How to Prepare a 501(c)3

When you are staring a nonprofit organization that will be tax exempt, you must first file the application 501(c)3 and prepare for the application. The easy part is filling out the application. Learn how to prepare a 501(c)3 with proper documentations. You must have everything drawn up before you consider filling out the application. The board of directors and trustees will need to participate in the preparations in order to have a complete business plan.

Difficulty: Moderately Challenging

Instructions

Things You'll Need:

• Employer Identification Number

Preparing the Application

1. Obtain an Employer Identification Number. You will need this number before you start preparing your 501(c)3 preparation.

2. Plan and prepare the strategic plan and the mission statement of the organization. The statement should be defined in 14 words or less. Do not make a lengthy statement. Short and frank is what your statement should be. The strategic plan should cover projected revenue, resources for finances, employee policies and authority, marketing plan and the structure of the management.

3. Write the bylaws and articles of incorporation. You must have a purpose limitation section, operations limitation sections and a dissolution clause (see reference) for how to specifically design these bylaws and articles of incorporation. You may want a lawyer to complete this part of the 501(c)3 preparations.

4. Plan a meeting with the trustees and board of directors to finalize the details involving the integrity, financial and legal substance of the organization. The board must approve the bylaws and articles of incorporation. The board will establish how the organization will be run ethically and morally.

5. Look at the application of exemption Form 1023. Pay close attention to the section about activities found on page 2 and the section about the board of directors on page 3. This form must be detailed and correct.

References

• 501(c)3 Preparation
• Employer Identification Number