Nonprofit Corporation Law in Pennsylvania
Pennsylvania nonprofits must comply with a number of federal and state laws pertaining to charities and tax exemption. The regulations set down in the Pennsylvania Code were developed as a result of corporate scandals, both for-profit and nonprofit, in the 1990s, which rocked the nation. They seek to ensure the ethical operation of charitable organizations and to protect the public from fraudulent activities committed in the name of charitable causes.
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Pennsylvania Code
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Chapter 41 of the Pennsylvania Code, titled "Nonprofit Corporations Generally," contains very basic regulations pertaining to the process and requirements for incorporating a nonprofit organization in the state. It provides a list of 27 broad purposes, such as athletic, benevolent, charitable, civic, cultural, educational, fraternal and health, for which a nonprofit may operate. It also sets down that one or more persons over the age of 18 may form a nonprofit and notes the benefits of listing appointed directors in the organization's articles of incorporation.
Solicitation of Funds
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The Solicitation of Funds for Charitable Purposes Act regulates the solicitation of funds and charitable contributions in Pennsylvania. To better address public awareness and protection, the Act requires that "there will be full public disclosure of the identity of persons who solicit contributions from the public, the purposes for which the contributions are solicited and the manner in which the solicitations are actually used." Nonprofits must register with the Department of State Bureau of Charitable Organizations.
Bureau of Charitable Organizations
207 North Office Building
Harrisburg, PA 17120
717-783-1720
dos.state.pa.us/charity
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Incorporation
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According to the Department of State Corporation Bureau's website, under Pennsylvania law, "every proceeding for the organization of corporations, both for-profit and nonprofit, and every ancillary transaction relating to such corporations is required to be filed with them." Nonprofit corporations must submit their articles of incorporation when filing for tax exemption.
Department of State Corporation Bureau
308 North Office Building
Harrisburg, PA 17120-0029
717-787-1057
dos.state.pa.us/portal/server.pt/community/corporations
Federal Taxes
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Nonprofits in Pennsylvania must apply for both federal and state tax exemptions. Failure to file for tax exemption in a timely manner could subject organizations to liability for taxes and fines.
To obtain Internal Revenue Service 501(c)(3) status, the organization must file Form 1023 with the IRS in Covington, Kentucky.
Internal Revenue Service
P.O. Box 12192
Covington, KY 41012-0192
1-800-829-1040
irs.gov
State Taxes
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The Institutions of Purely Public Charity Act calls for the Commonwealth of Pennsylvania to exempt charities from taxes. To obtain corporate and sales tax exemptions with Pennsylvania Department of Revenue, the organization must file Form REV-72.
Department of Revenue
Bureau of Business Trust Fund Taxes
Miscellaneous Tax Division
Dept. 280909
Harrisburg, PA 17128-0909
717-783-5473
Attorney General
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To help Pennsylvania organizations understand their responsibilities and the laws pertaining to nonprofits, the Commonwealth of Pennsylvania Office of the Attorney General, Charitable Trusts and Organizations Section has produced a handbook entitled "Attorney General Tom Corbett's Handbook for Charitable Nonprofit Organizations."
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References
- Pennsylvania Code: Chapter 41: Nonprofit Corporations Generally
- IRS: Tax Information for Charities and Other Nonprofits
- Pennsylvania Department of Revenue: PA Business Tax E-Services
- Attorney General: Handbook for Nonprofit Organizations
- Pennsylvania Department of State: The Institutions of Purely Public Charity Act
Resources
- Photo Credit Homeless dog in Kennel image by dinahr from Fotolia.com
