501(c)(3) Exemptions

IRS Required Language in the
Articles of Incorporation

In order for a nonprofit to qualify for the exemption its Articles of Incorporation MUST contain the following two provisions (with either the exact wording shown or something substantially similar).

"The exclusive purpose of this Corporation is to engage in charitable, educational and relgious activities as those terms are used in Section 501(c)(3) of the IRS Code and this Corporation shall not engage in activities that do not further one or more of those purposes (other than as an insubstantial part of its activities)"

AND

"Upon winding up and dissolution of the Corporation, the assets of the Corporation remaining after payment of all legitimate debts and liabilities shall be distributed to an entity recognized as exempt under section 501(a) of the IRS Code because it is described in section 501(c)(3) of that Code"