Expert: Harvey Mechanic - 4/20/2009

Question
We have just made some changes to our 501c3 bylaws incorporated in the state of California.  Do we need to send the approved bylaws somewhere to the state and if so how quickly and to where.

Answer
You should send those new bylaws within a reasonable time to the Franchise Tax Board if they indicate any substantial change in your operations.  Similarly to the IRS.

Certainly if there is any change in the operations of any IRS
approved 501(c)(3) organization, whether because of an amending
of its bylaws or otherwise, the organization may want to write to
the IRS to have them decide if there is any change to the
exemption status.

Exempt organizations' determination letters state that if its
mode of operation changes it should notify the IRS of the change
so that the IRS can determine the effect on its exempt status.
Your organization certainly can inform the IRS that it wants to
engage in those new activities and see what reply comes. You can
see that standard notification in the sample determination letter
at:
www.mcsb.us/Documents/IRS%20501c3%20Approval%200001.pdf
on page three under the heading "Notify Us On These Matters"

An exempt organization that is required to file an annual return
must report name, address, and structural and operational changes
on its return. Regardless of whether an organization files an
annual return, it may also report these changes to the EO
Determinations Office; however, such reporting does not relieve
the organization from reporting the changes on its annual return.

TIP: Attach copies of any signed or state certified articles of
incorporation, or association, constitution or trust instrument
or other organization document, or the bylaws or other governing
document showing changes. If signed or state certified copies of
a governing document are not available, an authorized officer may
certify that the governing document provided is a complete and
accurate copy of the original document.

Harvey Mechanic
Attorney at Law
Harvey108@hotmail.com