The following guidelines provide background information on the most common types of filings and the related exemptions in Indiana.
In this state, charitable solicitation registration is not required as of October 16, 2019. Be sure to review other state registration and tax requirements and stay apprised of updates by visiting the applicable state agency’s website.
This state does not require organizations to post specific language when conducting charitable solicitations.
Depending on the type and volume of activities an organization has in this state, the organization may need to register as an out-of-state business (sometimes called a “foreign business”) with the secretary of state or another state agency.
Not every out-of-state organization needs to register. An attorney can assist the organization in determining whether its connections with this state are significant enough to trigger the foreign business registration requirement.
Examples of activities that might trigger this requirement include having employees physically located in the state, conducting programs in the state, and having an office in the state.
In this state, organizations that have received recognition of federal income tax exemption under IRC Sec. 501(c)(3) are automatically exempt from state income tax. Some organizations may choose to send a copy of their IRS determination letter to the state department of revenue to indicate the organization’s position that it qualifies for the exemption. Note that, although an organization may be exempt, if it has unrelated business taxable income (UBTI) that is subject to federal taxation, that UBTI also may be subject to state income tax. (Ind. Code § 6-3-2-2.8(1).) Consult with an accountant or attorney to confirm.
It is also important to consider whether applying for sales and use tax and property tax exemption would be appropriate for your organization. More information about state sales tax exemption can be found on the state Department of Revenue website, and more information about state property exemption can be found on the state Department of Local Government Finance website. An accountant or attorney can provide specific questions regarding your organization’s eligibility.
This state does not have a corporate franchise tax.
Foreign Business Registration (called “Certificate of Authority”): https://www.in.gov/sos/business/division-forms/business-forms/\
Indiana Department of Revenue Tax Forms and Exemption Applications: https://www.in.gov/dor/tax-forms/nonprofit-tax-forms/
Information Regarding Property Tax Exemption: https://www.in.gov/dlgf/8818.htm
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