Where to start your NonProfit Filing
You've decided to start a NonProfit Organization. Where do you begin?
The initial decision-making process should include coming up with an appropriate name, shaping your intentions on the solicitation and distribution of monies, services and/or goods and clearly identifying the persons who will benefit from your work. You'll decide whether there will be compensation for any of the duties you and your Board intend to perform and consider the best candidates to help you achieve your goals.
Once these fundamentals are answered, you may move towards the beginning of the filing processes. Before the Internal Revenue Service takes their first look at your application for Tax Exemption, they require that you form a NonProfit Organization in the state in which you conduct your activities. This will mean becoming established as a NonProfit Corporation or Association. Rules vary by state as to the requirements for starting NonProfit Organizations with different state entities. For instance, in states like California there are 4 different state filings with various agencies and offices required to become a fully compliant NonProfit Corporation.
A set of Organizing Documents must be drafted- typically Articles of Incorporation but in some cases Articles of Association- and a set of NonProfit Bylaws that will establish rules that are designed to guide and in some cases protect the organization. These Organizing Documents must be compliant with both the laws of the state in which you operate and those of the Internal Revenue Service.
Once your Organizing Documents are certified by the state, all additional agencies and reporting requirements specific to your state must be met. Typically this includes registering your NonProfit Officers and NonProfit Board of Directors. Most organizations that choose to proceed with these filings on their own will spend about 2-3 months fulfilling the required steps before filing an application with the I.R.S. At TaxFreeCharity.com, we complete this part of the process in about 5 working days.
Once filed properly and completely as a NonProfit Organization within your state, you will be in the position to advance to the next step: Tax Exemption.
Final Steps to Filing For NonProfit 501(c) Tax Exemption