Blank California 3500 PDF Form

Blank California 3500 PDF Form

The California 3500 form is an exemption application used by organizations seeking tax-exempt status in California. This form requires detailed information about the organization, including its structure, activities, and financial data. Completing this form accurately is essential for organizations to secure their tax-exempt status; start filling it out by clicking the button below.

The California 3500 form serves as an essential application for organizations seeking tax-exempt status in the state. It requires detailed information about the organization, including its structure, activities, and financial data. Applicants must provide their California corporation number or Secretary of State file number, as well as their Federal Employer Identification Number (FEIN). The form also collects contact information for a designated representative, ensuring clear communication throughout the exemption process. Key sections of the form address the organizational structure, asking whether the entity is a foreign corporation, trust, or limited liability company. Additionally, it inquires about the organization's current tax-exempt status with the Internal Revenue Service and whether it is applying for group exemption. The narrative portion of the application requires organizations to outline their past, present, and planned activities in detail, emphasizing how these activities align with their exempt purposes. Financial data, including previous filings and compensation for officers, directors, and trustees, must also be disclosed. Lastly, the form includes questions about fundraising activities and any specific operational plans, such as leasing property or conducting gaming activities. Completing the California 3500 form accurately is crucial, as incomplete submissions can lead to delays or denials in obtaining tax-exempt status.

Document Sample

 

 

 

 

 

 

 

 

CALIFORNIA FORM

 

 

 

 

 

 

 

 

Exemption Application

 

 

 

 

3500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Organization Information

 

 

 

 

 

 

 

California corporation number/California Secretary of State file number

FEIN

 

 

 

 

 

 

 

 

 

 

Name of organization as shown in the organization’s creating document

 

Web address

 

 

 

 

 

 

 

 

 

Street address (suite, room, or PMB no.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

City

 

 

 

State

 

ZIP code

 

 

 

 

 

 

 

 

 

 

Telephone

 

Second telephone

 

Fax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Representative Information

 

 

 

 

 

 

 

Name of representative

 

Email address

 

 

 

 

 

 

 

 

Street address (suite, room, or PMB no.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

City

 

 

 

State

 

ZIP code

 

 

 

 

 

 

 

 

 

 

Telephone

 

Second telephone

 

Fax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General Questions

 

 

 

 

 

 

 

Part I

Organizational Structure

 

 

 

 

 

 

 

If the listed documents are not provided, the organization’s request for exemption will be delayed, or denied . Copies are acceptable .

1

.Is this a foreign corporation?

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

.. .Yes. . 1

No

 

 

See General Information F, Foreign Corporations .

 

 

 

 

2

Is this a trust?

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Yes

No

 

See General Information H, Trusts .

 

 

 

 

3

Is this a limited liability company (LLC)?

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

.. Yes. . .

□. .No

 

See General Information I, Limited Liability Companies .

 

 

 

 

a Is the parent organization a nonprofit organization? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Yes. . .. No. . . . . . .

If “Yes,” enter parent’s employer identification number (EIN) ___________________

If “No,” STOP, the LLC does not qualify for California tax-exempt status .

4 Are you currently tax-exempt with the Internal Revenue Service? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes. . . .. No. . . . . . .

5 Are you applying for group exemption? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes. . . . . 5No See General Information L, Group Exemption .

Mail form FTB 3500 to: EXEMPT ORGANIZATIONS UNIT MS F120, FRANCHISE TAX BOARD, PO BOX 1286, RANCHO CORDOVA, CA 95741-1286 .

Under penalties of perjury, I declare that I have examined this application, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete.

DATE

SIGNATURE OF OFFICER OR REPRESENTATIVE

TITLE

7221213

FTB 3500 2021 Side 1

If “No,” explain why the organization is not planning any activities .

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Organization name: __________________________

Corp number/CA SOS file number:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Part II Narrative of Activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

Was the organization’s California tax-exempt status previously revoked?

. . . . . . . . . . . . . . . . . . . . .

. . . . . . .

. . . Yes. .

.

.. No. . . . . 1

 

If “No,” the organization may qualify to file form FTB 3500A, Submission of Exemption Request . For more information, get form FTB 3500A .

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

Enter the California Revenue and Taxation Code (R&TC) section that best fits the organization’s purpose/activity

 

 

 

 

 

 

 

 

 

 

 

 

See the Exempt Classification Chart on page 6

. . . . . . . . . . . . . . . . . . . . .

. . R&TC. . . . Section. . . . 23701. . . .

. . 2

 

 

 

 

 

 

 

 

 

 

 

 

 

3

Enter the date the organization formed

. . . . . . . . . . . . . . . . . . . . .

. . . . . ./ .

. .

. / . .

. . . . . . 3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

mm /

dd

/

 

yyyy

4What is the organization’s annual accounting period ending?

(must end on the last day of the calendar or fiscal year) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 . . . . . / . . . . . . . . .

mm / dd

5What is the primary purpose of the organization?

 

 

 

 

 

 

 

6

Is the organization currently conducting, or plan to conduct activities?

. 6. .

. .Yes. . . . No

 

If “Yes,” enter the date the activities began, or will begin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . /.

. .

. ./

 

mm /

dd

 

/

yyyy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Side 2 FTB 3500 2021

7222213

 

 

 

 

Organization name: __________________________

Corp number/CA SOS file number:

Part II Narrative of Activities (continued)

7Describe the organization’s past, present, and planned activities below. Do not merely refer to or repeat the language in the organizational document . List each activity separately, in the order of importance based on the relative time and other resources devoted to the activity. Indicate the percentage of time for each activity. Each description should include a:

a Detailed description of the activity, including its purpose and how it furthers the organization’s exempt purpose . b Detailed description of when the activity was or will be initiated .

c Detailed description of where and by whom the activity will be conducted .

7223213

FTB 3500 2021 Side 3

 

 

 

 

Organization name: __________________________

Corp number/CA SOS file number:

Part III Financial Data

1a Has the organization filed the Form 199, California Exempt Organization Annual Information Return, for the current

and prior years?

1a Yes

No

b Has the organization filed the FTB 199N, California e-Postcard, for the current and prior years?

. . . 1bYes

No

We will review information reported on previously filed Form 199 to determine exemption eligibility. If the FTB 199Ns were filed or no returns were filed, attach a detailed income and expense statement for the current year and three previous years . If you are not yet active, attach a proposed budget covering the next four years .

Part IV Officers, Directors, and Trustees

1List names, titles, and mailing addresses of all officers, directors, and trustees whether or not compensation is or will be paid . For each person listed, state their total annual compensation, or proposed compensation, for all services to the organization, whether as an officer, employee, or other position . Use actual figures, if available . Enter “none” if no compensation is or will be paid . If additional space is needed, attach a separate sheet .

Name

Title

Mailing Address

Compensation Amount (annual actual or estimated)

2Will any incorporator, founder, board member or other person(s) or entity:

 

a Share any facilities with the organization?

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. a.

. . Yes. .

. .. No

 

b Rent, sell, or transfer property to this organization?

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

b

Yes

No

 

c Be compensated for services other than performing as a board member or employee?

.

c

Yes

No

 

 

 

 

 

 

 

 

 

 

 

 

Part V

History

 

 

 

 

 

 

 

 

 

 

 

 

 

 

. . . . .

1 Has the organization been issued any previous California ID number?

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. .. Yes. .

. . .No.

 

 

 

 

 

 

 

 

 

2

Was this organization’s exemption previously revoked by the Internal Revenue Service?

. . .Yes. .

. . No. . 2

 

If “Yes,” enter date revoked

 

 

 

 

mm

/

 

dd

/

 

yyyy

 

Part VI

Fund Raising

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

Does or will the organization participate in fund-raising activities? . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . .

.

.

. .. .Yes. . 1No. .

 

If “Yes,” check all the fund-raising programs the organization conducts, or will conduct .

 

 

 

 

 

 

 

 

 

Mail solicitations

Phone solicitations

 

 

 

 

 

 

 

 

 

Email solicitations

Accept donations on the organization’s website

 

 

 

 

 

 

 

 

 

Personal solicitations

Receive donations from another organization’s website

 

 

 

 

 

 

Vehicle, boat, plane, or similar donations

Government grant solicitations

 

 

 

 

 

 

 

 

 

Foundation grant solicitations

Other - Attach description

 

 

 

 

 

 

 

 

Side 4 FTB 3500 2021

7224213

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Organization name: __________________________

Corp number/CA SOS file number:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Part VII Specific Activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

Does the organization conduct any gaming activities (bingo, raffles, etc .) .

. . . . . . . . . . . . . . . . . . . . . . .

. . .

. . . . . . . . .

.

. .

.

. .

.

 

1 Yes No

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

Does the organization lease property from others?

. . . . . . . . . . . . . . . . . .

. .

. . . . .

. . .

.

.

.

.

. .

 

. . .. Yes. . . .

. . No. 2

 

If “Yes,” attach copy of lease agreement .

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

Does the organization lease property to others?

. . . . . . . . . . . . . . . . . . . . . . .

.

.

.

.

.

.

. . . Yes. . .

.. No

 

If “Yes,” attach copy of lease agreement .

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4

Does or will the organization publish, sell, or distribute any literature? . . .

. . . . . . . . . . . . . . . . . . . . . .

. . .

. . . . . .

. . .

.

. .

.

. .

.

.

4 Yes

No

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5

Does or will the organization own, or have rights in music, literature, tapes, artworks, choreography, scientific discoveries,

 

 

 

 

 

 

. . . Yes. . .

.. No

 

or other intellectual property?

. . . . . . . . . . . . . . . . . . . . . . .

.

.

.

.

.

.

6Does or will the organization accept contributions of real property, conservation easements, closely held securities, intellectual

property such as patents, trademarks, and copyrights, works of music or art licenses, royalties, automobiles, boats, planes, or

other vehicles, or collectibles of any type? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes. . . .. No. . . . . . .

7Does or will the organization operate outside of the United States? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. Yes. . . . .No. . . . . . .

7225213

FTB 3500 2021 Side 5

Organization name: __________________________

Corp number/CA SOS file number:

Schedule 1

Section A R&TC Section 23701a – Labor, agricultural, or horticultural organization

1 Are any services to be performed for members? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. . .. Yes. . . . . . No If “Yes,” explain .

2

Is the organization formed as a cooperative?

 

 

If “Yes,” provide a copy of the federal exemption letter showing exemption under IRC Section 501(c)(5)

2 Yes No

Section B R&TC Section 23701b – Fraternal societies, orders, or associations, etc. (Lodge system with benefits)

Operating under the lodge system means carrying on activities under a form of organization that comprises local branches called lodges, chapters, or the like, that are largely self-governing and chartered by a parent organization .

1 Is the organization a college fraternity or sorority or a chapter of a college fraternity or sorority? . . . . . . . . . . . . . . . . . . . . . . . 1 Yes No

If “Yes,” college fraternities and sororities generally qualify as organizations described in R&TC Section 23701g .

For more information, get FTB Pub 1077, Guidelines for Social and Recreational Organizations . If R&TC Section 23701g appears to apply, do not complete Section B . Go to Section G on Schedule 3, Social and recreational organization .

2Does the organization operate, or plan to operate under the lodge system or for the exclusive benefit of the members of

 

the lodge system?

. . . . . 2

Yes

No

 

 

 

 

 

 

3

Is the organization a subordinate of a national or state level organization?

. . . . 3.

. . .Yes. .

. . No

 

If “Yes,” attach a certificate signed by the secretary of the parent organization certifying that the subordinate is a duly

 

 

 

 

 

constituted body operating under the jurisdiction of the parent body.

 

 

 

 

 

 

 

 

 

 

4

Is the organization a parent or grand lodge?

. . . . . 4

Yes

No

 

 

 

 

 

 

5Describe the types of benefits (life, sick, accident, or other benefits) paid, or to be paid, to members .

Section L R&TC Section 23701l – Fraternal beneficiary societies, orders, or associations, etc. (Lodge system with no benefits)

Operating under the lodge system means carrying on activities under a form of organization that comprises local branches (called lodges, chapters, or the like) that are largely self-governing and chartered by a parent organization .

1 Is the organization a college fraternity or sorority, or a chapter of a college fraternity or sorority? . . . . . . . . . . . . . . . 1. . . .Yes. . . No

If “Yes,” college fraternities and sororities generally qualify as organizations described in R&TC Section 23701g .

For more information, get FTB Pub 1077, Guidelines for Social and Recreational Organizations . If R&TC Section 23701g appears to apply, do not complete Section L . Go to Section G on Schedule 3, Social and recreational organization .

2Does the organization operate or plan to operate under the lodge system or for the exclusive benefit of the members of

 

a lodge system?

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. .

.□. .Yes. . .

No

 

 

 

 

 

3

Is the organization a subordinate of a national or state level organization?

. . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

. . .Yes. . . . No

 

 

 

 

 

 

4

Is the organization a parent or grand lodge?

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Yes

No

Side 6 FTB 3500 2021

7226213

 

 

 

 

Organization name: __________________________

Corp number/CA SOS file number:

Schedule 2

Section D R&TC Section 23701d – Religious, charitable, scientific, literary, or educational organization

1Check the box(es) below that best describes the organization .

Charitable

Educational

Credit Counseling

Synagogue

School

Testing for public safety

Church

Literary

Hospital, Medical Center

Temple

Scientific

Qualified sports organization

Mosque

Religious

Prevent cruelty to children or animals

2Has the organization received or expect to receive 10% or more of its assets from any organization or group of affiliated organizations (affiliated through stockholding, common ownership, or otherwise), any individuals, or members of a family

 

group (brother or sister whether whole or half blood, spouse/RDP, ancestor or lineal descendant)?

2

Yes

No

 

 

 

 

 

3

Does the organization attempt to influence legislation?

3. . .

. Yes. . . .

. . No

4Does the organization support or oppose candidates in political campaigns in any way? . . . . . . . . . . . . . . . . . . . . 4. . . Yes. . . .. No.

5Does the organization hold, or plan to hold, 10% or more of any class of stock or 10% or more of the total combined

 

voting power of stock in any corporation?

. 5. .

.□. .Yes.

No

 

 

 

 

 

 

6

a

Does the organization operate as a church, mosque, synagogue, or temple?

.6a. .

.□. .Yes

No

 

 

If “Yes,” complete Schedule 2A, Churches .

 

 

 

 

b

Is the organization’s main function to provide hospital or medical care?

6b

Yes

No

 

 

If “Yes,” complete Schedule 2B, Hospitals .

 

 

 

 

c

Is the organization a credit counseling organization?

6c

Yes

No

 

 

If “Yes,” complete Schedule 2C, Credit Counseling Organizations .

 

 

 

7227213

FTB 3500 2021 Side 7

Organization name: __________________________

Corp number/CA SOS file number:

Schedule 2A – Churches

Complete Schedule 2A only if the organization answered “Yes” to Specific Section D, Question 6a .

1Check the box that best describes the organization .

 

Church Mosque Synagogue

Temple

 

2

Has a place of worship been established?

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes. . . .. No

 

If “Yes,” at what address? Who is the legal owner of the property? Other property use?

 

If “No,” explain where religious services are held .

 

 

 

 

 

 

 

 

 

 

 

 

3 Does the organization have a regular congregation or conduct religious services on a regular basis?. . . . . . . . . . . . . . . . . . . . 3 Yes No If “Yes,” how many usually attend the regular worship services? How often are religious services held?

If “No,” explain .

4Explain the background and training of the religious leaders .

5Will income be received from incorporators, ministers, officers, directors, or their families? . . . . . . . . . . . . . . . . . . . . . Yes. . . .. No5 If “Yes,” explain, including dollar amounts received .

 

 

 

6

Will any founder, member, or officer take a vow of poverty? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. Yes. . . . .No

 

If “Yes,” explain .

 

 

 

 

 

 

 

 

 

7Will any founder, member, or officer transfer personal assets to this organization, like a home, automobile, furnishings,

business, or recreational assets, etc ., that will be made available for the personal use of the donors? . . . . . . . . . . . . . . . . .Yes. . 7No If “Yes,” explain .

Side 8 FTB 3500 2021

Schedule 2A Churches continued

7228213

 

 

 

 

Organization name: __________________________

Corp number/CA SOS file number:

Schedule 2A – Churches (continued)

8Will any founder, member, or officer assign or donate income to the organization that will be used to pay their own personal salary, living allowance, or that will result in any other personal benefit (such as food, medical expenses, clothing,

 

insurance, etc .)?

8 Yes No

 

If “Yes,” explain .

 

 

 

 

 

 

 

 

 

 

9

Does the organization have a written creed, statement of faith, or summary of beliefs?

9 Yes No

 

If “Yes,” explain .

 

 

 

 

 

 

 

 

 

 

10

Do the religious leaders conduct baptisms, weddings, funerals, etc .?

10. . . .Yes No

 

If “Yes,” explain .

 

 

 

 

 

 

 

 

 

 

11

Does the organization ordain, commission, or license ministers or religious leaders?

11 Yes No

 

If “Yes,” describe .

 

 

 

 

 

 

 

7229213

FTB 3500 2021 Side 9

Organization name: __________________________

Corp number/CA SOS file number:

Schedule 2B – Hospitals

Complete Schedule 2B only if the organization answered “Yes” to Specific Section D, Question 6b . Attach a statement to explain any answers .

1

Are all the doctors in the community eligible for staff privileges?

1 Yes No

 

If “No,” give the reasons why and explain how the medical staff is selected .

 

2a Does or will the organization provide medical services to all individuals in the community who can pay for themselves

or have private health insurance? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2a. . . □. Yes. . . □. .No. . . . . . .

If “No,” explain .

bDoes or will the organization provide medical services to all individuals in the community who participate in

Medicare? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . □. Yes. . . .□. No. . . . . . .

If “No,” explain .

3a Does or will the organization require persons covered by Medicare or Medicaid to pay a deposit before receiving

 

 

services?

3a

Yes

No

 

 

If “Yes,” explain .

 

 

 

 

b Does the same deposit requirement, if any, apply to all other patients?

3b

Yes

No

 

 

If “No,” explain .

 

 

 

4

a

Does or will the organization maintain a full-time emergency room?

4a

Yes

No

 

 

If “No,” explain why the organization does not maintain a full-time emergency room . Also, describe any emergency

 

 

 

 

 

services provided .

 

 

 

 

b

Does the organization have a policy on providing emergency services to persons without apparent means to pay? . . . .

4b. .

Yes

No

 

 

If “Yes,” provide a copy of the policy.

 

 

 

cDoes the organization have any arrangements with police, fire, and voluntary ambulance services for the delivery

 

 

or admission of emergency cases?

. . .

.□. Yes. . 4c No

 

 

If “Yes,” describe the arrangements, including whether they are written or oral agreements . If written, submit copies of

 

 

 

 

 

all such agreements .

 

 

 

5

a

Does the organization provide for a portion of the organization’s services and facilities to be used for charity patients? . . .

5a

Yes

No

 

 

If “Yes,” answer question 5b through question 5e .

 

 

 

 

b

Explain the organization’s policy regarding charity cases, including how the organization distinguishes between charity

 

 

 

 

 

care and bad debts . Submit a copy of the written policy.

 

 

 

 

c

Provide data on the organization’s past experience in admitting charity patients, including the amounts expended for

 

 

 

 

 

treating charity care patients and types of services provided to charity care patients .

 

 

 

 

d

Describe any arrangements with federal, state, or local governments or government agencies for paying for the cost

 

 

 

 

 

of treating charity care patients . Submit copies of any written agreements .

 

 

 

 

e

Does the organization provide services on a sliding fee schedule depending on financial ability to pay?

5e

Yes

No

 

 

If “Yes,” submit the sliding fee schedule .

 

 

 

6

a

Does or will the organization carry on a formal program of medical training or medical research?

6a

Yes

No

 

 

If “Yes,” describe such programs, including the type of programs offered, the scope of such programs, and affiliations

 

 

 

 

 

with other hospitals or medical care providers with which the organization carries on the medical training or research

 

 

 

 

 

programs .

 

 

 

 

b

Does or will the organization carry on a formal program of community education?

. . .

.□. Yes6b

No

 

 

If “Yes,” describe such programs, including the type of programs offered, the scope of such programs, and affiliations

 

 

 

 

 

with other hospitals or medical care providers with which the organization offers community education programs .

 

 

 

Schedule 2B Hospitals continued

Side 10 FTB 3500 2021

7229213

File Specifics

Fact Name Details
Purpose of Form The California Form 3500 is an application for organizations seeking tax-exempt status under California law.
Governing Law This form is governed by the California Revenue and Taxation Code, specifically sections related to tax-exempt organizations.
Required Information Organizations must provide detailed information, including their structure, activities, and financial data, to complete the form.
Submission Address Completed forms must be mailed to the Exempt Organizations Unit at the Franchise Tax Board in Rancho Cordova, California.
Consequences of Incomplete Submission If the necessary documents are not included, the application may be delayed or denied, emphasizing the importance of thoroughness.

How to Use California 3500

Completing the California 3500 form is an essential step for organizations seeking tax-exempt status. This form collects important information about the organization, its activities, and its financial data. Below are the steps to fill out the form accurately.

  1. Begin by entering the Organization Information:
    • California corporation number or California Secretary of State file number
    • FEIN (Federal Employer Identification Number)
    • Name of the organization as shown in the creating document
    • Web address
    • Street address (including suite, room, or PMB number)
    • City, State, and ZIP code
    • Telephone, second telephone, and fax number
  2. Provide Representative Information:
    • Name of representative
    • Email address
    • Street address (including suite, room, or PMB number)
    • City, State, and ZIP code
    • Telephone, second telephone, and fax number
  3. Complete Part I: Organizational Structure by answering the general questions:
    • Indicate if the organization is a foreign corporation, trust, or limited liability company (LLC)
    • If applicable, provide the parent organization’s employer identification number (EIN)
    • State if currently tax-exempt with the IRS and if applying for group exemption
  4. In Part II: Narrative of Activities, answer the following:
    • Indicate if the organization’s California tax-exempt status was previously revoked
    • Enter the relevant California Revenue and Taxation Code section
    • Provide the date the organization was formed and the annual accounting period ending
    • Describe the organization’s primary purpose and planned activities
  5. For Part III: Financial Data, answer questions regarding previous filings:
    • Indicate if the organization has filed Form 199 and FTB 199N for the current and prior years
    • If not active, attach a proposed budget for the next four years
  6. In Part IV: Officers, Directors, and Trustees, list all relevant individuals:
    • Include names, titles, mailing addresses, and compensation amounts
    • Answer whether any individuals share facilities, rent, sell, or transfer property to the organization
  7. Complete Part V: History by answering if the organization has a previous California ID number and if the exemption was revoked by the IRS.
  8. In Part VI: Fund Raising, indicate if the organization participates in fundraising activities and check all applicable programs.
  9. Finally, in Part VII: Specific Activities, answer questions about gaming activities, property leases, and whether the organization operates outside the United States.

After completing all sections, review the form for accuracy. Ensure all required documents are attached. Once finalized, mail the form to the Exempt Organizations Unit at the specified address. Be sure to keep a copy for your records.

Your Questions, Answered

What is the California 3500 Form?

The California 3500 Form is an Exemption Application used by organizations seeking tax-exempt status in California. This form collects essential information about the organization, including its structure, activities, and financial data. It is crucial for organizations to complete this form accurately to avoid delays or denials in their exemption request.

Who needs to file the California 3500 Form?

Any organization in California that wishes to obtain tax-exempt status must file the California 3500 Form. This includes various types of entities such as corporations, trusts, and limited liability companies (LLCs). If the organization is already tax-exempt with the IRS, it still needs to apply for California exemption using this form.

What information is required on the California 3500 Form?

The form requires detailed information, including:

  1. Organization details (name, address, contact information).
  2. Type of organization (e.g., corporation, trust, LLC).
  3. Financial data, including income and expenses.
  4. Details about officers, directors, and trustees.
  5. A narrative describing the organization's activities and purposes.

Incomplete submissions may lead to delays in processing.

How is the California 3500 Form submitted?

Organizations must mail the completed California 3500 Form to the Exempt Organizations Unit at the Franchise Tax Board. The address is:

EXEMPT ORGANIZATIONS UNIT MS F120,
FRANCHISE TAX BOARD,
PO BOX 1286,
RANCHO CORDOVA, CA 95741-1286.

What happens if the organization’s tax-exempt status is revoked?

If an organization’s tax-exempt status has been revoked, it must disclose this on the California 3500 Form. The organization may need to provide additional information to demonstrate compliance with tax regulations before being granted exemption again.

Can an organization apply for group exemption?

Yes, organizations can apply for group exemption using the California 3500 Form. This applies to entities that are part of a larger parent organization that holds tax-exempt status. It is essential to indicate this on the form and provide the parent organization’s employer identification number (EIN).

Common mistakes

  1. Failing to provide the required documents. If the necessary documents are not included, the request for exemption may be delayed or denied. Always double-check that all required paperwork is attached.

  2. Incorrectly answering the questions about organizational structure. Misunderstanding whether the organization is a foreign corporation, trust, or LLC can lead to significant issues. Ensure clarity on the organization's status before completing this section.

  3. Neglecting to include the organization’s tax-exempt status with the IRS. If the organization is already tax-exempt, this information must be clearly stated. Omitting this can complicate the application process.

  4. Not detailing past and planned activities adequately. Each activity should be described thoroughly, including its purpose and how it aligns with the organization’s exempt purpose. Avoid vague descriptions.

  5. Overlooking the financial data section. Failing to report previous filings or providing incomplete financial information can result in the application being flagged. Be thorough and accurate in reporting.

Documents used along the form

The California 3500 form is an important document for organizations seeking tax-exempt status in California. Along with this form, several other documents may be required or beneficial to support your application. Here’s a list of commonly used forms and documents that often accompany the California 3500 form:

  • Form FTB 3500A: This form is used for organizations that have had their tax-exempt status revoked and are applying for reinstatement. It provides a streamlined process for reapplying.
  • Form 199: This is the California Exempt Organization Annual Information Return. Organizations must file this form annually to maintain their tax-exempt status.
  • Form FTB 199N: Known as the California e-Postcard, this form is for smaller tax-exempt organizations that meet certain criteria. It simplifies the filing process for those with minimal revenue.
  • Bylaws: These are the rules governing the organization’s operations. They outline how decisions are made and how the organization is structured, which is crucial for demonstrating compliance with tax-exempt requirements.
  • Articles of Incorporation: This document establishes the organization as a legal entity. It provides essential information about the organization, including its purpose and structure.
  • Financial Statements: Detailed income and expense statements for the current and previous years help demonstrate the organization’s financial health and support its application for tax exemption.
  • Conflict of Interest Policy: This policy outlines how the organization will handle conflicts of interest among board members and staff, promoting transparency and ethical governance.

Gathering these documents can help ensure a smoother application process for tax-exempt status in California. Each document plays a role in demonstrating the organization’s compliance and commitment to its mission.

Similar forms

The California Form 3500 is similar to the IRS Form 1023, which is used to apply for federal tax-exempt status. Both forms require detailed information about the organization’s structure, purpose, and activities. While the California 3500 focuses on state-level tax exemption, the IRS Form 1023 is aimed at securing federal recognition. Applicants must provide information about their governance, financial data, and a narrative of activities to demonstrate how they meet the requirements for tax exemption in their respective jurisdictions.

Another similar document is the IRS Form 990, which tax-exempt organizations must file annually. This form provides a comprehensive overview of an organization’s financial health, including revenue, expenses, and program activities. Like the California 3500, it requires transparency about the organization’s operations. However, while the California 3500 is an application for exemption, Form 990 serves as a report on how well the organization has adhered to its exempt purpose after receiving tax-exempt status.

The California Form 3500 also resembles the IRS Form 1024, which is used by organizations seeking to be recognized as tax-exempt under Section 501(a) other than 501(c)(3). Both forms require applicants to provide information about their organizational structure, governance, and activities. The key difference lies in the specific type of tax-exempt status being sought, with Form 1024 catering to a broader range of exempt organizations.

Additionally, the California 3500 has similarities with the California Form 3500A, which is a simplified application for organizations that have previously been recognized as tax-exempt. Both forms require information about the organization’s purpose and activities, but the 3500A is generally shorter and less detailed, reflecting the organization’s established status. This allows for a more streamlined process for those seeking to maintain their exemption.

The California Statement of Information (Form SI-100) is another document that shares similarities with the California 3500. Both forms require organizations to disclose basic information about their structure, including addresses and officer details. However, the Statement of Information is primarily a corporate filing that updates the state on the organization’s contact and operational information, while the 3500 focuses on tax exemption eligibility.

The California Franchise Tax Board’s Form 199 is akin to the California 3500 in that it serves as an annual information return for exempt organizations. Both forms require financial data and information about activities. However, while the 3500 is an application for exemption, Form 199 is a reporting tool that ensures compliance with state tax laws after the exemption has been granted.

The IRS Form 990-EZ is another comparable document, designed for smaller tax-exempt organizations. Like the California 3500, it requires financial information and a summary of activities. The 990-EZ is a streamlined version of the full Form 990, providing a simpler reporting option for organizations with less complex operations. Both forms aim to ensure transparency and accountability in the use of tax-exempt status.

Form 3500 is also similar to the California Nonprofit Corporation Articles of Incorporation. Both documents require foundational information about the organization, such as its name, purpose, and structure. However, the Articles of Incorporation serve as the initial legal document to establish the organization, while the 3500 is focused on securing tax-exempt status after incorporation.

Lastly, the California Form 990-N, also known as the e-Postcard, is relevant for smaller organizations that may not meet the filing requirements for the full Form 990. Both forms are used to report information about the organization’s activities and financials, but the 990-N is significantly shorter and simpler. It serves as a way for small tax-exempt organizations to maintain their status without the detailed disclosures required by the 3500 or the full Form 990.

Dos and Don'ts

When filling out the California Form 3500, there are several key points to keep in mind. Here’s a helpful list of things you should and shouldn’t do:

  • Do ensure accuracy: Double-check all information for correctness. Mistakes can lead to delays or denial of your exemption request.
  • Do provide required documents: Include all necessary supporting documents. Copies are acceptable, but missing documents can hinder your application.
  • Do answer all questions: Make sure to respond to every question on the form. Leaving questions unanswered can raise red flags.
  • Do sign and date the form: Your signature certifies that the information is true and complete. An unsigned form may be rejected.
  • Don't rush through the form: Take your time to fill it out carefully. Hasty submissions often lead to errors.
  • Don't forget to include contact information: Ensure that your representative's contact details are clearly listed for any follow-up.
  • Don't use vague descriptions: When detailing activities, be specific about what your organization does. General statements can weaken your application.
  • Don't ignore the instructions: Follow all guidelines provided in the form. Ignoring them can lead to complications.

Misconceptions

  • Misconception 1: The California 3500 form is only for nonprofit organizations.
  • This form is applicable to various types of organizations, including foreign corporations, trusts, and limited liability companies (LLCs). Each type has specific requirements and qualifications for tax-exempt status.

  • Misconception 2: If my organization is already tax-exempt federally, I don't need to fill out the California 3500 form.
  • Even if your organization has federal tax-exempt status, it must still apply for state exemption in California. The state has its own criteria and processes that differ from federal requirements.

  • Misconception 3: The 3500 form can be submitted without any supporting documents.
  • Submitting the 3500 form without the necessary supporting documents can lead to delays or even denial of your exemption request. Ensure all required documents are included with your application.

  • Misconception 4: Once I submit the form, I will receive my tax-exempt status immediately.
  • The review process for the 3500 form can take time. The California Franchise Tax Board will evaluate your application, and it may take several weeks or even months before a decision is made.

  • Misconception 5: I don’t need to worry about the form if my organization has never been tax-exempt before.
  • Even if your organization has never applied for tax-exempt status, you must complete the 3500 form if you wish to obtain it. This is your opportunity to establish eligibility.

  • Misconception 6: The 3500 form is the same for all types of organizations.
  • Different types of organizations may have distinct requirements and sections on the form. It’s important to carefully review the sections relevant to your specific organization type.

  • Misconception 7: I can leave sections of the form blank if they don’t apply to my organization.
  • Leaving sections blank can lead to confusion and may slow down the processing of your application. It’s best to provide answers or explanations for every section, even if it means stating that a particular question is not applicable.

  • Misconception 8: I can submit the form online.
  • The California 3500 form must be submitted by mail. There is no online submission option available, so make sure to send it to the correct address provided on the form.

  • Misconception 9: I don’t need to keep copies of the form or documents I submit.
  • It’s crucial to retain copies of your submitted form and any accompanying documents for your records. This can be helpful if you need to reference your application in the future or if any issues arise.

Key takeaways

  • Ensure you have all necessary information at hand before starting the California 3500 form. This includes your organization's details and representative information.

  • Check if your organization qualifies as a foreign corporation, trust, or LLC. This will affect your eligibility for tax-exempt status.

  • Provide copies of any required documents. Failure to do so can delay or deny your exemption request.

  • Clearly describe your organization's activities. Include past, present, and planned activities with specific details about their purpose and execution.

  • Complete the financial data section accurately. This includes filing history and income statements for the current and previous years.

  • List all officers, directors, and trustees, including their compensation. Transparency is key in this section.

  • Be prepared to explain any previous revocations of tax-exempt status. This information is critical for your application.

  • Include details about fundraising activities, if applicable. Specify the methods you will use to solicit donations.

  • Double-check your application for completeness and accuracy. Incomplete applications can lead to delays.

  • Mail the completed form to the designated address. Ensure you follow the instructions to avoid any issues.