Understanding the Legal Obligations and Responsibilities of Nonprofit Organizations in Colorado Springs

Before creating a new nonprofit organization in Colorado Springs, it is important to identify an unmet need in the community and ensure that there is no organization that serves the same cause. Doing so will give the organization credibility and legitimacy, as well as public confidence. It is also essential for those who organize and manage a non-profit organization to be familiar with applicable federal and Colorado laws regarding their obligations and responsibilities. Under the terms of the Nonprofit Organizations Act, a director's statement is an unlimited general obligation, but it does not need to be insured and can be accepted without reference to the financial capacity to make the reimbursement. Temporary inheritance is an undivided interest in a unit and an exclusive right of possession for a period of time that is repeated annually, as established in the deed.

Condominium documents must allow the creation of timeshare estates. If the organization qualifies for sales tax exemption, it will receive an exemption certificate authorizing it to purchase items and services used in the performance of its normal activities without paying state sales tax or local sales taxes administered by the state. The Colorado Charitable Requests Act regulates the request of funds by Colorado nonprofit entities. The Colorado Property Tax Division of the Colorado Department of Local Affairs is responsible for reviewing and determining whether a nonprofit organization's real and personal property is exempt from paying property taxes. The exempt organization can also avoid collecting sales tax for some sales it makes, but this exemption is strictly limited, and sales that exceed the exemption entail an obligation to collect sales tax from third parties. Upon its constitution, a nonprofit organization must promptly apply for federal tax exemption by filing IRS Form 1023 (Request for Recognition of Exemption) (or Form 1024 for organizations other than charitable, educational, or religious organizations).

Colorado organizations can apply for state sales tax exemption if they have a determination letter from the IRS. If there is another organization, consider working together as this may be a better way to make an impact in your community and use existing resources. Directors constitute the governing body of their not-for-profit corporation and are stakeholders in the purpose and success of their organization. In the case of a director, a board committee if they reasonably believe that it deserves trust can be accepted without reference to their financial capacity to make the reimbursement. Colorado also allows charitable organizations to be exempt from sales tax collected by the state for purchases they make in the course of their regular activities. While this law provides a great deal of flexibility to a non-profit organization with regard to its operation, it is important that those who organize and manage a non-profit organization are familiar with the law and the requirements and limitations it imposes on its organization and operation.

Colorado recognizes that an organization is exempt from state income tax if it has received a federal income tax exemption.