How to Get Tax-Exempt Status for a Nonprofit in Colorado Springs

If you're looking to create a 501 (c) (tax-exempt) organization in Colorado Springs, CO, there are certain criteria you must meet. To be eligible for tax exemption, the organization must be a religious, charitable, scientific, literary, or educational entity dedicated to public safety. It must also encourage national or international amateur sports competition, without providing sports facilities or equipment. After receiving the 501 (c) determination letter from the IRS, the organization will automatically be exempt from Colorado corporate tax. The first step to forming a 501 (c) organization is to create a non-profit corporation in Colorado.

The name of the corporation must be unique and not already registered with the Colorado Secretary of State. Additionally, it must adhere to the statutes of Colorado law and contain rules and procedures for holding meetings, electing officers and directors, and other corporate formalities. The statutes must also include provisions for the distribution of assets in the event of dissolution. In addition to filing with the Colorado Secretary of State, organizations must also check the licensing database of the Colorado Office of Economic Development and the Colorado Department of Regulatory Agencies for any necessary licenses or permits. A periodic report must also be submitted to the Colorado Secretary of State each year. Charitable organizations may be exempt from sales tax collected by the state for purchases made in the performance of their usual charitable functions and activities.

By following these steps and meeting all requirements, a nonprofit organization in Colorado Springs can obtain tax-exempt status.