How does my association get a tax exempt number?
Steps for Obtaining Tax-Exempt Status
for Your Neighborhood Association

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 I.R.S. Forms 1023 & 8718 with appropriate fees.
• Receive Tax-Exempt Status from the I.R.S.? (average turnaround time from the time all necessary documents are filed is 100 days)
• File for State Sales Tax Exemption.
• Make I.R.S. 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 nonprofit 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 assets of the corporation may to exempt purposes or groups. Dissolution of the group and all assets must be used or donated, no part of the net earnings or
• 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.

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1. How do I start an association?
2. How do I find out if my subdivision has an association?
3. How does my association get a tax exempt number?
4. How do I request a speaker for my next association meeting?
5. How do I report a code violation?