-
Step 1
Develop a name and mission statement for your non-profit business. These should be brief and clearly articulate the purpose of the organization. You will need these when filing your state articles of incorporation.
-
Step 2
Recruit a board of directors for your organization. Most states require an incorporating board (the board in place when the business is formed) of at least three members, each of whom has no other connection to the organization. For example, the board members should not be members of the business's staff.
-
Step 3
Hold your first board meeting and take accurate minutes at this and all future board meetings. Meetings for non-profit organizations are usually governed by Robert's Rules of Order.
-
Step 4
File your business's articles of incorporation with your state. The articles include critical information such as your organization's name and mission, the names and contact information for the incorporating board and the business's exempt purpose under the IRS code.
-
Step 5
When you receive your official copy of your articles of incorporation, apply for an employer identification number (federal tax identification number) through the IRS. Then file IRS Form 1023 (Application for Recognition of Exemption) to secure your tax-exempt status. Note that this process can take up to six months to complete.
-
Step 6
Once your Application for Recognition of Exemption has been accepted and approved, file for any necessary state and local tax exemptions. In addition, to conduct any fundraising activities, your organization may need to register with your local charities registration bureau.
-
Step 7
File for any applicable state sales and property tax exemptions, based on your group's qualifications.
-
Step 8
Draft your organization's operational bylaws and have them approved by the incorporating board.
