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How to Start a Private Non-Profit Organization

Contributor
By Elizabeth Lang
eHow Contributing Writer
(2 Ratings)

Non-profit organizations include charities, research organizations and activist groups. Non-profit organizations are never publicly held. They can perform a wide range of services, usually those that the state or local government does not fully provide. The underlining common component to all non-profit organizations it that they do not seek to earn a profit as businesses do.
Starting a non-profit group allows people or groups of people with passion for a particular subject or goal to work for or toward that goal while receiving tax benefits and receiving tax-deductible donations and grants.

Difficulty: Challenging
Instructions
  1. Step 1

    Create a mission statement to define the purpose of your non-profit organization. Questions that should be answered include: What is the reason for creating your non-profit? Who will it serve and how will it help them? Who will work for the non-profit?

  2. Step 2

    Meet with other people who you trust to get advice and insight about your non-profit's mission. These people may be friends or colleagues. You may invite them to serve on your board of directors. The majority of states require a board of directors to incorporate.

  3. Step 3

    Write your non-profit group's articles of incorporation. The articles of incorporation formally dictate the purpose of the nonprofit group, its location and its name. These articles should be approved by your board of directors. There are many templates for articles of incorporation on the internet such as those found at www.mncn.org (see resources list below).

  4. Step 4

    File the articles of incorporation with your state's secretary of state office. This is done by contacting your secretary of state to find out about necessary forms and fees. You will then send the articles of incorporation along with any fees to the secretary of state.

  5. Step 5

    Apply for non-profit status by completing IRS Publication 557, Form 1023, Form 8718. Publication 557 explains in detail the federal laws about non-profits and should be read thoroughly.

  6. Step 6

    Write the organization's bylaws. The bylaws of the non-profit detail the rules, including listing the board of directors, members and fiscal management. The bylaws should expand on and give more detail to the articles of incorporation, and a template of bylaws can be found in the resources section.

  7. Step 7

    Contact your state's department of revenue to file for non-profit status in your state. This can only be completed once you receive your letter of determination from the IRS (you will receive this after completing forms listed in Step 5).

  8. Step 8

    Request tax exemption from state sales taxes. The sales-tax exemption will allow your non-profit to purchase equipment and supplies tax-free. The state's department of revenue will supply the forms and directions needed to apply for sales tax exemption.

  9. Step 9

    Open a bank account that is explicitly for your non-profit. The bank account can be a simple checking account at your local bank or at a large nationwide bank such as Wells Fargo or Bank of America.

  10. Step 10

    Solicit funding. Once you've obtained non-profit status you may begin accepting donations and applying for grants.

Tips & Warnings
  • A lawyer may be able to assist with the IRS application materials and incorporation. Hire one to review paperwork if you are unsure.
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