Alabama Nonprofits
Registration, Tax Exemption, and Annual Report Filing Requirements
Alabama Nonprofits - A Guide to Registration and Tax Compliance
To start and operate a nonprofit organization successfully, it is essential to have a clear understanding of the guidelines and requirements established by the respective state agency.
Here, you can learn how to register a nonprofit in the state of Alabama, understand the annual filing requirements for nonprofits in Alabama, and more.
| Requirements |
Registration
|
Annual Filing
|
||
|---|---|---|---|---|
| With the State of Alabama | With the Attorney General | Charity Annual Renewal | Nonprofit Filing Requirements | |
Required Forms |
Certificate of Incorporation | Charity Initial Filing | Renewal Statement with IRS Form 990 attached / Written copy of financial statement. | File Form 20C with a Copy of Form 990-T to report unrelated business income |
Due Date |
Organizations must register before they begin soliciting any contributions. |
Within 90 days following the end of the accounting period. | The 15th day of the 6th month following the end of the accounting period. | |
Filing Fee |
$200 | $25 | $25 | N/A |
Frequently Asked Questions
How to Start a Nonprofit in Alabama?
To start a nonprofit in the State of Alabama, you must follow these registration procedures.
Registration with the Office of the Secretary of State
To register your nonprofit in Alabama, you need to submit the organization's name and a Certificate of Incorporation to the Secretary of State's Office.
Typically, this submission must include the following information:
- Basic information about the organization, such as Name and Address
- Purpose of formation
- Details of the incorporators (at least one)
- Details of the registered agent, i.e., the designated point of contact person (with a mailing address in Alabama) for your organization regarding tax-related matters.
In addition to the information above, you’ll need to pay the incorporation filing fee of $200 and indicate your payment method on the form.
Registration with the Alabama Attorney General’s Office
Alabama law mandates that charitable organizations soliciting contributions must complete the Charity’s Initial Filing and pay a $25 registration fee. However, specific exemptions apply, such as for educational, religious, and political organizations. For further details, click here.
Note : All organizations must complete this registration before they begin soliciting contributions.
How do you obtain tax-exempt status from the State of Alabama?
If your nonprofit has obtained 501(c) tax-exempt status from the IRS by submitting either Form 1023 or 1024, your organization will be automatically qualified as tax-exempt with the State of Alabama. The state doesn’t require you to submit a separate application to qualify as an exempt organization.
This means your organization will be exempt from both federal and state income taxes.
What are the annual filing requirements for nonprofits in Alabama?
As per the Alabama State Law, corporations that are exempt under 26 U.S. Code § 501 aren’t required to file corporate income tax returns with the state.
However, the state requires charitable organizations to complete their annual renewal in order to remain tax-compliant. Therefore, your organization must complete the following:
- Submit Charitable Organization Renewal Statement
- Attach a copy of your federal Form 990
- Pay a renewal fee of $25.
Furthermore, if your nonprofit has an unrelated business income of $1000 or more, you must submit Form 20C along with a copy of Federal Form 990-T
When is the Deadline for Charitable Organization Annual Renewal and Form 20C?
Annual Renewal Deadline:
In Alabama, charitable organizations are generally required to renew annually within 90 days of the accounting period's end. If your organization follows the calendar tax year, the deadline for Alabama's annual renewal is March 31.
If you need more time for renewal, you can request an extension of up to 180 days at https://ago.igovsolution.net/online/UserRegistrations/Business_Login.aspx
Form 20C Deadline:
Additionally, organizations obligated to file Form 990-T must submit Form 20C (along with the 990-T copy) by the 15th day of the 6th month. For calendar filers, the deadline is June 15.
If this deadline falls on a weekend or a federal holiday, you must submit 20C on the next business day.
Are there any penalties for Non-Renewal?
Yes! If your charitable organization fails to complete the annual renewal and is involved in unlawful charitable solicitation, a penalty of up to $5000
will be imposed.
If your organization isn’t willing to renew for the year, you can submit a NOTICE OF NON-RENEWAL to the State of Alabama.
Penalties for not filing Form 20C
If you haven’t submitted your 20C form on or before the deadline, the State of Alabama imposes a penalty of 10% of the tax due or $50, whichever is greater.
Also, if you fail to pay any associated taxes by the original due date, you will be subjected to a penalty of 1% per month for each unpaid month or part of the month, up to 25%.
How do I file a renewal Form with the state of Alabama?
You can submit your annual renewal statement online through the web application offered by the Alabama Attorney General’s Office.
You can also complete the statement on paper and send it to the below address:
Post Office Box 300152,
Montgomery, Alabama, 36130-0152.
How to file Form 20C?
You can complete Form 20C and mail it to the State of Alabama along with Form BIT-V (payment voucher) to pay any taxes due. However, if the tax payment is $750 or more, you must pay them electronically. Here is the mailing address:
Mail returns with payments and payment vouchers to:
Income Tax Administration Division,
Corporate Tax Section,
P.O. Box 327435
Montgomery, AL 36132-7435
Article Sources:
- Certificate of Incorporation - Registration of Nonprofit with the Alabama Office of the Secretary of State
- Charity Initial Filing - Charity Initial registration filing with the Alabama Office of Attorney General
- Renewal Statement - Annual renewal form for charitable organizations.
- Form 20C - Alabama Consolidated Corporate Income Tax Return