To start a nonprofit organization, follow these key steps:
1. Conduct Research and Needs Assessment
- Determine if there is a real need for your nonprofit by talking to community members, stakeholders, and reviewing existing organizations addressing similar issues.
- Gather data through surveys, interviews, or reports to support your case and clarify your mission
2. Develop a Strong Foundation
- Define your nonprofit’s purpose and mission.
- Build a board of directors (usually at least three members, including roles like President, Secretary, and Treasurer). Board members should ideally be unrelated and bring diverse skills such as fundraising or marketing
- Draft your bylaws, which govern how your organization will operate, including board elections and decision-making processes
3. Incorporate Your Nonprofit
- File articles of incorporation with your state government to officially register your nonprofit and protect board members from personal liability.
- Incorporation requirements and fees vary by state, so check your state’s Secretary of State website for details
4. Obtain an Employer Identification Number (EIN)
- Apply for an EIN from the IRS, which is necessary for tax purposes, opening a bank account, and filing for tax-exempt status
5. Apply for Federal and State Tax-Exempt Status
- File IRS Form 1023 (or 1023-EZ for smaller nonprofits) to apply for 501(c)(3) tax-exempt status, allowing donors to make tax-deductible contributions.
- Check your state’s requirements for tax exemption and charitable registration, which may include additional filings and annual reports
6. Hold Your First Board Meeting
- Officially adopt your bylaws and record meeting minutes.
- Discuss initial plans such as fundraising goals and organizational strategy
7. Comply with Ongoing Requirements
- Maintain good standing by filing annual reports, financial audits, and other state-specific compliance documents.
- Keep thorough records of board meetings and financial activities for transparency and IRS audits
Starting a nonprofit requires careful planning, legal compliance, and ongoing management, but following these steps will help establish a solid foundation for your organization’s success