How to Set Up a Non Profit Corporation in California
Non-profits provide many useful services to those in need. Non-profit organizations are set up to reserve their funds or profits to further their goals rather than dividing those funds among shareholders or owners. Starting your own non-profit is actually much simpler than it sounds. In California, those wishing to start a non-profit corporation may do so by contacting the Secretary of State's office.
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Instructions
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Select and register a name for your non-profit corporation. In California, you can check the availability of a name by going in person or sending a Name Availability Inquiry Letter (see Resources) to:
Secretary of State
Name Availability Unit
1500 11th St, 3rd Floor
Sacramento, CA 95814The request allows you to inquire into three possible names, in order of preference. The Name Availability Unit will respond to any written request by mail. Make sure to include a self-addressed stamped envelope.
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Reserve a name. Inquiring as to the availability of a name does not reserve the name for your non-profit corporation. You must reserve a name by going in person to the Secretary of State's office in person or sending a Name Reservation Request (see Resources) along with a check or money order for $10 made payable to the: Secretary of State to:
Secretary of State
Business Services Division
1500 11th St, 3rd Floor
Sacramento, CA 95814Your non-profit business name will be reserved for 60 days. That means you have 60 days to register your non-profit if you are to be guaranteed the right to use that particular business name.
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Complete and file your Articles of Incorporation. This has five sections. The first is the name of the non-profit corporation. The second section describes the purpose of your non-profit. The third section specifies the resident agent (the agent appointed by your non-profit who actually is a legal resident within the state). The fourth and fifth sections specify that the organization is a non-profit corporation. All members must sign the document. The document can be mailed to:
Document Filing Support Unit
PO Box 944260
Sacramento, CA 94244-2600You may also drop off the document at three different locations within the state of California. For drop-off locations and an example of a non-profit Articles of Incorporation document see Resources. You must also include payment for $30 in the form of a check or money order, payable to the Secretary of State.
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Apply for non-profit federal tax exemptions within 27 months after incorporating your non-profit organization. Submit an application to become tax exempt by filing the "User Fee for Exempt Organization Determination Letter Request" (Form 8178), and "Application for Recognition of Exemption with the IRS" (Form 1023). You can find these forms at IRS.gov. There is no fee for this.
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Become familiar with fund-raising laws and regulations in the state of California. The Office of the Attorney General regulates fund-raising by non-profits. You can go to their website at: http://caag.state.ca.us/charities/statutes.htm. Or you can write a request for information or call them at:
California Department of Justice
Office of the Attorney General
1300 I Street, Suite 1130
Sacramento, CA 95814
916-445-2021
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References
Resources
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