Understanding Beneficial Ownership Information (BOI) for Nonprofits

[@FoundationGroup]

If you need help filing for IRS 501(c)(3) status, we’d love to help. Fill out the form at bit.ly/3i6rFxz or give us a call at 888-361-9445.

[@knightconsultingllc]

Thank you for your information. I have an LLC and a nonprofit. In the beginning, I filed my LLC but was not required to file for my nonprofit with FinCen. Did something change that I missed that now the nonprofit filing is required? There was such poor communication from the Dept. of Treasury on this information.

[@MatthiasWill]

What about all the other 503 cs (4,6,7 etc)?

[@matthewdackers5903]

Exactly, I appreciate this channel and it would be nice to have more videos in-depth concerning other 501(c) organizations besides IRS Internal Revenue Code section 501(c)3 as it is the most common but certainly not the only type nonprofit. More videos informing about the others will be appreciated and very helpful as well. 😊

[@gregmcray]

@@matthewdackers5903 Hey, guys...thanks for your comments. First to Matthias: yes, the BOI rules I explain in the video apply similarly to other 501(c) orgs. As for Matthew's comment, we have produced videos on 501(c)(4), 501(c)(6), and 501(c)(7) orgs. You can find those in on our channel page. We'll be visiting issues regarding these "other" nonprofits in the near future. Thanks for being a part of our channel!

[@waynecmontgomery]

Other nonprofit categories are exempt as well as long as you have an approval letter from the IRS the only people who are NOT exempt are HOAs and you have 90 days to get a letter as of 2024 in 2025 that goes down to 30 days.

[@FoundationGroup]

Same rules apply to those as to 501(c)(3)s.

[@alyssaharris5943]

I incorporated March 2024 and applied for 501c3 in April. I've never heard of BOI reporting before watching your video so thank you for doing a video on it. I'm curious how I was supposed to know about BOI and that I was required to do it. Am I missing letters or emails from the IRS? Also, my business is a private school and we aren't getting any money yet. If the school opens in August, then it will be earning money. Do I need to do something with BOI even if the business isn't making any money?

[@FoundationGroup]

For the rules to be as stringent as they are, the rollout of this new requirement has been very poorly done. I'm not surprised that you didn't know. And, the IRS is not directly involved in BOI reporting, but instead it's the federal agency FinCEN. You didn't miss any letters or emails. However, you still need to get it done. Earning money or not has no bearing. You can register here: www.fincen.gov/boi .

[@dausume]

We incorporated literally at the start of the year and got blindsided with this requirement from LegalZoom notifying us when no one on the board has either enough money to get legal help, I paid what money I had to get help from LegalZoom on it and they didn’t actually help despite being paid to do so. So I went to the government organization and asked them questions directly through a chat. When I asked them specifically what I had to do to be exempt, spelled out exactly what our situation was and that we were not officially 501c3 yet, and that we were also basically inactive because we could not afford to do business yet, they stated that if we met the exemption definition of being inactive that we do not need to report anything. They mentioned nothing about a letter being required to be exempt and from what I could see none of the requirements in exemptions did either, where did that come from in the documentation?

[@FoundationGroup]

Hi, Dustin. Unfortunately, I don't agree with the counsel you got over the phone for two reasons. 1) Even though you might seek 501(c)(3) status down the road, you don't have it until the IRS grants it via what's called a Determination Letter. And BOI reporting rules apply to nonprofit entities that have not received official recognition of 501(c)(3) status. 2) I do not agree that your organization is "inactive". You just incorporated it. You may not be actively conducting your programs yet, but if you have an active status with your state's corporations division, then you are "active" for purposes of BOI. Always remember that the government is never liable for the truthfulness (or lack thereof) of guidance given over the phone. You need to deal with this by filing the BOI information or dissolve your new corporation, one or the other.

[@waynecmontgomery]

@@FoundationGroup Hey Greg, great answer, but I would refer people to the Law; 31 USC 5336 (xix) (i) it says exactly what you just said