How to Start a Non-Profit Organization

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By taxattorney
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Starting a Non-Profit Organization has two basic parts, legal and organizational. As a tax attorney, I will address the legal part of the equation.

Difficulty: Moderate

Instructions

Step 1

It is probably best to incorporate for purposes of limiting your liability. The IRS does not require a tax-exempt non-profit to be a corporation, but it is probably best.
Step 2

Most, if not all, states have web sites that provide forms to set up corporations. In Ohio, for example, it is the web site of the Secretary of State of Ohio. You can download the necessary forms. Sometimes you can simply fill-in the information right on your computer and print out the filled-in form.
Step 3

The IRS requires specific language to be included in your incorporation documents to qualify as a tax-exempt organization. The Secretary of State of Ohio has instructions for setting up a not for profit corporation. But you may need to go to the IRS web site to get the information, if your state's Secretary of State (or similar department) doesn't provide you with that information.
Step 4

Before you start filling out the forms, though, you need a name for your organization/corporation. The Secretary of State of Ohio's web site allows you to do a name search to see if someone else is already using the name you want. If so, you may need to get permission to use the same name; or you need to keep searching, until you find a name that isn't already taken.
Step 5

There also is likely to be a filling fee and certain other requirements (e.g., the number of people that must be incorporators). This information is also easily available from the Secretary of State's web site.
Step 6

Once you are incorporated, you will need to apply to the IRS for tax exempt status. This can be complicated, but most of my clients have been able to accomplish qualifying for tax exempt status without spending a dime for my services.
Step 7

Once you're in "business," you will have to file documents with the IRS on a yearly basis and with your Secretary of State or other department on a schedule set up by the state.
Step 8

That's it. It's really not that difficult. The hard stuff is getting the organization off the ground, raising the money you need, and things like that. Good Luck!

Comments

auntkitty said

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on 10/24/2009 You really broke it down nice and simple for us. Thank you.

bambi1074 said

on 10/11/2009 Really good article!Very helpful advice,Thanks for sharing!Recommended 5*

nank712 said

on 9/16/2009 Good article. We did this two years ago --- our biggest hurdle was ourselves, because we dragged our feet thinking it would be a lot harder than it actually was! 5* and a recommend.