Chapter 3 - Choosing a Structure - Non-Profit Formal Association

A non-profit corporation’s purpose is to engage in activities which do not provide financial profit to the benefit of its members. Such corporations must obtain non-profit or tax exempt status from the IRS and Indiana Department of Revenue to be free from certain tax burdens.

Note: Before filing or completing Articles of Incorporation, you should first contact the IRS. The IRS will recognize and provide tax exempt status to a nonprofit corporation only if it meets certain criteria and guidelines. The IRS publishes a booklet which is helpful in this process: "Tax Exempt Status for Your Organization" Publication #557. This publication can be viewed and downloaded here 

If you intend to apply for IRS federal tax exemption as a charitable organization, your articles of incorporation must contain a required purposed clause and a dissolution of assets provision. Valuable information on 501(c)(3) qualification is on the IRS website . It includes sample articles of the incorporation. Click the "Charities and Nonprofits" link and then the Life Cycle topic.

 

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