Key Takeaways

  • Missouri nonprofit basics: You must incorporate with the Missouri Secretary of State before applying for federal 501(c)(3) status.
  • Naming and directors: Choose a compliant name and appoint at least three directors who will guide the nonprofit.
  • Articles of Incorporation: Missouri requires specific language, including purpose and dissolution clauses, to qualify for tax exemption.
  • Bylaws and policies: Create governing documents, including bylaws and conflict-of-interest policies, to demonstrate accountability.
  • State-level requirements: Nonprofits may need to register with the Missouri Attorney General for fundraising, and with the Missouri Department of Revenue for state tax exemption.
  • Federal tax exemption: Apply using IRS Form 1023 or 1023-EZ depending on revenue and asset thresholds.
  • Ongoing compliance: File annual reports with the Secretary of State, IRS Form 990-series returns, and maintain good standing to keep exemption.

The basics of how to start a 501(c)(3) in Missouri include incorporating your organization and making sure you are following the rules for tax-exempt entities. For example, you will need to choose a suitable name for your corporation and list an appropriate purpose.

Introduction to Missouri Nonprofits

The main difference between a for-profit and nonprofit organization is the people in control of the company. Generally, nonprofit organizations are controlled by directors who volunteer for the role. These directors have the authority to fire and hire staff, and will also be able to guide the actions of paid staff. Establishing a nonprofit entity is much harder than starting a for-profit organization. This is because the organizers of a nonprofit must gather a large group of people, whereas it takes only a single person to form most for-profit entities.

The general rule is that if a company earns money, it is required to pay taxes. Although some organizations can earn money while avoiding taxes if they have a limited purpose, you should create your nonprofit with the idea that if you earn any money, taxes will follow.

Nonprofit organizations that want to be exempt from taxes at both the state and federal levels should apply for 501(c)(3) status. To be eligible for this status, your nonprofit must exist for a specific purpose:

  • Charitable
  • Educational
  • Literary
  • Religious
  • Scientific

Before you start your nonprofit, you should research your community to see if your entity is actually needed. For example, if there are already numerous organizations with a purpose similar to your own, the market may not be able to support your nonprofit. While it is legal for you to establish an unincorporated nonprofit entity, you will have a very tough time achieving exemption from taxes. In addition, unincorporated organizations will find it very difficult to access grant money.

Every nonprofit organization needs a vision statement, which is a description of why the organization exists. Vision statements are different than mission statements, which are a description of how the entity will fulfill its vision. When starting your 501(c)(3) organization in Missouri, there will be numerous statements that you must add to your bylaws.

Steps to Incorporate a Nonprofit in Missouri

Before applying for federal tax-exempt status, you must first establish your nonprofit corporation with the Missouri Secretary of State. Incorporation provides your nonprofit with legal recognition and limits the liability of directors and officers. The main steps include:

  1. Choose a Name: Your nonprofit’s name must be distinguishable from other Missouri entities and should not mislead the public about your mission.
  2. Appoint a Board of Directors: Missouri requires at least three directors, all of whom must be adults.
  3. Prepare and File Articles of Incorporation: File with the Secretary of State and include:
    • The nonprofit’s name and principal office.
    • A specific charitable purpose aligned with IRS 501(c)(3) requirements.
    • A dissolution clause stating assets will be distributed for tax-exempt purposes if the organization dissolves.
  4. Pay Filing Fees: Missouri charges a modest fee for incorporation, which varies based on submission type (paper vs. online).

These steps create the legal foundation for starting a nonprofit in Missouri.

Filing for 501(c)(3) Status

When filing for 501(c)(3) status, you must pay a filing fee. You can find the necessary application for this by visiting the IRS website and locating Form 8718.

Form 1023, which you must file to receive tax-exempt status, requests a variety of information about your entities:

  • The history of your organization.
  • Your entity's finances.
  • The structure of your nonprofit.
  • The policies governing your organization.
  • Activities and operations.

Because Form 1023 is so complicated, you should consult with an experienced attorney before completing this document. If you are applying for tax-exempt status for a small nonprofit, you may be able to file the much easier Form 1023-EZ. In addition to being significantly shorter than the standard Form 1023, Form 1023-EZ can be filed online, which speeds up the approval process.

To be eligible to use Form 1023-EZ, your nonprofit's annual gross receipts cannot be more than $50,000. Additionally, your organization cannot have more than $250,000 in assets. Missouri 501(c)(3) organizations are exempt from sales taxes and the use/grant sales tax.

Before your organization can fundraise, you may need to file a registration with the Missouri Attorney General. Whether or not you need to register will depend on the activities in which your organization engages. In the majority of states, nonprofits that pursue donations must complete an annual registration. Before you can solicit any donations, you need to complete this registration.

Depending on the size of your nonprofit, you may need to register in both your home state and in any other state where you are planning fundraising activities. Nonprofit entities that own property may need to file additional paperwork. The tax assessor in your jurisdiction should be able to provide you with the correct forms. If your nonprofit is planning a direct mailing campaign, you can mitigate your costs by applying for a bulk mail permit with the post office.

When e-filing your tax returns, keep the following information in mind:

  • If you have more than $25,000 in gross receipts, you should file Form 990.
  • Entities whose gross receipts are under $25,000 should file Form 990-N.
  • Missouri requires nonprofits to file an annual report.

Annual Reports and Ongoing Compliance

After incorporation and receiving 501(c)(3) status, Missouri nonprofits must stay in compliance with both state and federal requirements. Key obligations include:

  • Annual Report: File with the Missouri Secretary of State to maintain good standing.
  • IRS Filings: File Form 990, 990-EZ, or 990-N annually depending on your nonprofit’s revenue.
  • State Tax Filings: Nonprofits that maintain employees must register for withholding tax and unemployment insurance with the Missouri Department of Revenue and Department of Labor.
  • Corporate Records: Maintain bylaws, minutes of board meetings, and conflict-of-interest policies to remain transparent and accountable.

Failure to comply with these requirements may result in penalties or revocation of tax-exempt status

Missouri State Tax Exemption and Fundraising Registration

In addition to federal 501(c)(3) recognition, you may also seek exemption from state-level taxes. The Missouri Department of Revenue provides exemptions for qualifying nonprofits from state sales and use taxes. To apply, submit Form 1746 with supporting documentation, including your IRS determination letter.

If your organization plans to solicit charitable contributions, you may also need to register with the Missouri Attorney General. Registration is generally required for organizations that use professional fundraisers, solicit donations across state lines, or raise above certain thresholds. This registration must be renewed annually.

Frequently Asked Questions

  1. How many directors are required to start a nonprofit in Missouri?
    Missouri requires at least three directors, all of whom must be individuals over 18.
  2. Do Missouri nonprofits need to register for fundraising?
    Yes, if you plan to solicit donations from the public or use professional fundraisers, you must register with the Missouri Attorney General.
  3. What state tax exemptions are available for Missouri nonprofits?
    Qualifying nonprofits may be exempt from sales and use taxes by applying with the Missouri Department of Revenue using Form 1746.
  4. Which IRS form should small Missouri nonprofits file for tax exemption?
    If your nonprofit has less than $50,000 in annual gross receipts and under $250,000 in assets, you can file Form 1023-EZ. Otherwise, use the full Form 1023.
  5. What annual filings are required to keep a Missouri nonprofit in good standing?
    You must file an annual report with the Secretary of State and IRS Form 990-series returns each year.

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