{"id":15565,"date":"2020-11-16T12:13:50","date_gmt":"2020-11-16T11:13:50","guid":{"rendered":"https:\/\/www.humanrightscareers.com\/?p=15565"},"modified":"2022-04-06T01:34:30","modified_gmt":"2022-04-05T23:34:30","slug":"how-to-register-an-ngo-in-the-united-states","status":"publish","type":"post","link":"https:\/\/www.humanrightscareers.com\/issues\/how-to-register-an-ngo-in-the-united-states\/","title":{"rendered":"How to Register an NGO in the United States"},"content":{"rendered":"<p>About 1.5 million NGOs are operating in the United States. These non-governmental organizations focus on a variety of issues such as healthcare, women\u2019s rights, economic development, and more. To conduct certain activities, an NGO must be registered. There are benefits to registration beyond avoiding legal troubles, such as signing contracts in the NGO\u2019s name and qualifying for certain financial assistance. How does the registration process work in the United States?<\/p>\n<p><strong>Take an\u00a0online course on <a href=\"https:\/\/coursera.pxf.io\/nonprofit-orgs\" target=\"_blank\" rel=\"noopener\">running a non-profit<\/a>\u00a0today!<\/strong><\/p>\n<h2><strong>First steps<\/strong><\/h2>\n<p>If you\u2019re part of a group that wants legal benefits like exemption from federal and state taxes, you\u2019ll need to formally incorporate and register as an NGO. Not a United States citizen? On the <a href=\"https:\/\/www.usa.gov\/start-nonprofit\" target=\"_blank\" rel=\"noopener noreferrer\">State Department\u2019s page<\/a> for NGOs, it states that individuals do not need to be citizens to create a new NGO. When you\u2019re beginning the process, structure is important. That includes <a href=\"https:\/\/www.humanrightscareers.com\/issues\/tips-choosing-a-great-ngo-name\/\">choosing a name<\/a> for your NGO. Because you want to incorporate your organization, you\u2019ll need a unique name that hasn\u2019t been claimed already. This is also the time to appoint a board of directors. With their help, draft the operating rules (the bylaws) of your NGO and decide what kind of legal structure the group should take &#8211; a trust, association, or corporation.<\/p>\n<h2><strong>Paperwork and tax exemption<\/strong><\/h2>\n<p>The next step is to file incorporation paperwork and apply for tax-exempt status. Registration requirements vary state by state, but it\u2019s usually not complicated. You\u2019ll need to write a short description of the organization, including its name, mission, and address of an agent in the state you\u2019re registering in. There\u2019s also a fee. Depending on what state you\u2019re in, some NGOs with religious, educational, or other charitable goals may need to also register with a state charity official. In most states, the process does not involve any kind of \u201capproval\u201d by a government authority. This is so authorities don\u2019t abuse their power and hinder NGOs with goals they don\u2019t like.<\/p>\n<p>Most <a href=\"https:\/\/www.humanrightscareers.com\/magazine\/human-rights-ngos-us\/\">NGOs in the US<\/a> qualify for federal and state tax exemption. Depending on the type of NGO and its activities, the kinds of benefits it can receive vary. Usually, NGOs that exclusively focus on religious, charitable, educational, literary, and nonpartisan goals can apply. To pursue this, you\u2019ll need to apply to the IRS. <a href=\"https:\/\/www.irs.gov\/businesses\/small-businesses-self-employed\/apply-for-an-employer-identification-number-ein-online\">The IRS<\/a> has instructions and guidelines on this process. This is also the time to get any necessary permits and licenses you need to operate.<\/p>\n<h2><strong>Foreign NGOs in the US<\/strong><\/h2>\n<p>The United States allows foreign NGOs to register in the country with a non-profit entity form. These NGOs are funded by foreign governments but work within the US for varied purposes. Some are nonpartisan, while others serve as a liaison on foreign policy to US organizations. It\u2019s common for foreign NGOs to fund and work alongside American NGOs. As long as these foreign NGOs register and file tax returns as required by law, they don\u2019t have to provide reports to other US federal government agencies. If the NGO wants to apply for tax exemption, the process is generally the same as for US NGOs. Foreign NGOs also need to apply for a license in whatever state they want to operate in.<\/p>\n<h2><strong>What to do if your tax exemption is revoked<\/strong><\/h2>\n<p>NGOs can lose their tax exemption. If they fail to file the required <a href=\"https:\/\/www.irs.gov\/forms-pubs\/about-form-990\" target=\"_blank\" rel=\"noopener noreferrer\">Form 990<\/a> series returns or notices for three years in a row, their status is automatically revoked. Luckily, you can apply for reinstatement. One option is to try and get the tax-exempt status retroactively reinstated. An NGO is only eligible if they\u2019ve not had their status automatically revoked before and if they submit a series of forms no later than 15 months after their Revocation Letter. This is known as \u201c<a href=\"https:\/\/www.irs.gov\/charities-non-profits\/charitable-organizations\/automatic-revocation-how-to-have-your-tax-exempt-status-reinstated\" target=\"_blank\" rel=\"noopener noreferrer\">Streamlined Retroactive Reinstatement<\/a>.\u201d There are three other options if an NGO doesn\u2019t meet the streamlined requirements. To avoid losing its tax exemption, an NGO needs to submit required returns to the IRS.<\/p>\n<h2><strong>After registration<\/strong><\/h2>\n<p>After an NGO registers, the US government doesn\u2019t involve itself in the NGO\u2019s mission. NGOs can recruit participants and don\u2019t need to notify any government agency about activities, membership, or outreach. NGOs are also free to work with foreign governments and NGOs. Some rules apply, such as not working with governments or individuals sanctioned by the US or any groups designated as a terrorist organization. NGOs are free to recruit foreign donors and work internationally.<\/p>\n<p>Under US law, NGOs have freedom of expression and association. That means NGOs can engage in nonpartisan political activities. If they take a partisan stance, an NGO may not qualify for tax exemption. Nonpartisan NGOs are still free to advocate for specific political issues and criticize the government. There are laws on issues like immigration, visas, campaign finance, and more, but NGOs are not held to a different standard than other organizations.<\/p>\n<p><strong>Take an\u00a0<a href=\"https:\/\/coursera.pxf.io\/nonprofit-orgs\" target=\"_blank\" rel=\"noopener noreferrer\">online course on running a non-profit<\/a>\u00a0today!<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":19,"featured_media":15568,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8805],"tags":[],"class_list":["post-15565","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-issues","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-50"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.3 (Yoast SEO v26.0) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ 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