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The following guidelines provide background information on the most common types of filings and the related exemptions in Kansas.
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In this state, religious organizations are automatically exempt from charitable registration requirements, regardless of the amount of annual contributions received. The religious exemption is not limited to IRS Form 990 Non-Filers, such as churches. Organizations that (1) do not use a professional fundraiser and (2) do not receive more than $10,000 in annual contributions are also exempt. The statute does not specify whether the $10,000 maximum is for total contributions or Kansas-source contributions only.
In this state, organizations which are required to register have the option of registering through the Unified Registration Statement, which is a standardized charitable registration form. Using the URS, rather than a state-specific registration form, has pros and cons. The URS typically must be submitted by mail. If the state has an online filing system, it may be more efficient to use that system, rather than complete and mail the URS manually. Additionally, states which require charitable organizations to submit annual reports often use information from the state-specific initial registration to auto-populate annual reports, saving an organization time in the future.
Some states require organizations to appoint a “registered agent” in the state as part of the organization’s charitable registration. This state does not currently have this requirement.
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 also need to register as an out-of-state business (sometimes called a “foreign business”) with the secretary of state or another state agency. These foreign business registration requirements are separate from the charitable registration. 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 which might trigger this requirement include having employees physically located in the state, conducting programs in the state, and having an office in the state. More information is available in the “Helpful Links” section below.
In this state, organizations which have received federal income tax exemption under Internal Revenue Code § 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 may be subject to state income tax (Kan. Stat. Ann. § 79-32,113(b)).
It is also important to consider whether applying for sales and use tax and property tax exemption would be appropriate for your organization. You can learn about applying for state property tax exemption through this guide from the Kansas Board of Tax Appeals and by reviewing Kansas state tax code § 79-201. More information about state sales and use tax exemptions is available in this guide Application for Sales Tax Exemption Certificates from the Kansas Department of Revenue. An accountant or attorney can provide specific answers to questions about your organization’s eligibility.
This state does not have a corporate franchise tax.
Lenny Best, JD
This resource contains general educational information related to legal concepts, but this information does not constitute legal advice. Anyone seeking legal advice is strongly encouraged to consult with a licensed attorney regarding any of the matters discussed herein. Although licensed attorneys work with Napa Legal, Napa Legal is not a law firm and does not undertake legal representation on behalf of any clients. Further, no licensed attorney working with or on behalf of Napa Legal agrees to undertake legal representation on behalf of any client unless the terms of such representation are set forth in a separate, written representation agreement.
