Outline
The California 3500 form is a crucial document for organizations seeking tax-exempt status in the state of California. This form, officially known as the Exemption Application, collects essential information about the organization, including its structure, activities, and financial data. To begin, organizations must provide their basic details, such as the California corporation number, federal employer identification number (FEIN), and contact information. Additionally, the form includes a series of questions that help determine the organization's eligibility for exemption. These questions cover various aspects, such as whether the organization is a foreign corporation, trust, or limited liability company (LLC), and whether it is currently recognized as tax-exempt by the Internal Revenue Service (IRS). The form also requires a narrative description of the organization's activities, outlining past, present, and future plans, which is vital for demonstrating how the organization fulfills its exempt purpose. Furthermore, financial data, including annual returns and compensation for officers, is necessary for the review process. Lastly, the form emphasizes the importance of providing complete and accurate information, as any missing documentation may delay or deny the exemption request. Understanding these components is essential for organizations aiming to navigate the complexities of California's tax-exempt application process successfully.
Sample - California 3500 Form
CALIFORNIA FORM
Exemption Application
3500
Organization Information
California corporation number/California Secretary of State file number FEIN
Name of organization as shown in the organization’s creating document Web address
Street address (suite, room, or PMB no.)
City State ZIP code
Telephone Second telephone Fax
Representative Information
Name of representative Email address
Street address (suite, room, or PMB no.)
City State ZIP code
Telephone Second telephone Fax
General Questions
Part I Organizational Structure
If the listed documents are not provided, the organization’s request for exemption will be delayed, or denied. Copies are acceptable.
1
Is this a foreign corporation? ........................................................................... 1
□ Yes □ No
See General Information F, Foreign Corporations.
2 Is this a trust?
Yes No
....................................................................................... 2
□ □
See General Information H, Trusts.
3 Is this a limited liability company (LLC)?
Yes No
.................................................................. 3
□ □
See General Information I, Limited Liability Companies.
a Is the parent organization a nonprofit organization? ................................................... 3a
□ □
Yes
No
If “Yes,” enter parent’s employer identification number (EIN)
___________________
If “No,” STOP, the LLC does not qualify for California tax-exempt status.
4
Are you currently tax-exempt with the Internal Revenue Service?
Yes
No
5
Are you applying for group exemption?
Yes
No
............................................... 4
□ □
................................................................... 5
□ □
See General Information L, Group Exemption.
Mail form FTB 3500 to: EXEMPT ORGANIZATIONS UNIT MS F120, FRANCHISE TAX BOARD, PO BOX 1286, RANCHO CORDOVA, CA 95741-1286.
Under penalties of perjury, I declare that I have examined this application, including accompanying schedules and statements, and to the best of my knowledge and belief, it is
true, correct, and complete.
DATE
SIGNATURE OF OFFICER OR REPRESENTATIVE
TITLE
7221213
FTB 3500 2021 Side 1
Organization name: __________________________ Corp number/CA SOS file number:
Part II Narrative of Activities
1 Was the organization’s California tax-exempt status previously revoked?
Yes No ......................................... 1 □ □
If “No,” the organization may qualify to file form FTB 3500A, Submission of Exemption Request. For more information, get form FTB 3500A.
2 Enter the California Revenue and Taxation Code (R&TC) section that best fits the organization’s purpose/activity
See the Exempt Classification Chart on page 6. .................................................. 2 R&TC Section 23701_____
3 Enter the date the organization formed
mm
/ dd
/ yyyy
......................................................... 3
/ /
4 What is the organization’s annual accounting period ending?
(must end on the last day of the calendar or fiscal year)
mm
/
dd
....................................................... 4
/
5 What is the primary purpose of the organization?
6 Is the organization currently conducting, or plan to conduct activities? Yes No
........................................... 6
□ □
If “Yes,” enter the date the activities began, or will begin
mm / dd / yyyy
...............................................
/ /
If “No,” explain why the organization is not planning any activities.
Side 2 FTB 3500 2021
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Organization name: Corp number/CA SOS file number:
7 Describe the organization’s past, present, and planned activities below. Do not merely refer to or repeat the language in the organizational
document. List each activity separately, in the order of importance based on the relative time and other resources devoted to the activity. Indicate
the percentage of time for each activity. Each description should include a:
Part II Narrative of Activities (continued)
a Detailed description of the activity, including its purpose and how it furthers the organization’s exempt purpose.
b Detailed description of when the activity was or will be initiated.
c Detailed description of where and by whom the activity will be conducted.
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FTB 3500 2021 Side 3
__________________________
Organization name: Corp number/CA SOS file number:
Part III Financial Data
1 a Has the organization filed the Form 199, California Exempt Organization Annual Information Return, for the current
and prior years?
Yes No
b Has the organization filed the FTB 199N, California e-Postcard, for the current and prior years? Yes No
We will review information reported on previously filed Form 199 to determine exemption eligibility. If the FTB 199Ns were filed or no returns were
filed, attach a detailed income and expense statement for the current year and three previous years. If you are not yet active, attach a proposed budget
covering the next four years.
Part IV Ofcers, Directors, and Trustees
1 List names, titles, and mailing addresses of all officers, directors, and trustees whether or not compensation is or will be paid. For each person
listed, state their total annual compensation, or proposed compensation, for all services to the organization, whether as an officer, employee, or
other position. Use actual figures, if available. Enter “none” if no compensation is or will be paid. If additional space is needed, attach a separate
sheet.
Name Title
Mailing Address
Compensation Amount
(annual actual or estimated)
2
Will any incorporator, founder, board member or other person(s) or entity:
a Share any facilities with the organization?
Yes No
b Rent, sell, or transfer property to this organization? Yes No
c Be compensated for services other than performing as a board member or employee?
Yes
No
..................................................................................... 1a
□ □
....................... 1b
□ □
................................................................. a
□ □
.......................................................... b
□ □
. .............................. c
□ □
Part V History
1
Has the organization been issued any previous California ID number?
Yes No
............................................. 1
□ □
2 Was this organization’s exemption previously revoked by the Internal Revenue Service? ............................... 2 □ Yes □ No
If “Yes,” enter date revoked
mm
/
dd
/
yyyy
..................................................................... / /
Part VI Fund Raising
1 Does or will the organization participate in fund-raising activities? ................................................ 1
□ Yes □ No
If “Yes,” check all the fund-raising programs the organization conducts, or will conduct.
□ Mail solicitations
Email solicitations
Personal solicitations
Vehicle, boat, plane, or similar donations
Foundation grant solicitations
□ Phone solicitations
Accept donations on the organization’s website
Receive donations from another organization’s website
Government grant solicitations
Other - Attach description
□ □
□ □
□ □
□□
Side 4 FTB 3500 2021
7224213
__________________________
Organization name: Corp number/CA SOS file number:
Part VII Specic Activities
1 Does the organization conduct any gaming activities (bingo, raffles, etc.) Yes No ........................................... 1 □ □
2 Does the organization lease property from others? ............................................................ 2 □ Yes No □
If “Yes,” attach copy of lease agreement.
3 Does the organization lease property to others? Yes No.............................................................. 3 □ □
If “Yes,” attach copy of lease agreement.
4 Does or will the organization publish, sell, or distribute any literature? Yes No
5 Does or will the organization own, or have rights in music, literature, tapes, artworks, choreography, scientific discoveries,
or other intellectual property?
Yes No
6
Does or will the organization accept contributions of real property, conservation easements, closely held securities, intellectual
property such as patents, trademarks, and copyrights, works of music or art licenses, royalties, automobiles, boats, planes, or
other vehicles, or collectibles of any type?
............................................. 4 □ □
............................................................................. 5
□ □
.................................................................... 6 □ Yes □ No
7 Does or will the organization operate outside of the United States? ................................................... 7 □ Yes No□
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FTB 3500 2021 Side 5
__________________________
Organization name: __________________________ Corp number/CA SOS file number:
............................................................ 1 □ □
....................... 1 □ □
.................................................................................... 2
□ □
........................................ 3 □ □
................................................................ 4
□ □
................. 2
□ □
...................... 1 □ □
..................................................................................... 2
□ □
........................................ 3 □ □
................................................................ 4 □ □
Side 6 FTB 3500 2021
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Schedule 1
Section A R&TC Section 23701a – Labor, agricultural, or horticultural organization
1 Are any services to be performed for members? Yes No
If “Yes,” explain.
2 Is the organization formed as a cooperative?
If “Yes,” provide a copy of the federal exemption letter showing exemption under IRC Section 501(c)(5)
Yes
No
Section B R&TC Section 23701b – Fraternal societies, orders, or associations, etc. (Lodge system with benets)
Operating under the lodge system means carrying on activities under a form of organization that comprises local branches called lodges, chapters, or
the like, that are largely self-governing and chartered by a parent organization.
1 Is the organization a college fraternity or sorority or a chapter of a college fraternity or sorority? Yes No
If “Yes,” college fraternities and sororities generally qualify as organizations described in R&TC Section 23701g.
For more information, get FTB Pub 1077, Guidelines for Social and Recreational Organizations. If R&TC Section 23701g
appears to apply, do not complete Section B. Go to Section G on Schedule 3, Social and recreational organization.
2 Does the organization operate, or plan to operate under the lodge system or for the exclusive benefit of the members of
the lodge system?
Yes No
3 Is the organization a subordinate of a national or state level organization? Yes No
If “Yes,” attach a certificate signed by the secretary of the parent organization certifying that the subordinate is a duly
constituted body operating under the jurisdiction of the parent body.
4 Is the organization a parent or grand lodge?
Yes No
5 Describe the types of benefits (life, sick, accident, or other benefits) paid, or to be paid, to members.
Section L R&TC Section 23701l – Fraternal beneciary societies, orders, or associations, etc. (Lodge system with no benets)
Operating under the lodge system means carrying on activities under a form of organization that comprises local branches (called lodges, chapters, or
the like) that are largely self-governing and chartered by a parent organization.
1 Is the organization a college fraternity or sorority, or a chapter of a college fraternity or sorority? Yes No
If “Yes,” college fraternities and sororities generally qualify as organizations described in R&TC Section 23701g.
For more information, get FTB Pub 1077, Guidelines for Social and Recreational Organizations. If R&TC Section 23701g
appears to apply, do not complete Section L. Go to Section G on Schedule 3, Social and recreational organization.
2 Does the organization operate or plan to operate under the lodge system or for the exclusive benefit of the members of
a lodge system?
Yes
No
3
Is the organization a subordinate of a national or state level organization?
Yes
No
4
Is the organization a parent or grand lodge?
Yes
No
__________________________ Corp number/CA SOS file number:Organization name:
□ □ □
□ □ □
□ □ □
□ □ □
□ □ □
..................... 2
□ □
....................................................... 3 □ □
............................. 4 □ □
................................................................. 5
□ □
.................................. 6a
...................................... 6b
..................................................... 6c
□ □
□ □
□
Schedule 2
Section D R&TC Section 23701d – Religious, charitable, scientic, literary, or educational organization
1 Check the box(es) below that best describes the organization.
Charitable
Synagogue
Church
T
emple
Mosque
Educational
School
Literary
Scientific
Religious
Credit Counseling
Testing for public safety
Hospital, Medical Center
Qualified sports organization
Prevent cruelty to children or animals
2 Has the organization received or expect to receive 10% or more of its assets from any organization or group of affiliated
organizations (affiliated through stockholding, common ownership, or otherwise), any individuals, or members of a family
group (brother or sister whether whole or half blood, spouse/RDP, ancestor or lineal descendant)?
Yes No
3 Does the organization attempt to influence legislation? Yes No
4 Does the organization support or oppose candidates in political campaigns in any way? Yes No
5 Does the organization hold, or plan to hold, 10% or more of any class of stock or 10% or more of the total combined
voting power of stock in any corporation? Yes No
6 a Does the organization operate as a church, mosque, synagogue, or temple? Yes No
If “Yes,” complete Schedule 2A, Churches.
b Is the organization’s main function to provide hospital or medical care? Yes No
If “Yes,” complete Schedule 2B, Hospitals.
c Is the organization a credit counseling organization? Yes No
If “Yes,” complete Schedule 2C, Credit Counseling Organizations.
□
7227213
FTB 3500 2021 Side 7
Organization name: Corp number/CA SOS file number: __________________________
□ □ □ □
................................................................. 2
□ □
.................... 3
□ □
.......................... 5
□ □
................................................... 6
□ □
................... 7
□ □
Schedule 2A – Churches
Complete Schedule 2A only if the organization answered “Yes” to Specific Section D, Question 6a.
1 Check the box that best describes the organization.
Church Mosque Synagogue Temple
2 Has a place of worship been established?
Yes No
If “Yes,” at what address? Who is the legal owner of the property? Other property use?
If “No,” explain where religious services are held.
3 Does the organization have a regular congregation or conduct religious services on a regular basis?
Yes No
If “Yes,” how many usually attend the regular worship services? How often are religious services held?
If “No,” explain.
4 Explain the background and training of the religious leaders.
5 Will income be received from incorporators, ministers, officers, directors, or their families? Yes No
If “Yes,” explain, including dollar amounts received.
6 Will any founder, member, or officer take a vow of poverty?
Yes No
If “Yes,” explain.
7 Will any founder, member, or officer transfer personal assets to this organization, like a home, automobile, furnishings,
business, or recreational assets, etc., that will be made available for the personal use of the donors? Yes No
If “Yes,” explain.
Schedule 2A Churches continued
Side 8 FTB 3500 2021
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__________________________Organization name: Corp number/CA SOS file number:
Schedule 2A – Churches (continued)
..................................................................................... 8
□ □
............................... 9
□ □
........................................... 10
□ □
............................... 11
□ □
8 Will any founder, member, or officer assign or donate income to the organization that will be used to pay their own
personal salary, living allowance, or that will result in any other personal benefit (such as food, medical expenses, clothing,
insurance, etc.)? Yes No
If “Yes,” explain.
9 Does the organization have a written creed, statement of faith, or summary of beliefs? Yes No
If “Yes,” explain.
10 Do the religious leaders conduct baptisms, weddings, funerals, etc.?
Yes No
If “Yes,” explain.
11 Does the organization ordain, commission, or license ministers or religious leaders?
Yes No
If “Yes,” describe.
7229213
FTB 3500 2021 Side 9
Organization name: Corp number/CA SOS file number:__________________________
................................................ 1 □ □
.................................................................... 2a □ □
....................................................................................... 2b □ □
......................................................................................... 3a □ □
......................................... 3b □ □
........................................... 4a □ □
......
4b □ □
.................................................................... 4c □ □
... 5a □ □
. ............... 5e □ □
.................... 6a □ □
............................... 6b
Schedule 2B – Hospitals
Complete Schedule 2B only if the organization answered “Yes” to Specific Section D, Question 6b. Attach a statement to explain any answers.
1 Are all the doctors in the community eligible for staff privileges? Yes No
If “No,” give the reasons why and explain how the medical staff is selected.
2 a Does or will the organization provide medical services to all individuals in the community who can pay for themselves
or have private health insurance? Yes No
If “No,” explain.
b Does or will the organization provide medical services to all individuals in the community who participate in
Medicare? Yes No
If “No,” explain.
3 a Does or will the organization require persons covered by Medicare or Medicaid to pay a deposit before receiving
services? Yes No
If “Yes,” explain.
b Does the same deposit requirement, if any, apply to all other patients? Yes No
If “No,” explain.
4 a Does or will the organization maintain a full-time emergency room? Yes No
If “No,” explain why the organization does not maintain a full-time emergency room. Also, describe any emergency
services provided.
b Does the organization have a policy on providing emergency services to persons without apparent means to pay?
Yes No
If “Yes,” provide a copy of the policy.
c Does the organization have any arrangements with police, fire, and voluntary ambulance services for the delivery
or admission of emergency cases? Yes No
If “Yes,” describe the arrangements, including whether they are written or oral agreements. If written, submit copies of
all such agreements.
5 a Does the organization provide for a portion of the organization’s services and facilities to be used for charity patients? Ye
s No
If “Yes,” answer question 5b through question 5e.
b Explain the organization’s policy regarding charity cases, including how the organization distinguishes between charity
care and bad debts. Submit a copy of the written policy.
c Provide data on the organization’s past experience in admitting charity patients, including the amounts expended for
treating charity care patients and types of services provided to charity care patients.
d Describe any arrangements with federal, state, or local governments or government agencies for paying for the cost
of treating charity care patients. Submit copies of any written agreements.
e Does the organization provide services on a sliding fee schedule depending on financial ability to pay? Yes No
If “Y
es,” submit the sliding fee schedule.
6 a Does or will the organization carry on a formal program of medical training or medical research? Yes No
If “Yes,” describe such programs, including the type of programs offered, the scope of such programs, and affiliations
with other hospitals or medical care providers with which the organization carries on the medical training or research
programs.
b Does or will the organization carry on a formal program of community education? Yes No
If “Yes,” describe such programs, including the type of programs offered, the scope of such programs, and affiliations
with other hospitals or medical care providers with which the organization offers community education programs.
□ □
Schedule 2B Hospitals continued
Side 10 FTB 3500 2021
7229213
Form Information
| Fact Name | Description |
|---|---|
| Purpose of Form | The California Form 3500 is an Exemption Application used by organizations to apply for tax-exempt status in California. |
| Governing Law | This form is governed by the California Revenue and Taxation Code, specifically sections related to tax-exempt organizations. |
| Eligibility Criteria | Organizations must meet specific criteria, such as being a nonprofit, to qualify for tax exemption. |
| Required Information | Applicants must provide detailed information about their organizational structure, activities, and financial data. |
| Submission Address | Completed forms should be mailed to the Exempt Organizations Unit at the Franchise Tax Board in Rancho Cordova, CA. |
| Review Process | The Franchise Tax Board reviews the submitted information to determine eligibility for tax-exempt status. |
| Potential Delays | Failure to provide necessary documents may result in delays or denial of the exemption request. |
Detailed Guide for Filling Out California 3500
Filling out the California 3500 form requires careful attention to detail. It is essential to provide accurate information about your organization and its activities. Make sure you have all necessary documents ready, as missing information can delay your application.
- Gather Required Information: Collect your organization's California corporation number or Secretary of State file number, FEIN, name, web address, street address, city, state, ZIP code, and telephone numbers.
- Complete Organization Information: Fill in the name of the organization as it appears in your creating document, along with the contact information.
- Provide Representative Information: Enter the name, email address, and contact details of the representative handling the application.
- Answer General Questions: Respond to questions regarding your organization’s structure, such as whether it is a foreign corporation, trust, or LLC. Be sure to provide details if applicable.
- Complete the Narrative of Activities: Describe your organization's past, present, and planned activities. Include details about when and where these activities occur and their purpose.
- Fill in Financial Data: Indicate if the organization has filed Form 199 or FTB 199N for the current and prior years. Attach income and expense statements if necessary.
- List Officers, Directors, and Trustees: Provide names, titles, addresses, and compensation details for all individuals in these roles.
- Provide History Information: Answer questions regarding any previous California ID numbers or revocations of exemption status.
- Detail Fundraising Activities: Indicate if the organization participates in fundraising and check all applicable methods.
- Complete Specific Activities Section: Answer questions about gaming activities, property leases, and contributions.
- Review and Sign: Ensure all information is accurate, then sign and date the form. Include the title of the officer or representative signing.
Once completed, mail the form to the Exempt Organizations Unit at the address provided. Make sure to keep a copy for your records. This submission is a crucial step in seeking tax-exempt status for your organization.
Obtain Answers on California 3500
-
What is the California 3500 form?
The California 3500 form is an exemption application used by organizations seeking tax-exempt status in California. This form is submitted to the Franchise Tax Board and requires detailed information about the organization, its structure, activities, and financial data.
-
Who needs to file the California 3500 form?
Any organization that wishes to obtain or maintain tax-exempt status in California must file the California 3500 form. This includes corporations, trusts, and limited liability companies (LLCs) that meet specific criteria for exemption.
-
What information is required on the California 3500 form?
The form requires a variety of information, including:
- Organization details such as name, address, and California Secretary of State file number.
- Information about the organization’s structure, including whether it is a foreign corporation, trust, or LLC.
- A narrative description of the organization’s activities, including past, present, and planned activities.
- Financial data, including annual income and expenses, and details about officers and trustees.
-
How does an organization demonstrate its tax-exempt purpose?
Organizations must provide a detailed narrative of their activities that shows how they further their exempt purpose. This includes a description of each activity, its purpose, and the resources allocated to it. The form also requires the organization to indicate the percentage of time spent on each activity.
-
What happens if the California 3500 form is incomplete?
If the form is incomplete or if required documents are not provided, the organization’s request for exemption may be delayed or denied. It is essential to ensure that all sections are filled out accurately and that any necessary attachments are included.
-
Can an organization apply for group exemption using the California 3500 form?
Yes, organizations can apply for group exemption on the California 3500 form. If an organization is part of a larger group, it must indicate this on the form and provide any additional documentation required to support the group exemption request.
-
What is the significance of the organization’s financial data?
The financial data provided on the California 3500 form is crucial for determining the organization’s eligibility for tax-exempt status. Organizations must report their income and expenses for the current year and the previous three years. If the organization has not yet started operations, a proposed budget for the next four years is required.
-
What should be done if the organization’s tax-exempt status was previously revoked?
If the organization’s tax-exempt status was previously revoked, it must provide the date of revocation on the form. The organization may need to provide additional information or documentation to demonstrate its current eligibility for tax-exempt status.
-
Where should the completed California 3500 form be sent?
The completed California 3500 form should be mailed to the Exempt Organizations Unit at the Franchise Tax Board. The address is:
Exempt Organizations Unit
MS F120, Franchise Tax Board
PO Box 1286
Rancho Cordova, CA 95741-1286
Common mistakes
Filling out the California Form 3500 can be a straightforward process, but there are common mistakes that applicants often make. Recognizing these pitfalls can help ensure that your application is processed smoothly and efficiently.
One frequent error is neglecting to provide necessary documentation. The form clearly states that certain documents must accompany the application. If these documents are missing, it can lead to delays or even denial of the exemption request. Always double-check that you have included all required copies, as incomplete submissions will hinder your application.
Another mistake involves misidentifying the organization’s structure. Applicants sometimes fail to accurately answer questions regarding whether they are a foreign corporation, a trust, or a limited liability company (LLC). Misclassification can lead to confusion and may affect the eligibility for tax-exempt status. It is vital to understand the nature of your organization before completing this section.
Inaccurate or incomplete answers to the general questions can also be problematic. For instance, stating that your organization is not currently tax-exempt with the IRS when it actually is can result in significant complications. Each question must be answered truthfully and completely to avoid future issues.
Furthermore, failing to provide a detailed narrative of activities is a common oversight. The form requires a comprehensive description of past, present, and planned activities. Simply repeating language from the organizational document is insufficient. Each activity should be explained in detail, including its purpose and how it aligns with the organization's exempt purpose.
Another area where applicants often falter is in the financial data section. It is crucial to ensure that all required financial information is accurate and complete. Missing or incorrect figures can raise red flags and delay the review process. Providing a detailed income and expense statement, as well as any proposed budgets, is essential for demonstrating financial accountability.
Lastly, applicants frequently overlook the importance of listing all officers, directors, and trustees accurately. This section requires the names, titles, and compensation details of all individuals involved with the organization. Omitting this information or providing inaccurate details can lead to complications in the approval process. Make sure to double-check this section for accuracy before submission.
By being mindful of these common mistakes, applicants can improve their chances of a successful and timely application process. Attention to detail and thoroughness are key to navigating the California Form 3500 effectively.
Documents used along the form
The California Form 3500 is an essential document for organizations seeking tax-exempt status in California. When completing this form, you may also need to prepare additional documents to support your application. Here are five common forms and documents often used alongside the California 3500 form, each serving a specific purpose in the exemption application process.
- Form FTB 3500A: This form is used for organizations that are already recognized as tax-exempt by the Internal Revenue Service (IRS) and are applying for California tax-exempt status. It simplifies the process by allowing organizations to submit a streamlined application.
- Form 199: The California Exempt Organization Annual Information Return, or Form 199, is required for most tax-exempt organizations to report their financial activities annually. Submitting this form helps demonstrate compliance with state regulations and is crucial for maintaining tax-exempt status.
- Form 199N: This is the California e-Postcard, a simplified version of Form 199 for smaller organizations with gross receipts under a specific threshold. It allows these organizations to fulfill their annual reporting requirements quickly and easily.
- Organizational Documents: These include the articles of incorporation, bylaws, and any amendments. These documents outline the structure and purpose of the organization, which is vital for establishing eligibility for tax-exempt status.
- Financial Statements: Detailed income and expense statements for the current year and the previous three years may be required. These statements provide insight into the organization’s financial health and support its claims for exemption.
Each of these documents plays a significant role in the exemption application process. Ensuring that you have all necessary forms and supporting materials ready can help streamline your application and increase the likelihood of a favorable outcome. It is important to review each requirement carefully and provide accurate information to avoid delays or potential denials in your application for tax-exempt status.
Similar forms
The California Form 3500 is an important document used by organizations seeking tax-exempt status. Several other forms share similarities with the California 3500 in terms of purpose and structure. Here’s a list of nine documents that are comparable:
- IRS Form 1023: This form is used by organizations applying for federal tax-exempt status under Section 501(c)(3) of the Internal Revenue Code. Like the California 3500, it requires detailed information about the organization’s structure, purpose, and activities.
- IRS Form 1024: This form applies to organizations seeking tax-exempt status under sections other than 501(c)(3). It also asks for information about the organization’s structure and activities, similar to the California 3500.
- California Form 3500A: This form is a simplified version of the 3500 for organizations that have already received federal tax-exempt status. It allows for a more straightforward application process in California.
- California Form 199: This is the California Exempt Organization Annual Information Return. Organizations must file this annually to maintain their tax-exempt status, providing financial data similar to what is requested in the financial sections of Form 3500.
- California Form 199N: Known as the California e-Postcard, this is a shorter form for smaller organizations. It requires basic information, akin to the organizational details requested in Form 3500.
- IRS Form 990: This is an annual reporting form for tax-exempt organizations, providing a detailed overview of finances and activities. It serves a similar purpose to the financial data section in Form 3500.
- California Form FTB 3501: This form is used to apply for a tax exemption for specific types of organizations, such as religious organizations. It shares some structural similarities with the California 3500.
- IRS Form 990-EZ: This is a shorter version of Form 990 for smaller organizations. It requires similar financial disclosures, paralleling the financial sections of the California 3500.
- California Statement of Information (Form SI-100): This form is required for corporations and limited liability companies in California. It collects basic organizational information, similar to the initial sections of the California 3500.
Each of these forms plays a crucial role in the process of maintaining or obtaining tax-exempt status, and they require organizations to provide detailed information about their structure, activities, and finances.
Dos and Don'ts
When filling out the California Form 3500, it is essential to follow specific guidelines to ensure a smooth application process. Below is a list of things you should and should not do.
- Do provide all required information accurately.
- Do ensure that the organization's name matches the name in the creating document.
- Do submit copies of necessary documents, as originals may not be required.
- Do check the appropriate boxes for questions regarding the organizational structure.
- Do include a detailed narrative of the organization’s past and planned activities.
- Do attach financial statements if the organization has filed Form 199 or FTB 199N.
- Do provide accurate compensation details for all officers and directors.
- Do mail the completed form to the specified address for the Exempt Organizations Unit.
- Do sign and date the form to validate the information provided.
- Do keep a copy of the submitted form for your records.
- Don't leave any required fields blank; incomplete forms may delay processing.
- Don't use abbreviations or acronyms that may confuse the reviewers.
- Don't submit the form without reviewing it for errors or inconsistencies.
- Don't provide vague descriptions of activities; specificity is crucial.
- Don't forget to explain why the organization is not planning any activities if applicable.
- Don't assume that previous exemptions guarantee approval; each application is reviewed independently.
- Don't ignore the requirement for additional documentation if the organization has a history of revocation.
- Don't submit the form without the necessary signatures from an authorized representative.
- Don't overlook the importance of deadlines for submission to avoid penalties.
- Don't hesitate to seek assistance if unsure about any part of the application process.
Misconceptions
- Misconception 1: The California 3500 form is only for nonprofit organizations.
- Misconception 2: You can submit the California 3500 form without any supporting documents.
- Misconception 3: Once you submit the California 3500 form, you will automatically receive tax-exempt status.
- Misconception 4: You cannot apply for tax-exempt status if your organization has previously been denied.
While the California 3500 form is primarily used by nonprofit organizations seeking tax-exempt status, it can also apply to certain other entities, such as trusts and limited liability companies (LLCs), under specific conditions. Therefore, it’s crucial to review the eligibility criteria before assuming that only nonprofits can use this form.
This is not true. The form requires various supporting documents to be included with the application. If these documents are missing, the request for exemption may be delayed or even denied. It's essential to gather all necessary documentation beforehand to ensure a smooth application process.
Submitting the form does not guarantee tax-exempt status. The Franchise Tax Board reviews the application and supporting materials thoroughly. If any discrepancies or issues arise, the application may be denied, or additional information may be requested. Therefore, it’s important to provide accurate and complete information from the start.
This is a common misunderstanding. Even if an organization has been denied tax-exempt status in the past, it can still reapply. However, it must address the reasons for the previous denial and demonstrate how it has rectified those issues. Persistence and careful attention to the application process can lead to a successful outcome.
Key takeaways
When filling out the California Form 3500, there are several important aspects to keep in mind to ensure a smooth application process. Here are key takeaways to consider:
- Provide Complete Information: Ensure that all sections of the form are filled out completely. Missing information can lead to delays or even denial of your exemption request.
- Document Submission: Include necessary documents as attachments. Acceptable copies of required documents can help substantiate your application.
- Organizational Structure: Clearly indicate whether your organization is a foreign corporation, trust, or LLC. This classification affects your eligibility for tax exemption.
- Tax-Exempt Status: If your organization is already tax-exempt with the IRS, be sure to indicate this on the form. This may streamline your application process.
- Narrative of Activities: Provide detailed descriptions of your organization’s activities. Be specific about how these activities align with your exempt purpose.
- Financial Data: Include information about your organization’s financial history. This includes previous filings and any income or expense statements if applicable.
- Signature Requirement: Remember that the form must be signed by an authorized officer or representative of the organization. This declaration affirms the accuracy of the information provided.
By following these guidelines, you can help ensure that your Form 3500 is completed correctly and submitted successfully.