How does my association get a tax exempt number?
Neighborhood Associations with gross receipts of $5,000 or less per year are not required to file Form 1023. These organizations are exempt automatically if they meet the requirements of I.R.S. Section 501(c)(3).

File Your Neighborhood Association's Articles of Incorporation with the State

  • Obtain an Employer Identification Number

  • File Internal Revenue Service (IRS) Forms 1023 and 8718 with appropriate fees

  • Receive Tax-Exempt Status from the IRS (average turnaround time from the time all necessary documents are filed is 100 days)

  • File for State Sales Tax Exemption

  • Make IRS suggested corrections

  • File for State Franchise Tax Exemption

  • Re-file

Important Facts About Tax-Exempt Status
Your Neighborhood Association may obtain tax exempt status if it is incorporated by the State as a non-profit corporation and organized solely for charitable purposes. This includes organizations dedicated to:

  • Correct community deterioration

  • Combat juvenile delinquency

  • Lessen neighborhood tensions

In order to keep your Association tax-exempt status, you must ensure that:
  • All assets are permanently dedicated to an exempt purpose. This means that, even upon dissolution of the group, all assets of the group must be used or donated

  • No part of the net earnings may be used for the benefit of, or be distributed to, the members or officers

  • No portion of the corporation’s assets or funds may be used to influence legislation, promote propaganda or benefit specific political candidates

Show All Answers

1. How do I know if my subdivision has an association?
2. How do I request a speaker for my next association meeting?
3. How can I increase participation at my HOA or NA meeting?
4. How do I start an association?
5. How does my association get a tax exempt number?