How to Launch a 501(c)3 Organization
When starting an organization devoted to charitable work, you can apply for tax-exempt status for the organization by registering it as an IRS 501(c)3, sometimes mistakenly referred to as a 401(c)3. Launching a nonprofit educational, religious, or charitable organization requires establishing a company in the same fashion as you would a for-profit one and then applying for a tax exemption.
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Instructions
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Contact the secretary of state in the resident state the organization will work in. File for articles of incorporation for the organization. Be sure to check the "name search" records with the secretary of state to make sure your organization name is available. You may be able to do this online in most states, or you can use an organization-establishing company such as AmeriLawyer.com or 501c3.org to file all required documents for incorporation or a limited liability company (LLC).
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Obtain IRS forms 1023 and 8718. Form 1023 is an "Application for Recognition of Exemption." Form 8718 is a "User Fee for Exempt Organization Determination Letter Request." Fill out these forms and file them with the application of incorporation. Without these, your organization will be treated like any other for-profit company. You will also need to file Form SS-4 to obtain an employer identification number for the organization.
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Contact your secretary of state to file state tax-exemption. Each state has different requirements and regulations, so be sure to ask the representative in your jurisdiction what is required. Also inquire about any special permits that may be required for the activities you do. You may need permits for raffles, auctions, or other business operations.
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Appoint a board of directions and write the bylaws of the organization. The board of directors designates how the organization will be run and appoints management.
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Write a press release to local media in the community where your organization will serve. Inform the media and public about the goal and direction of the organization and what people can do to help. Also send releases to local business communities such as the chamber of commerce to establish your organization and create partnerships with already established businesses.
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Tips & Warnings
File annual taxes even though you have tax-exempt status. Failure to do so may result in taxes and penalties regardless of the 501(c)3 status.
