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Alabama State Filing Requirements for Non-Profits

Alabama non-profits must adhere to state filing requirements managed by the Alabama Department of Revenue (ADOR) and the Secretary of State.

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Required Non-profit Forms

State FormsFederal Forms (Required for State Compliance)
  • Alabama Business Privilege Tax Return (Form PPT) -This form is required for all non-profits conducting business in Alabama.
  • Alabama Corporate Annual Report (Schedule AL-CAR) -This schedule must be filed annually alongside the Business Privilege Tax Return.
  • Initial Business Privilege Tax Return (Form BPT-IN) -This form is due within two and a half months after incorporation or organization.

State Filing Requirements for Non-Profits

Non-profit organizations in Alabama must adhere to specific filing requirements to operate legally within the state. These include:

  • Initial Filing - Newly formed non-profits are required to file an initial return (Form BPT-IN) within two and a half months of incorporation or organization.
  • Business Privilege Tax (BPT) - All non-profits must file an annual Business Privilege Tax return, that is due on the same date as the corresponding federal income tax return. This tax is levied for the privilege of being organized or doing business in Alabama.
  • Tax Filings - If the organization has unrelated business income, it must file a corporate tax return.
  • Charitable Registration - Organizations that solicit charitable donations must register with the Alabama Attorney General’s Office under the Alabama Charitable Solicitations Act.
  • State Filing Requirements for Non-Profits

    Tax Exemption Requirements

    To maintain tax-exempt status in Alabama, organizations must:
    • Hold valid 501(c)(3) or other applicable federal tax-exempt status
    • Apply for Alabama sales tax exemption if applicable
    • Maintain compliance with state charitable organization regulations
    • Report any unrelated business income
    • Keep detailed records of all financial transactions and activities

    Where to File Alabama State Taxes

    Online Filing

    Online Filing

    The ADOR offers online filing options through My Alabama Taxes (MAT), which allows businesses and individuals to e-file, pay taxes, and manage tax accounts.

    Paper Filing

    Paper Filing

    While Alabama encourages e-filing, taxpayers can still mail paper returns to the ADOR. However, processing times may be longer for paper filings.

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    Filing Deadlines for Non-Profit Forms

    Staying on top of deadlines is crucial for non-profits to avoid penalties or loss of good standing.

    Below are the key deadlines for non-profit filings in Alabama:

    FormDeadline
    Form 20C (Corporate Income Tax Return)Due by the 15th day of the 4th month following the end of the fiscal year if the organization has unrelated business income.
    IRS Form 990Due by the 15th day of the 5th month after the fiscal year ends. Small organizations (gross receipts ≤ $50,000) must file Form 990-N by the 15th day of the 5th month.
    Form BPT-INDue within 2.5 months after the entity incorporates or organizes.
    Form PPT and Form AL-CARDue on the same date as the corresponding federal income tax returns. If this date falls on a weekend or holiday, the due date is extended to the next business day.
    Charitable Registration RenewalAnnually by the anniversary date of the initial registration.
    Annual Report (SOS)Due annually on the anniversary of incorporation.

    Registration & Annual Filing (Non-Profits)

    To maintain compliance, non-profits must register with the Alabama Secretary of State and the Attorney General's Office. The registration process includes:

    Initial Registration

    To operate as a non-profit in Alabama, organizations must:

  • Incorporate as a non-profit with the Alabama Secretary of State.
  • Obtain a Federal Employer Identification Number (EIN) and federal tax-exempt status from the IRS by filing Form 1023 or Form 1023-EZ.
  • Filing the Charity Initial Filing with the Attorney General's Office before soliciting contributions.
  • Annual Filing Requirements

    Failure to comply with these requirements may result in penalties or loss of good standing status.

  • File an Annual Report with the Secretary of State to maintain active status.
  • Renew charitable registration annually with the Attorney General’s Office if applicable.
  • File Form 990 with the IRS to report financial activities and maintain tax-exempt status.
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    Frequently Asked Questions

    1. What is the Business Privilege Tax?

    The Business Privilege Tax is a tax levied on entities operating in Alabama for the privilege of doing business in the state.

    2. Is it mandatory for all non-profits to register with the Alabama Department of Revenue?

    Yes, most non-profits operating in Alabama must register with the ADOR, even if they are exempt from state income tax.

    3. Do all non-profits need to file an NPO-1 form?

    Yes, all non-profit corporations registered in Alabama must file the NPO-1 annual report, regardless of their current activity level.

    4. How do I know if my non-profit needs to file Alabama Form 20C?

    Non-profits generating unrelated business income exceeding $1,000 must file Form 20C along with a copy of Federal Form 990-T.

    5. What is the penalty for late filing of Alabama Form 20C?

    Late filing of Form 20C may incur penalties and interest on unpaid taxes for unrelated business income.

    If you haven't submitted your 20C form on or before the deadline, the State of Alabama imposes a penalty of 10% of the tax due or $50, whichever is greater.