To maintain good standing in Pennsylvania, non-profits must complete initial registration, annual reporting, and, if applicable, charitable solicitation registration.
Failure to comply may result in fines or loss of operating rights.
Forming the Non-Profit: File Articles of Incorporation – Nonprofit with the PA Department of State to legally establish the organization.
EIN: Obtain an Employer Identification Number from the IRS for banking, hiring, and tax-exempt applications.
Charitable Solicitation (BCO-10): File the Charitable Organization Registration Statement if soliciting donations in PA.
Annual Report (2025 onward): Beginning January 1, 2025, non-profits must file a new Annual Report each year, replacing the old decennial filing.
Sales Tax Exemption (optional): Eligible 501(c)(3) groups may apply through PA’s myPATH system.
Tax Exemption Requirements
While forming a non-profit provides a legal structure, it doesn't automatically grant tax-exempt status. To gain exemption from federal and state taxes, you must meet specific requirements
Federal Tax Exemption: Apply to the IRS for 501(c)(3) status by filing Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code. Smaller non-profits may be eligible to file Form 1023-EZ.
State Sales Tax Exemption: You must apply for a separate sales tax exemption from the Pennsylvania Department of Revenue by submitting Form REV-72. Along with the application, organizations are required to include a copy of their IRS Form 990 or year-end treasurer's report, as well as a copy of their bylaws or article of incorporation and dissolution statement.
Property Tax Exemption: For non-profits that own real property in Pennsylvania and wish to claim exemption from property taxes, the requirements are governed by the Institutions of Purely Public Charity Act (10 P.S. § 371 et seq.). Organizations that receive or claim this exemption are required to file an annual report and a copy of their IRS Form 990 with the Department of State.
Financial Documentation Requirements: Organizations must provide articles of incorporation with specific language prohibiting private inurement, current financial statements, IRS determination letters, and recent Form 990 filings.
Unrelated Business Income Tax (UBIT): If your non-profit earns significant income ($1000+ gross) from activities unrelated to its exempt purpose, it must file federal Form 990-T and potentially PA Form RCT-101 (if PA taxable UBTI exceeds $100).
Filing Deadlines for Non-Profit Forms
Adhering to filing deadlines is essential to avoid penalties and maintain compliance.
Below are the key deadlines for non-profit filings in Pennsylvania:
Department of State Deadline
Articles of Incorporation
Nonprofit (DSCB:15-5306/7102) nitial filing, no specific deadline but typically filed after formation steps and before operations
5th day of the 11th month after the close of the organization's fiscal year.
Department of Revenue Deadline
Application for Sales Tax Exemption (REV-72) Renewal
Every 5 years for continued exemption
PA Corporate Tax Report (RCT-101)
If required (due to UBTI), the deadline is generally the 15th day of the 4th month following the close of the fiscal year (e.g., April 15 for calendar year filers). Extensions are available.
PA Sales/Use Tax Exemption (myPATH portal)
No fixed annual deadline; apply when eligible
Federal Deadlines
Form 990 Series
Due on the 15th day of the 5th month after the organization's accounting period ends Example: For calendar year organizations, Form 990 is due by May 15
Form 1023/1023-EZ
Must be filed within 27 months of incorporation to receive retroactive exemption to the date of incorporation
To operate legally as a non-profit in Pennsylvania, organizations must file the Articles of Incorporation with the Secretary of the State and pay the $125 filing fee.
Initial Registration
Define Your Mission and Choose a Name Draft articles and bylaws that support your charitable mission and IRS filing. Use SOS instructions for nonprofit articles.
Form a Board of Directors and Create Bylaws Form a board of directors to oversee the organization, ensure it fulfills its mission, and maintain financial health. In Pennsylvania, directors must be at least 18, serve one-year terms, and be elected annually. Create bylaws, required by both the IRS for tax-exempt status and the state for incorporation.
Publish Notice of Intent to Incorporate As highlighted earlier, Pennsylvania requires publication of your intent to file or the actual filing of Articles of Incorporation in two newspapers of general circulation, one of which must be a legal journal.
File Articles of Incorporation and Docketing Statement Submit your Articles of Incorporation – Nonprofit along with the New Entity Docketing Statement to the Pennsylvania Department of State. The filing fee for the Articles of Incorporation is $125. Online filing is an available option.
Register for Charitable Solicitation (BCO-10) Complete and submit the Form BCO-10 to the PA Department of State. This form requires several attachments, including your IRS Form 990 (or BCO-23 for smaller organizations), financial statements (as applicable), a list of officers and directors, and any professional fundraising contracts.
Annual Filing Requirements
Annual Charitable Organization Registration Renewal (BCO-10) The BCO-10 is not a one-time filing; it requires annual renewal. The renewal is due by the 15th day of the 11th month following the close of the organization's fiscal year. For example, an organization with a December 31st fiscal year end would have a renewal deadline of November 15th. The same BCO-10 form is utilized for this annual renewal.
The New Pennsylvania Annual Report (Effective 2025) A significant development in Pennsylvania's compliance landscape is the introduction of a new Annual Report requirement, effective January 1, 2025. This new annual filing replaces the previous decennial (every 10 years) report requirement for nearly all business and non-profit associations registered in Pennsylvania.
Combined Registrations Parent organizations can file combined registrations covering Pennsylvania affiliates, with fees based on combined gross contributions.
Maintain Compliance with IRS File the annual Form 990 series (990, 990-EZ, 990-N, or 990-PF) with the IRS. Failure to do so for three consecutive years can result in automatic revocation of federal tax-exempt status.
Keep Corporate Records Pennsylvania nonprofit corporations are legally required to maintain accurate and up-to-date corporate records in accordance with the Pennsylvania Nonprofit Corporation Law.
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1. How do I obtain Pennsylvania sales tax exemption?
Submit Form REV-72 to the Pennsylvania Department of Revenue with supporting documentation including articles of incorporation with required language, financial statements, IRS determination letter, and recent Form 990.
2. Can parent organizations file for their Pennsylvania affiliates?
Yes, Pennsylvania-based parent organizations can file combined registrations covering their affiliates. Each affiliate must still file a separate BCO-10 form and provide required documentation, but affiliates covered by combined registrations doesn’t need to pay separate registration fees.
3. Is Pennsylvania corporate net income tax exemption automatic with 501(c)(3) status?
Yes, upon obtaining your IRS Determination Letter confirming federal 501(c)(3) status, your organization is automatically exempt from Pennsylvania corporate income tax. No separate application is needed for this specific exemption.
4. What information is required on the annual report?
The following information is required on the annual report:
Business name
Jurisdiction of formation
Registered office address
Name of at least one governor (director, general partner, LLC manager or LLC member with material management responsibility, etc. depending on type of association)
Names and titles of the principal officers, if any
Address of the principal office
Entity number issued by the Pennsylvania Department of State
5. Who can sign the annual report on behalf of the association?
Annual reports must be “signed by the entity or association” (15 Pa.C.S. § 146(a)). The Department of State does not examine a document to determine whether the document has been signed by an authorized person or by sufficient authorized persons or otherwise is duly signed. 15 Pa.C.S. § 135(a)(7).
Sources and References
This resource guide is compiled from authoritative sources, including:
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