How to Become a Non-Profit Organization in California

Nonprofit organizations in California are corporations that are governed by section 5000 of the California Corporations Code. The state recognizes three specific types of nonprofit corporations--those created for religious purposes, mutual benefit and public benefit. Nonprofit corporations, like all corporations, must be registered with the California Secretary of State. To register the business, you must draft your company's "Articles of Incorporation" by using word processing software, and submit them to the Secretary of State.

Instructions

1. Obtain the sample Articles of Incorporation from the California Secretary of State. Review the format for "Nonprofit Mutual Benefit, Public Benefit or Religious" sample forms for the type of nonprofit organization that you are starting. You can obtain the form from the California Secretary of State website or request a hard copy by calling the office at 916-657-5448.

2. Provide the name of the corporation in Article I. A statement such as, "The name of the corporation is . . . " is sufficient.

3. State the type of nonprofit organization that you are creating and its purpose in Article II. California recognizes mutual benefit, public benefit and religious nonprofit organizations as organization types. If you are creating a public benefit corporation, you must state whether the corporation is for public or charitable purposes, or both. Further, you must state the "specific purpose" of the nonprofit.

4. List the name and address of the organization's registered agent in Article III. Corporations that operate in California must have a registered agent in the state. A registered agent is a person or company that receives service of process for the business. "Service of process" is the name given to a complaint or summons that notifies a defendant that he is being sued.

5. State the specific purpose of the business and indicate that the business is not being created "substantially" for any other purpose in Article IV.

6. Provide language indicating that the nonprofit organization's property will be used for the corporation's specific purposes and not to benefit any private parties or owners.

7. Sign the document and submit it to the Secretary of State with the filing fee of $30. You can mail the Articles of Incorporation to the Secretary of State at "California Secretary of State, Document Filing Support Unit, P.O. Box 944260, Sacramento, CA 94244-2600." You can also file the document in person by taking it to Secretary of State offices located at "1500 11th St., 3rd Floor, Sacramento, CA 95814" or "300 South Spring St., Room 12513, Los Angeles, CA 90013."

Tips & Warnings

• Consult an attorney and an accountant when creating a nonprofit corporation. Many important considerations particular to each individual business must be discussed prior to registering your business with the state.

• Carefully follow the instructions and format provided in the sample form to avoid any delay in your filing.

References

• California Secretary of State: Nonprofit Mutual Benefit, Public Benefit or Religious
• California Secretary of State: Forms, Fees & Samples