How to Form a Non-Profit Corporation

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By ajmaddox
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Non Profit

To form a non-profit organization, you must complete the steps and apply in the state which you will pactice. There are several benefits to forming a non-profit. As a non-profit organization you will be able to apply for grants and receive tax exemption. You will also be able to receive tax-deductible donations which help greatly in fundraising.

Difficulty: Challenging

Instructions

Things You'll Need:

501 form
Legal Help

Step 1

Make sure that your company is formed to benefit the public or a certain group. It must not be designed to gain from profit. You will be able to accept donations to run the organization. By defination from the IRS, a non-profit organization must:
a.Absolutely refrain from participating in the political campaigns of candidates for local, state, or federal office.
b. Absolutely ensure that its assets and earnings do not unjustly enrich board members, officers, key management employees, or other insiders.
c. Not further non-exempt purposes (such as purposes that benefit private interests) more than insubstantially.
d. Not operate for the primary purpose of conducting a trade or business that is not related to its exempt purpose(s).
e. Not engage in activities that are illegal or violate fundamental public policy.
f. Restrict its legislative activities.
Step 2

Complete your 501c(3). This is the tax form that give your tax exempt status. You will also have to file your articles of incorporation with your state. This is state specific so check with your local agency.
Step 3

Contact legal representation. This can be an attorney or an online service that works for you. You can check the resources to see a site that will have information.
Step 4

Check prices to see which will work best for you. When all of the information is filed, you will then receive your non-profit information.