How to Start a Non Profit in California

Just like any other business start-up, starting up a nonprofit organization in California can be daunting. Once you move beyond the drawing board stage, there are myriads of forms to complete and rules and guidelines to follow. Don't be overwhelmed by all the hoops you have to jump through. With a little determination and a some attention to the details, you'll be well on your way to starting up a nonprofit.

Instructions

1. 

   Write a mission statement. Keep it short and concise. Describe the services you'll offer, whom they benefit and how you'll carry out the mission. Your mission statement will clarify the nonprofit's goals. It is also a requirement if you decide to incorporate.

2. 

   Decide what type of nonprofit you want to be. Consider whether you want to be an informal nonprofit, like a self-help group, or a formal nonprofit. If you decide to start an informal nonprofit, you're ready to begin. A formal nonprofit, however, requires a little more planning.

3. 

   If you decide to go the formal nonprofit route, choose whether you're going to be an organization or a corporation. Check out the links in references one and two. Read about the differences between the two and decide which is better for you. If you're not sure about incorporating, you can always decide to do it after start-up.

4. 

   Get a 501(c)(3) form from the Internal Revenue Service. This step isn't required but is recommended if you want your nonprofit to be exempt from federal taxes. Contact the California Franchise Tax Board to file for state tax exemption. Hire a lawyer for advice on whether to file these forms and how to go about doing it.

5. 

   Research your city and county requirements for nonprofit business licenses and permits. See reference 3, a database of California's local requirements, or visit or telephone your city's government and ask about these requirements.

6. 

   Read the guidelines and tips in the resources below. They give helpful information on how to retain a lawyer, start a bank account, hire an accountant, find sponsors, etc.

References

• Free Management Library: Starting a Nonprofit Organization
• Citizen Media Law Project: Forming a Nonprofit Corporation
• Governor's Office of Economic Development: Business Permits Made Simple
• Nonprofit Resource Center: Starting a Nonprofit

Resources

• Nolo: How to Form a Nonprofit Corporation in California
• Get Ready Get Set: What You Need to Know Before Starting a Nonprofit
• Authenticity Consulting: How to Start a Nonprofit Organization