How to Start a Missouri Not for Profit Organization
The steps required to form a Missouri not for profit corporation and obtain tax exempt status can seem difficult and demands patience. Missouri not for profits provide many important community services and benefits and our attorneys are actively involved with many local churches, charities and other organizations that provide community services. Some examples of Missouri not for profit organizations are:
Food pantries
Parent-teacher associations
Charitable hospitals or other charitable medical providers
Alumni associations
Schools
Boys’ or Girls’ Clubs
Churches
Women’s shelters
Rescue Missions
The first step is to determine the purpose of the organization. The not for profit’s purpose must be for the public interest and common good. Those forming a new Missouri not for profit should analyze what they want to do, who they need to reach, and how they want to contribute to the community. A good mission statement, descriptive of what the organization is trying to accomplish, should be written. This will help guide the organization from its birth on through its growth and operation.
Once the Missouri not for profit has a specific purpose, it needs a unique name. The name cannot be the same as any other corporation on file with the Missouri Secretary of State’s corporations division. The Missouri Secretary of State’s Name Availability Desk (573) 751-3317 can verify the availability of a name. You can also verify the name online at http://www.sos.mo.gov. You can also complete an Application for Reservation of Name online at http://www.sos.mo.gov/forms.asp which will reserve your name for 60 days. However, this step isn’t necessary if you are ready to file your articles of incorporation.
At the current time, you cannot file articles of incorporation online in Missouri. The articles of incorporation formally names the entity, its purpose and provides how the organization is to be governed and operated. Once filed with the Missouri Secretary of State, a certificate of incorporation will be issued. If the not for profit is going to apply for 501(c)(3) status, specific language be used to describe the charitable purpose of the organization, and the requirements it must follow for exemption, so it is a good idea to obtain the assistance of an attorney and an accountant at this step in the process.
The not for profit will also need:
A Federal Employer Identification Number
Bylaws
A Board of Directors
A budget
A good record-keeping system
The Missouri not for profit is not automatically eligible for sales tax exemption status. This exemption allows purchases on office supplies, furniture, vehicles, computer equipment and other taxed items to be purchased without sales tax. An application (Form 1746 Rev. 10-98) must be completed and approved by the Missouri Department of Revenue. When completing the application, you will also need to supply a copy of your Certificate of Incorporation; a copy of your Bylaws; an estimated budget for one year; and a copy of your 501 (c) exemption letter from the IRS.
Forming a Missouri not for profit and applying for Federal and state tax exemptions is a difficult process, with many opportunities for mistakes. Hiring a lawyer to assist you with the process is a key step in proper formation of a not for profit. Please contact us if you have any questions about forming a Missouri not for profit organization.