If your organization intends to file with the IRS to obtain tax-exempt status, you must use precise language in your articles of incorporation. This language is required to show that, as an organization, you fully understand the ramifications of securing tax-exempt status and that you agree to adhere to some basic rules governing how you handle your organization's finances.

Making the Articles Your Own

The sample articles of incorporation provided by many states do not have extra space to include the wording necessary to meet the IRS requirements because the state and federal incorporation requirements are not the same. The easiest way to solve this problem is to include the articles you want to use, attaching additional sheets as necessary to the form, and send it all in together. On every attached sheet, be sure to write the name of the organization, the preparer's name and contact information, and the organization's Employment Identification Number (EIN). The process for obtaining the EIN is covered in Chapter 7. The people who review these state incorporation filings are used to seeing additional language, so there will not be a problem.

Don't Get Too Creative

Remember that these articles will show the state your intent to incorporate and the IRS your qualifications for tax-exempt status. For the most part, you must meet minimum standards and use required language. Anything too far beyond what everyone expects to see will raise more questions than answers.