State and Local Filing Requirements of Tax-Exempt Organizations

Most tax-exempt organizations are aware that they must file an annual information return (Form 990) with the Internal Revenue Service and that they may be liable for tax on unrelated business income (Form 990-T). However, often overlooked by many tax-exempt organizations are state and local filing requirements. Here is a list of some that might apply:

  • Make sure your organization has filed its articles of incorporation, and any subsequent amendments, with the state’s Secretary of State. In addition, be sure that the information concerning your organization’s statutory agent be kept current with the Secretary of State.
  • Many states regulate public charities such as IRC Sec. 501(c)(3) nonprofit organizations and most states require that certain charitable organizations register with the state Attorney General in addition to an annual filing requirement.
  • Organizations that solicit contributions in Ohio may be subject to registration and annual filings pursuant to Ohio’s Charitable Organizations Solicitation Act. A nonprofit organization may be subject to charitable solicitation and reporting requirements in its particular city, as well.
  • If your organization conducts charitable gaming activities it may need to apply with the applicable state regulatory agency.
  • Most organizations are aware that they must file a Form 990-T to report the organization’s UBI. However, many states and cities have their own separate filing requirement for UBI.
  • If your organization sells merchandise, it may be subject to state sales tax filing requirements.
  • State Unclaimed Funds/Escheat laws require that organizations that hold unclaimed property (i.e. checks that have never been cashed, unclaimed accounts, etc.) for an extended period of time turn that property over to the state.

Email Rea & Associates for more information.

This article was originally published in Illuminations: Facts & Figures from people with a brighter way, a Rea & Associates enewsletter, 7/21/2009.

Note: This content is accurate as of the date published above and is subject to change. Please seek professional advice before acting on any matter contained in this article.