Nonprofit organizations in the state of Colorado are required to submit a Form 990 to the Internal Revenue Service (IRS). A tax form called the Form 990 contains details about the finances, management, and purpose of nonprofit organizations. Regardless of whether they are tax-exempt, all nonprofit organizations in Colorado with annual gross receipts of $200,000 or more must submit a Form 990 to the IRS.
Not all nonprofit organizations must submit a Form 990. Small nonprofits can submit a Form 990-N, often known as an e-Postcard, if their yearly gross receipts are less than $50,000. Form 990-EZ, a streamlined version of the Form 990, is available for nonprofits with yearly gross receipts between $50,000 and $200,000.
You must first select a name for your organization and submit articles of incorporation to the Colorado Secretary of State in order to establish a nonprofit organization in Colorado. Additionally, you’ll need to apply for tax-exempt status and get a federal tax ID number from the IRS. As soon as your group is established, you must keep up-to-date financial records and submit yearly reports to the Colorado Secretary of State.
You can lodge a complaint with the Colorado Secretary of State’s office if you have grievances about a nonprofit organization operating in the state. The complaint should be detailed about the alleged infractions and include any supporting documentation you may have. The Secretary of State’s office will look into the complaint and, if necessary, take the appropriate action. Additionally, which charity, non-profit organizations are required to undergo an independent audit, and by what authority?
Colorado law mandates that charitable nonprofits with yearly gross receipts of more than $750,000 undergo an independent audit by a certified public accountant. The audit and the organization’s yearly report must be delivered to the Secretary of State’s office in Colorado. In order to confirm compliance with federal and state standards, other charitable organizations could decide to voluntarily have an independent audit undertaken.
In conclusion, if a nonprofit organization in Colorado has yearly gross receipts of $200,000 or more, they must submit a Form 990 to the IRS. Simplified Form 990s or e-Postcards can be submitted by nonprofits with lower annual gross income. You need to submit articles of incorporation and apply for tax-exempt status in order to establish a nonprofit organization in Colorado. The Colorado Secretary of State’s office can be contacted with complaints regarding nonprofit groups. Charitable nonprofits must have an independent audit performed by a certified public accountant if their yearly gross receipts exceed $750.000.