Starting a nonprofit, charitable organization under Internal Revenue Service codes regulating such bodies will require you to incorporate as a 501(c)(3) organization. Various 501(c) designations are available for tax-exempt organizations, but a (3) designation allows donors to your nonprofit to receive a tax deduction for any contributions they make to you. You will operate under a variety of tax and operating rules, including limits placed on the types of activities you pursue and amount of money any one person or entity can donate.
Step 1
Read the IRS rules for starting a 501(c)(3) organization. You can download them from the IRS website. The website contains a tutorial, FAQ sheet and more assistance.
Step 2
Create a board of directors, which include a president, one or more vice presidents, secretary and treasurer. Create job descriptions for each position. Create a path of succession and election or appointment procedures for future boards.
Step 3
Write articles of incorporation and file them in the state in which you will register your organization. Articles of incorporation are simple forms, requiring information such as the name and address of the organization, purpose, and name and address of the board members. Different states have different requirements and you can download them from your state's secretary of state website. Mail your articles of incorporation and any filing fee to the appropriate office.
Step 4
Complete Form SS-4, Application for Employer Identification Number, and mail it to the IRS. Even if you have no employees, you will need a tax ID number to operate. Obtain the form at the IRS website, complete an online application or call 800-829-4933.
Step 5
Write bylaws that include information required by the IRS for a 501(c)(3) organization. Bylaws will include such information as your purpose, delineation of board members, length of board member terms and organization dissolution procedures.
Step 6
Complete an IRS Form 1023, Application for Recognition of Exemption, and mail it to the IRS with any required documents, such as articles of incorporation, bylaws and proposed budget and remit any fees.
Step 7
Notify the public of your status as a charity if you receive a letter of 501(c)(3) recognition from the IRS. Notify all vendors with whom you will work to receive tax-exempt invoicing. Notify the post office of your status to receive nonprofit mailing rates.
Things You'll Need
- Board of directors
- Articles of incorporation
- Bylaws
- IRS form Form SS-4
- IRS form Form 1023
- Incorporation filing fee
- Form 1023 application fee
