Creation of F.O.O.L.S. Chapter For 501(c)(3) or 501(c)(6)

The following discussion will try to give you an overview as to the process of creating, registering and filing the proper forms with your state and federal government to create a F.O.O.L.S. chapter. This article is intended to inform you about the process and whether your chapter is a 501(c)(3) or 501(c)(6). If you decide to create a chapter, I recommend you consult a local CPA/Attorney to assist you.

Step 1:

Seek approval from F.O.O.L.S. International to form a Chapter. (If you are an established chapter, go to Step 2)

Step 2:

Creation of your chapter's organization structure which includes the following:

a) Choice of entity type (Trust, Association or Corporation). Your choice will be influenced by your state's treatment of each. Federal government accepts each type.

b) Decide if you are going to try to qualify as a 501(c)(3). A complete review of IRS form 1023 instructions is very helpful in arriving at this decision and available on IRS.GOV forms and instructions web site. If you decide not to seek a 501(c)(3) exemption your chapter will be a 501(c)(6).

c) Drafting of your Articles of Association (formally known as the “by-laws”). (These are to “mirror” the International's Articles of Association. Any “chapter specific” items are to be approved by the International.) The documents should include your mission statement or purpose for your existence. In order to qualify for 501(c)(3), your chapter must have a charitable and/or public safety purpose. Charitable purpose could include support for other charitable organizations or direct charitable work for your community. Public safety purposes include training and education of chapter members with regard to the fire service.

d) Your documents should also include a dissolution clause in order to resolve closing the chapter, if necessary. If you are trying to qualify under 501(c)(3), the IRS recommends the following paragraph:

“Upon the dissolution of this organization, assets shall be distributed for one or more exempt purposes within the meaning of section 501(c)(3) of the Internal Revenue Code, or corresponding section of any future federal tax code, or shall be distributed to the federal government, or to a state or local government, for a public purpose.”

Step 3:

File your state registration with the Secretary of State or Division of Corporations. Please note that all states vary on this process, but most states post their process on the internet.

Step 4:

File for your Federal ID#. This is done by completing a form SS-4, or this can be done over the internet on IRS.GOV

Step 5:

If you have decided to qualify as a 501(c)(3), complete and file form 1023 Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, including all required documents and attachments. The form is a detailed review of your chapter purpose and how it operates. A complete review of the instructions is recommended.

Again, consult a local CPA/Attorney if you are not comfortable with any part of the process.