1. Nonprofit Start-Up & Ongoing Compliance Checklist
Contact - Andrew Gray, CPA (561-886-5220)
agray@dbllp.com
Phase I - Start-Up
 Organizing Documents. The organization incorporates in the state of Florida as a nonprofit
corporation and prepares its bylaws to include the required Internal Revenue Service (IRS)
provisions.
 Employer Identification Number (EIN). The organization applies for an EIN in order to open a
bank account and begin to conduct business.
 Charitable Solicitation Registration. The organization registers with the Florida Department of
Agriculture and Consumer Services in order to solicit contributions in Florida. Depending upon the
organization's revenue, a fee may apply.
Phase II - Applying for Tax Exempt Status
 Requirements for Exemption. The organization must operate exclusively for charitable (exempt)
purposes and cannot operate for the benefit of private interests.
 Exemption Application. The organization prepares the exemption application to include applicable
attachments and disclosures. The application requires a plethora of information to include
financial, narrative regarding activities, and plans for appropriate nonprofit governance. A user fee
of $400 or $850 is assessed depending upon the level of expected gross receipts. It is noteworthy
that applications are open for public inspection.
 IRS Processing of the Exemption Application. Within approximately 30 days, the IRS will
acknowledge receipt of the application. The IRS may be able to process the application
immediately or may require more information. By way of a determination letter, exempt status
could be approved in as little as 60 days or longer depending upon IRS inquires or backlog.
 While You Wait. The organization can operate as a nonprofit organization prior to receiving its
determination letter. However, the organization must clarify to donors that the organization's
exempt status is pending. The determination will be retroactive to the date of incorporation so all
donations, during the time the application is pending, will be recognized as tax deductible. The
organization must file a Form 990 tax return while the application is pending.

2. Phase III - Approval and Ongoing Compliance
 Approval of Tax Exempt Status. Once the determination letter is received, the organization may
hold itself out as a 501(c)(3).
 Annual IRS Requirements. The organization must file Form 990, Form 990-EZ tax return, or the e-
postcard annually by the due date (May 15 for calendar year end organizations).
 Unrelated Business Income. The organization should regularly monitor its activities to determine if
unrelated business income classification may apply. A qualified CPA specializing in tax exempt
issues can assist in providing guidance.
 Significant Changes. If significant changes occur to the organization's mission, activities, and
revenue streams, etc. the organization should seek guidance on any additional reporting
requirements.
 Sales Tax Exemption. At this time, the organization may apply for a sales tax exemption in Florida.
For taxable purchases, the organization can present the certificate and be excluded from the
requirement to pay the sales tax. This is not an exemption to collect and remit sales tax for taxable
sales.