Easy Steps To Protect your Alaska Nonprofit and Keep Your Nonprofit Compliant

As with any other business, there may be risks involved in running the nonprofit. Getting insurance for your nonprofit allows you to focus on your passion while minimizing your liability.

Here are some of the common types of insurance you may want to consider for your organization:

• General Liability Coverage
• Directors and Officers Coverage
• Social Service Professional Coverage

Your coverage needs will vary based on your organization and the work you do.

There will be times when you will be signing a document on behalf of your nonprofit. It is important that these times are easily distinguishable from when you are signing a document as an individual. If a document isn’t properly signed, you might suddenly find yourself personally responsible for something the organization should have been liable for.

To avoid such confusion we recommend you and all the members of your organization follow the following format:

• The official name of your nonprofit
• Your signature
• Your full legal name
• Your position in the organization

Nonprofits that have incorporated are required to maintain a registered agent with an office address in Alaska. If the agent or the office address changes, you must file 08-447 with the Department of Commerce, Community, and Economic Development to effect a change to the certificate of formation.

NOTE: Failure to do so may result in termination of the corporation.

Nonprofits are required to file an initial report to be submitted online or via mail within 6 months of the effective date of your organization’s creation.

Your organization will also be required to file a biennial report to be submitted online or via mail.

NOTE: Failure to file a requested report may result in the termination of the corporation.

As a nonprofit in the state of Alaska, your organization will need a general business license. You can file for your business license online.

If your nonprofit is a charity, and it will be soliciting charitable contributions, you must do the following:

• Register with the Alaska Department of Law.
• Obtain gaming permits (if applicable)
• Register with the Alaska Community Foundation to participate in the pick, click, give campaigns (if applicable)

If your organization will have employees you must register with the Alaska Department of Revenue - Child Support Services Division.

You can easily report this information online, by mail, or find the contact information for your local workforce commission on the Alaska Department of Revenue website.

Organizations that have been granted the 501(c)(3) status are required to disclose the following documents to the public when requested:

• Annual returns for 3 years after the due date (this includes returns like Form 990, 990-EZ, 990-PF, and any Forms 990-T)
• All Form 990 Schedules (except portions of Schedule B), attachments and supporting documents.
• Application of exemption and all supporting documents such as Form 1023
• The official paperwork from the IRS that shows that your organization has tax-exempt status.

The following do NOT need to be shared with the public

• Portions of schedule B of Form 990/990-EZ that identify the contributors. ( You only need to disclose the amount contributed and the nature of the contributions)
• Any unfavorable rulings such as an earlier denial of tax-exempt status.
• Any information the IRS has said you can withhold. This may include things like sensitive patents and trade secrets.

FAQ:

How long do I have to produce these documents if requested?

Ideally within the same day. If your organization doesn’t have an office or maintains limited hours during parts of the year, the information should be made available within two weeks.

Do I need to provide copies of the documents?

If someone asks for copies in person or in writing you must provide them with copies.

Can I charge for copies?

You can charge a reasonable amount for making copies of the documents requested.

NOTE: It may be easiest to have the documents available on your website so that anyone who requests copies can be sent to the site. This allows you to stay compliant without having to spend a lot of time dealing with document requests.

Most tax-exempt nonprofit organizations are required to file an annual return with the IRS (Check the list of exceptions).

Which form you should use to file the annual returns depends on the annual gross receipt amounts for your organization.

"Gross receipt" is defined by the IRS as “the total amounts the organization received from all sources during its annual accounting period, without subtracting any costs or expenses”

• For gross receipts ≤$50,000 --- File 990-N
• Gross receipts <$200,000 and total assets <$500,000 --- File 990- EZ
• Gross receipts >$200,000 or Total assets >$500,000 --- File 990

For any questions, you can call the IRS at

• (800) 829-3676 (Form-related questions)
• (800) 829-1040 (General information)

When is form 990 due?

You have a little over 4 months after your taxable year comes to an end to file Form 990. It is due on the 15th day of the 5th month. So if your taxable year ends on Dec 31st, your form 990 is due on May 15th.

NOTE: If your organization fails to file form 990 for 3 consecutive years, it will automatically lose its tax-exempt status.

If your Alaska organization has a gross income of ≥$1000 from a trade or business that is not related to the stated purpose of the organization, then it must file Form 990-T to pay tax on that income.

IRS - Information for Charities & Nonprofits

IRS - Required Provisions for Organizing Documents

IRS - 990 Series for Tax-Exempt Organizations

IRS - Applying for Tax-Exempt Status

IRS - 501(c)(3) Compliance Guide

Small Business Administration - License and Permits

Alaska Department of Revenue - Tax Division

State of Alaska Department of Commerce - Business License

Alaska Department of Law - Charitable Organization Registration

Alaska Department of Revenue - New Hire Reporting

Alaska Nonprofit Community Association Handbook