024.  Also see guidance IRS Pub 557: Tax-Exempt Status for Your Organization.
    Filing Method:	Mail
    Agency Fee:	$275 for organizations filing Form 1023-EZ and $600 for organizations filing Form 1023.
    Turnaround:	1023-EZ average: <1 month. 1023 average: 3-6 months.

    

    Tax-Exempt in 2 Weeks!

    Download the case study of how our client, Reform It Now, obtained 501(c)(3) tax exemption in only two weeks using the new IRS Form 1023-EZ!

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    Dr. Bob A.Reform It Now, Inc.

12. Apply for State Tax Exemption(s)

    With your IRS Determination Letter in hand, make sure you familiarize yourself with your state’s requirements for recognizing your nonprofit’s tax-exempt status. This is an area where requirements vary state-by-state. Many states issue their own tax-exempt certificate that can be used for sales and use tax purposes, but it may require application and periodic renewal.

    To file to obtain exemption from state income tax:

    Not required

    
    
    

    Your nonprofit is automatically exempt from Kansas income tax when you receive IRS income tax exemption.

    More information: Kansas Department of Revenue

    To file to obtain Sales and Use Tax Exemption:

    Agency:	Kansas Department of Revenue
    Form:	Online
    Agency Fee:	$0
    Notes:	Not all 501(c)(3) organizations are eligible for exemption. Use the online system to file for exemption.

13. Register for Charitable Solicitation (Fundraising)

    This is another area where laws differ from state to state, but most states require any nonprofit soliciting donations to register to do so on an annual basis. This means registering in the state prior to soliciting any resident of that state. Registering in your home state is essential, but you may also need to register other states depending on the scope of your organization.

    Kansas Charitable Organization Registration

    Agency:	Kansas Attorney General - Consumer Protection Division - Charitable Organization Registration Program
    Law:	Kansas Statutes Ann. § 17-1760 et seq.
    Foreign Qualification is Prerequisite:	No
    Registered Agent (Special Agency) Required?	No

    Automatic Exemption

    More Details

    Exemption Eligible Organizations:

    State educational institutions under the control and supervision of the state board of regents, unified school districts, educational interlocals, educational cooperatives, area vocational-technical schools, all educational institutions that are accredited by a regional accrediting association or by an organization affiliated with the national commission of accrediting, any foundation having an established identity with any of the aforementioned educational institutions, any other educational institution confining its solicitation of contributions to the student body, alumni, faculty and trustees of such institution, and their families, or a library established under the laws of Kansas Fraternal, patriotic, social, educational, alumni organizations and historical societies when solicitation of contributions is confined to their membership. This exemption shall be extended to any subsidiary of a parent or superior organization exempted by this subsection where such solicitation is confined to the membership of the subsidiary, parent or superior organization Persons requesting any contributions for the relief or benefit of any individual if the contributions collected are turned over to the named beneficiary, first deducting reasonable expenses for costs of banquets, or social gatherings, if any, provided all fund raising functions are carried on by persons who are unpaid, directly or indirectly, for such services Charities that raise less than $10,000 during a fiscal year and do not use professional solicitors Any incorporated community chest, united fund, united way or any charitable organization receiving an allocation from an incorporated community chest, united fund or united way A bona fide organization of volunteer firemen, or a bona fide auxiliary or affiliate of such organization, if all fund-raising activities are carried on by members of such organization or an affiliate thereof and such members receive no compensation, directly or indirectly Any charitable organization operating a nursery for infants awaiting adoption if all fund-raising activities are carried on by members of such an organization or an affiliate thereof and such members receive no compensation, directly or indirectly Any corporation established by the federal congress that is required by federal law to submit annual reports of such corporation's activities to congress Any girls' club which is affiliated with the girls' club of America, a corporation chartered by congress, if such an affiliate properly files the reports required by the girls' club of America and that the girls' club of America files with the government of the United States the reports required by such federal charter Any boys' club which is affiliated with the boys' club of America, a corporation chartered by congress, if such an affiliate properly files the reports required by the boys' club of America and that the boys' club of America files with the government of the United States the reports required by such federal charter Any corporation, trust or organization incorporated or established for religious purposes, or established for charitable, hospital or educational purposes and engaged in effectuating one or more of such purposes, that is affiliated with, operated by or supervised or controlled by a corporation, trust or organization incorporated or established for religious purposes, or to any other religious agency or organization which serves religion by the preservation of religious rights and freedom from persecution or prejudice or by fostering religion, including the moral and ethical aspects of a particular religious faith The boy scouts of America and the girl scouts of America, including any regional or local organization affiliated therewith The young men's christian association and the young women's christian association, including any regional or local organization affiliated therewith Any licensed medical care facility which is organized as a nonprofit corporation under the laws of this state Any licensed community mental health center or licensed mental health clinic Any licensed community center for people with intellectual disability and its affiliates as determined by the Kansas department for aging and disability services Any charitable organization of employees of a corporation whose principal gifts are made to an incorporated community chest, united fund or united way, and whose solicitation is limited to such employees Any community foundation or community trust to which deductible contributions can be made by individuals, corporations, public charities and private foundations, as well as other charitable organizations and governmental agencies for the overall purposes of the foundation or to particular charitable and endowment funds established under agreement with the foundation or trust for the charitable benefit of the people of a specific geographic area and which is a nonprofit organization exempt from federal income taxation Any charitable organization which does not intend to or does not actually solicit or receive contributions from more than 100 persons Any charitable organization the funds of which are used to support an activity of a municipality of this state The junior league, including any local community organization affiliated therewith Any charitable organization that is an animal shelter licensed pursuant to K.S.A. 47-1701

    Initial Registration

    More Details

    Form:	Charitable Organization Registration
    Filing Method:	Mail
    Agency Fee:	$25
    Turnaround:	4-6 weeks
    Notes:	The CFO and another authorized officer must sign. They must be two individuals. Notarization of signatures is not needed. Some Kansas counties and municipalities may require charities that solicit in-person to register prior to fundraising.
    Before you Apply:	Domestic Applicants: Check the available exemptions to see if your charity is eligible for exemption from the full registration requirement. If your charity meets the audit threshold, obtain an audited financial report to submit with your registration application. Look through the list of required attachments and make sure that you have each required document in hand before starting the registration application. Foreign Applicants: Check the available exemptions to see if your charity is eligible for exemption from the full registration requirement. If your charity meets the audit threshold, obtain an audited financial report to submit with your registration application. Look through the list of required attachments and make sure that you have each required document in hand before starting the registration application. If you will foreign qualify in Kansas, obtain a certificate of good standing from your home state to submit during the foreign qualification process. The certificate cannot be more than 90 days old when filing foreign qualification documents.
    How to Apply:	Domestic Applicants: File entity formation documents with the Secretary of State. Submit a Registration Statement for Solicitations and all required attachments to the Kansas Attorney General - Consumer Protection Division. Foreign Applicants: Determine whether or not your charity will need to foreign qualify based on your activity in Kansas. If not required, skip to number 3. File foreign qualification documents with the Secretary of State. Submit a Registration Statement for Solicitations and all required attachments to the Kansas Attorney General - Consumer Protection Division.
    Required Attachments:	IRS form 990 Audited financials (if applicable) Charitable Organization Financial Statement (if the charitable organization does not file a 990 or if the 990 is not available at the time of filing) List of officers and directors List of other states where registered to solicit

    Registration Renewal

    More Details

    Form:	Charitable Organization Registration (Renewal)
    Filing Method:	Mail
    Agency Fee:	$25
    Due:	Annually within 6 months after the close of your fiscal year. So if your fiscal year ends December 31, then renewal is due by June 30. There is no official start to the renewal period, so renewals may be submitted as soon as financials become available for the most recently completed fiscal year.
    Due Date Extension:	Due dates can be extended for 1 year beyond the original due date by mailing a renewal packet, including Form FS, to the charities office. IRS Form 990 should be submitted when it becomes available.
    Notes:	The CFO and another authorized officer must sign. They must be two individuals. Notarization of signatures is not needed.
    Required Attachments:	IRS form 990 Audited financials (if applicable) Charitable Organization Financial Statement (if the charitable organization does not file a 990 or if the 990 is not available at the time of filing) List of officers and directors IRS determination letter List of other states where registered to solicit

    Change of Fiscal Year

    More Details

    Form:	Charitable Organization Registration Statement for Solicitations (change of fiscal year)
    Agency Fee:	$25
    Notes:	Fiscal year can be changed during the standard renewal process.

    Cancellation

    More Details

    Notes:

    Kansas allows charities to simply let their registration expire but highly encourages a letter for the record stating that they wish to withdraw and are no longer soliciting. If soliciting took place in a partial fiscal year, the organization must file a final renewal.

    To fundraise nationally or online, please see our Fundraising Compliance Guide. Our services manage your initial, renewal, and exemption filings in every state.

14. Obtain Other Business Licenses & Permits

    Running your nonprofit corporation legally also means securing all applicable licenses and permits. The range of local, state, and federal requirements is wide. Access resources like the Small Business Administration Business License & Permit look-up tool and search by your business type and locality.

    Kansas nonprofits who wish to conduct bingo must register with Kansas Department of Revenue by filing Form BI-60: Kansas Initial Application for Bingo License ($25 state fee).

You’ve made it! You turned your passion into a legitimate nonprofit corporation exempt under IRS 501(c) and are benefiting your community. That solid foundation on which you built your organization requires ongoing maintenance. Investing in maintaining compliance with all of the government agencies is an ongoing responsibility and commitment needed to ensure your vision continues long into the future. Check out our compliance guide to learn more!

Once you have registered your nonprofit per the steps listed above, you will need to maintain compliance with all of the government agencies. Staying current with the IRS and state requirements is an ongoing responsibility. Continue reading our Kansas nonprofit compliance guide to learn more!

Continue reading "Kansas Nonprofit Compliance"

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