Official Site of The State of New Jersey

Is my nonprofit organization required to be incorporated?

No. While there are advantages to being incorporated, there also may be certain disadvantages, such as filing fees and annual filing requirements. Your organization needs to do research or talk to professional advisors concerning whether incorporation is advisable for your particular organization.

How does my nonprofit organization become incorporated?

To become incorporated in New Jersey, your organization needs to file a certificate of incorporation (and pay the fee) with the New Jersey Division of Revenue, Corporate Filings Unit (see resource list below). Religious organizations may want to contact the Corporate Filing Unit for information on Title 16 incorporation (certificate filed with the county and then with the State), which involves only a $25 State filing fee and no annual filing requirements.

One method for incorporating in New Jersey is to file (with the $75 fee) the Public Records Filing for New Business Entity form, which is in the New Jersey Complete Business Registration Package available from the Division of Revenue (see resource list below). If you use the form and plan on applying for IRC Section 501(c)(3) status with the IRS, the following guidelines should help you satisfy IRS requirements:

1. In the item labeled "Type of Business Entity" insert "NP";
2. In the item labeled "Business Purpose" include the 501(c)(3) purpose wording required by the IRS (see Chapter 3 of IRS Publication 557);
3. In the item labeled "Stock" make no entry;
4. In the item labeled "Management" list at least three trustees;

Directly below the item labeled "Additional Entity-Specific Information" insert "see attached 501(c)(3) requirements." On the attachment include the IRS-required restrictions such as those found in the Fifth Article of Draft A of the Sample Articles of Organization in IRS Publication 557 (see also detailed information in Chapter 3 of IRS Publication 557);

Below the item labeled "Domestic Non-Profit Corporations (Title 15A)" under "The method of distribution…" check the box for "As set forth herein:" and include the 501(c)(3) dissolution wording required by the IRS (see IRS Publication 557 and its Sample Articles of Organization, Draft A, Sixth Article).

Note: For information on Section 501(c)(3), (c)(4), etc. requirements, contact the Internal Revenue Service.

If your organization wants to incorporate in New Jersey by using the Sample Articles of Incorporation in IRS Publication 557, you must satisfy New Jersey requirements by adding certain provisions from the New Jersey Public Records Filing for New Business Entity Form. More specifically, include the registered agent, three trustees, incorporators, membership and other information, and signatures required by all the items from "Contact Information" through "Additional…Information" on the Public Records Filing for New Business Entity Form.

Is there a fee for becoming incorporated?

Yes. The New Jersey fee for filing to become incorporated as a nonprofit corporation is $75 (or $5 for religious organizations following Title 16 procedures).

If my nonprofit organization becomes incorporated, will it then need to obtain a New Jersey determination of exemption from New Jersey corporate income taxes?

If your organization is properly incorporated as and operated as a nonprofit corporation, your organization is exempt from the New Jersey corporation business tax without any exemption letter. (See Federal Tax-Exempt Status below for a discussion of exemption from Federal income tax.) However, the corporation may voluntarily obtain a letter of exemption. For details, contact the Regulatory Services Branch of the Division of Taxation (see resource list below).

If my organization incorporates, is there an annual renewal requirement?

Yes, except for religious organizations that follow special Title 16 incorporation procedures. The New Jersey Division of Revenue, Corporate Filing Unit will automatically send the annual filing form to the organization's registered agent. The annual filing form must be completed and returned with the annual filing fee. If your organization does not receive the annual filing form, it must obtain the proper form from the Corporate Filing Unit (see resource list below). Failure to file the annual forms and pay the annual fee for two consecutive years generally results in revocation of the corporate charter. Current Requirements

Is my organization required to obtain a Federal (IRS) determination of tax-exempt status?

To find out whether your organization is required to obtain Federal (IRS) tax-exempt status, study IRS Publication 557 or talk with an IRS representative (see resource list below).

A qualifying organization may find it wants the IRS determination letter of Section 501(c)(3) status, even when it is not required by the IRS. The 1998 IRS instructions for applying for Section 501(c)(3) status state:

"Section 501(c)(3) status provides certain incidental benefits such as:

• Public recognition of tax-exempt status.
• Advance assurance to donors of deductibility of contributions.
• Exemption from certain state taxes.
• Exemption from certain Federal excise taxes.
• Nonprofit mailing privileges, etc."

Also, your organization may want the IRS Section 501(c)(3) exemption letter to use to apply for exemption from State sales and use tax. (See NJ Sales and Use Tax Exemption below.)

How does an organization obtain an IRS determination letter of exemption?

You must obtain the proper application and related forms from the IRS (see resource list below). To apply for Section 501(c)(3) exempt status, you need to properly complete and file Federal Form 1023. To apply for exempt status under other sections of the Internal Revenue Code, you generally need to properly complete and file Federal Form 1024. For general information on Federal tax exemption, obtain IRS Publication 557. To help ensure that your organization timely receives the desired determination, you may want to complete the application under the guidance of a professional advisor.

Does the IRS charge a fee for applying for an IRS determination letter?

Yes. The IRS user fee Form 8718 and the appropriate fee must be included with your organization's Form 1023 or Form 1024 application. (Consult the IRS for details on the current fee schedule.)

Is my organization legally required to obtain a State of New Jersey determination of tax-exempt status?

Generally, no, except if your organization wants exemption from the New Jersey sales and use tax or petroleum products gross receipts tax. Also, your organization may be required to register with the New Jersey Charities Registration Section and, for raffles, 50/50s, etc., with the New Jersey Legalized Games of Chance Control Commission (see resource list below). Furthermore, if your organization needs a letter of exemption from the New Jersey corporation business tax, such as for a real property transaction, contact the Regulatory Services Branch (see resource list below.)

What types of organizations qualify for exemption from New Jersey Sales and Use Tax?

The following types of organizations are exempt under the New Jersey Sales and Use Tax Act, N.J.S.A. 54:32B-9(b):

• Exclusively religious, charitable, scientific, testing for public safety, literary or educational purposes;
• For the prevention of cruelty to children or animals;
• A volunteer fire company, rescue, ambulance, first aid, or emergency company or squad;
• Veterans’ organizations;
• An association of parents and teachers of an elementary or secondary public or private school.

What types of organizations do not qualify for exemption under the New Jersey Sales and Use Tax Act?

The following types of nonprofit organizations (non-501(c)(3) organizations) do not qualify for the exemption:

• Business associations and leagues, including chambers of commerce;
• Social or recreational clubs, including senior citizens’ clubs;
• Civic, community, homeowners’ or tenants’ associations;
• Fraternal organizations (except veterans’ organizations) including, but not limited to, Elks Lodges, Hibernian Orders, Kiwanis Clubs, Knights of Columbus Councils, Lions Clubs, Masonic Lodges, Moose Lodges, Odd Fellows Lodges, and Rotary Clubs;
• Labor unions;
• Political organizations;
• 501(c)(4), 501(c)(5), 501(c)(6), and 501(c)(7) organizations that are not a volunteer fire company, rescue or emergency, veterans’, or parent-teacher organization.

Although some non-qualifying organizations may participate in charitable or educational work, they do not qualify for a Sales Tax exemption because they are not exclusively charitable or educational organizations as required by IRC section 501(c)(3) and N.J.S.A. 54:32B-9(b).

How can a nonprofit organization apply for exemption from New Jersey Sales and Use Tax?

Organizations seeking an exemption from paying New Jersey Sales and Use Tax must complete a REG-1E application .

There is no fee to file the REG-1E application.

All pertinent information and supporting documentation must be provided, or your exemption certificate might be delayed or denied. We also may require additional documentation.

Where should I submit the REG-1E application?

The REG-1E and supporting documents can be submitted via upload, mail, fax, or email.

• Upload
• Mail: Exempt Organization Unit, PO Box 269, Trenton, NJ 08695-0269
• Fax: 609-292-8764
• Email: exemptorganization.taxation@treas.nj.gov

On the web link, click on Account Type and select Business Tax – Exempt Organizations. If you are uploading information, be sure to select PO Box 269 – NJ REG-1E Application in the PO Box drop-down menu. Please disregard any message referencing PO Box 266 as it does not apply to your organization.

Once your application is received, it will be assigned to a case reviewer and they will reach out to you using the email or mailing address you provided on the application.

How long does it take to process a REG-1E application?

REG-1E applications can take up to three (3) weeks to process. If additional information is required, processing time may take longer. To avoid delays, double check your application to ensure it is complete and all required documentation is provided.

Are we required to provide the Social Security Numbers of the organization’s responsible officers?

Yes. We cannot accept a REG-1E application without each officer’s Social Security Number. This information is required for tax filing purposes as it establishes the relationship between the organization and the officers who are legally responsible for the organization.

Can a digital signature be used on the REG-1E application?

Yes, electronic signatures can be used on the REG-1E application.

Can the REG-1E application be submitted without the IRS Determination Letter designating the organization as a 501(c)(3)?

If you submitted your application to the IRS for 501(c)(3) designation, you may still submit your New Jersey application without the IRS Determination Letter designating your organization as a 501(c)(3). However, your application cannot be processed until we receive the final copy of the IRS Determination Letter.

Incomplete applications will be kept on file for six (6) months. If the required documentation is not received within six (6) months, your application will be disregarded and you will have to start the application process over by resubmitting a new REG-1E along with the required documentation.

How do I request a status update after submitting the REG-1E application?

If you recently submitted a REG-1E application, wait three (3) weeks before contacting us for a status update. If it has been more than three (3) weeks and you still have not received the ST-5, you may contact us by phone or email to request a status update:

• Phone: 609-984-5739
• Email: exemptorganization.taxation@treas.nj.gov

A case reviewer will respond within five (5) business days.

Why did I receive a letter requesting more information?

Contact your case reviewer to determine why additional information is required. Your case reviewer’s contact information will be included with the correspondence sent to you (e.g., email or mailed letter).

If my organization files Form REG-1E to apply for Sales Tax exemption, does the organization also need to file the NJ-REG Business Registration form?

No. Form REG-1E can serve as a tax registration form. If, however, your organization has a business operation, you should review the "Taxes" section of the NJ-REG package to determine which tax liabilities your organization may have.

If your organization is starting to pay salaries, attach a prominent note to your application which will allow us to promptly notify the Client Registration Bureau.

Can my organization's Sales and Use Tax exemption be retroactive?

An organization’s Sales and Use Tax exemption can only be retroactive if the organization files Form REG-1E with us within six (6) months of the formation of the organization, in which case the exemption is effective as of the date of formation. Otherwise, the effective date for an organization's ST-5 is the date that we receive the organization's REG-1E application for exemption.

An exempt organization may request a refund of New Jersey Sales Tax paid on purchases delivered between the date of application and the date of receiving the ST-5 certificate.

Can my organization use an ST-4 Exempt Use Certificate or Certificate of Authority Form for exemption from Sales Tax as a nonprofit organization?

No. As a qualifying nonprofit organization, the proper proof of exemption is the ST-5 Exempt Organization Certificate.

Can my organization use a nonprofit sales tax exemption certificate from another state for exemption in New Jersey?

No.

What are the Sales and Use Tax exemptions provided by a valid ST-5 certificate?

The organization is exempt on purchases of goods, equipment, and services used for the organization's exempt purposes. Also, the organization is not required to collect Sales Tax on occasional fundraising sales or qualifying thrift store sales. For more information, download the Division of Taxation's Technical Bulletin TB-46, Exemptions for Organization Having St-5 Exempt Organization Certificate .

How do I request a replacement ST-5 or an updated ST-5 reflecting a name, address, or change in officer(s)?

You must complete a New Jersey Exempt Organization Request for Updated or Replacement ST-5 Form. The form can be found online at: New Jersey Exempt Organization Request for Updated or Replacement ST-5 .

If you are unable to upload the completed form and supporting documents, you may submit the information via fax, email, regular mail, or courier (other than USPS Express):

• Fax: 609-292-8764
• Email: exemptorganization.taxation@treas.nj.gov
• Mail: Exempt Organization Unit, PO Box 269, Trenton, NJ 08695-0269
• Courier: Exempt Organization Unit, 3 John Fitch Way 7th Floor, Trenton, NJ 08695-0269

If the form is submitted via fax or mail, you will not receive confirmation that the form was received and/or processed.

Allow a minimum of three (3) weeks for the form to be processed and a new ST-5 issued.

What should I do if I requested, but have not received, my ST-5?

If it has been more than three (3) weeks and you still have not received the ST-5, you may request a duplicate ST-5 by completing the New Jersey Exempt Organization Request for Updated or Replacement ST-5 Form .

Once the form is processed, your ST-5 will be mailed to the address we have on file.

Will my organization’s ST-5 expire?

No. However, your ST-5 will no longer be valid if your organization’s status has been revoked for any reason by the IRS or State of NJ, or you have made structural changes that disqualify the organization as a 501(c)(3).

I have an employee who lives in New Jersey. How do I apply for payroll taxes?

If you have an employee who lives in New Jersey and you only want to register to file and remit Employer Withholding (Payroll) Taxes, visit Division of Revenue and Enterprise Services Business and Employer Registration

Select the option “Register a non-New Jersey Business Entity with employees residing in New Jersey.”

Note that if you are only registering for Employer Withholding (Payroll) Taxes, you do not need to complete a REG-1E application.

How do I resolve business registration issues?

For assistance with business registration issues, visit the Division of Revenue and Enterprise Services (DORES) or contact them at 609-292-9292.

What is the registration process for charitable organizations?

For information regarding charity registration, visit the Division of Consumer Affairs or contact them at 973-504-6215.

How can a business change its address?

You can change the address for a business account either online or by filing a paper Form REG-C-L, Request for Change of Registration Information . Change an address online or to obtain a copy of Form REG-C-L.

Are there annual filings or renewals that my organization needs to remember?

Your organization has annual filing requirements with the State of New Jersey if: (1) your organization is incorporated or (2) your organization is required to register with the New Jersey Charities Registration Section. Also, your organization may need to file a Federal Form 990 or other forms with the IRS. For forms or detailed information on those filing requirements, contact the appropriate office (see resource list below).

Note: This is not a complete list of all annual filing requirements, which may include annual filings for employee withholdings, etc.

The ST-5 Exempt Organization Certificate does not need to be renewed. If, however, your organization has a name or address change or a merger, call or write to the New Jersey Division of Taxation or Division of Revenue to update your records and obtain a new ST-5 certificate (see resource list below.)

My organization annually files a Federal Form 990 return with the IRS. Do we need to send a copy to the New Jersey Division of Taxation?

No. However, you may need to file a copy with the New Jersey Charities Registration Section. For further information, contact the Charities Registration Section (see resource list below).

How does my organization obtain exemption from the New Jersey petroleum products gross receipts tax?

If your organization has the ST-5 Exempt Organization Certificate, a written purchase contract extending one (1) year or longer, and sales invoices meeting certain standards, your organization can use a Form PPT-5 for proof of exemption from the petroleum products gross receipts tax. To obtain information and Form PPT-5 (which does not apply to the New Jersey excise tax on motor fuels) contact: State of New Jersey, Division of Taxation, Excise Tax Branch, PO Box 189, Trenton, NJ 08695; or call 609-633-9057 Form PPT-5 is available on the Division's Web site, or by calling 1-800-323-4400.

If my organization wants to have a raffle, 50/50, or other game of chance fundraiser, do we need to obtain a special registration number?

To obtain information on the requirements for having game of chance fundraisers, contact the Legalized Games of Chance Control Commission (see resource list below).