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The Complete Guide to Registering a 501c3 Nonprofit

<br><br><br>https://donorbox.org/nonprofit-blog/how-to-start-a-501c3/<br><br>The Complete Guide to Registering a 501c3 Nonprofit<br><br>

janathanmeltoe
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The Complete Guide to Registering a 501c3 Nonprofit

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  1. The Complete Guide to Registering a 501c3 Nonprofit

  2. Complying with bylaws, attaining tax-exempt status, managing a board of directors… Starting a nonprofit can seem like a complicated and daunting task

  3. Equipped with the right information and a resilient approach, the process is easier than it seems

  4. This is not to say that establishing a nonprofit comes without its challenges

  5. There are many reasons why organizations choose to apply for the official 501(c)(3) status

  6. Enhanced credibility Tax-deductible donations Tax-exempt status Potential donors may be more inclined to give to an organization that has an official nonprofit status Donations made by individuals to the nonprofit corporation may be tax-deductible Qualifying nonprofits can apply for federal and state tax-exempt status Possible exemption from certain property taxes Reduced postage rates

  7. To help you move through the motions of establishing a nonprofit, we’ve detailed out a guide below

  8. STEP 1 GET CLEAR ON YOUR PURPOSE A clear purpose motivates staff and volunteers, attracts donors and supporters, and helps build a positive image amongst the general public

  9. DECIDE WHAT TYPE OF NONPROFIT YOU WANT TO ESTABLISH STEP 2 Based on your nonprofit’s purpose, decide which type of nonprofit you want to register as (e.g. arts, charities, education, politics, religion, research)

  10. 8 BROAD CATEGORIES IN ORDER TO APPLY FOR TAX EXEMPTION Testing for public safety Charitable Religious Educational Cruelty prevention for children and animals Youth/amateur sports competition Literary Scientific

  11. STEP 3 NAME YOUR NONPROFIT Safe to say you should select a name that’s unique and somehow related to the main activities of your nonprofit

  12. STEP 4 FORM A BOARD Some states require that you list the names of your board members in your incorporation documents

  13. Your board can help you with the incorporation and the rest of the sometimes-challenging process of establishing a nonprofit

  14. STEP 5 WRITE UP YOUR BYLAWS The bylaws contain the operating rules and provide a framework for your management procedures

  15. FEEL FREE TO LOOK UP BYLAWS TEMPLATES ONLINE The corporation’s activities will be limited to the purposes set out in section 501(c)(3) of the Internal Revenue Code. The organization will not engage in political or legislative activities prohibited under section 501(c)(3) Upon dissolution of the corporation, any remaining assets will be distributed to another nonprofit

  16. PREPARE AND FILE YOUR INCORPORATION PAPERWORK STEP 6 Having chosen a name for your nonprofit and appointed a board of directors, completing and filing your incorporation paperwork should be simple

  17. If you want to incorporate in another state, you would need to register and apply for separate tax exemptions You must file “articles of incorporation” with your state’s corporate filing office Filings and fees will vary by state After completing your paperwork, you will be ready to send them to your state filing office Pretty much every major transaction your nonprofit engages in will require an EIN EIN will be used to track your organization’s financial activity

  18. STEP 7 FILE FOR 501(C)(3) TAX-EXEMPT STATUS To get the most out of your tax-exempt status, file your Form 1023 within 27 months of the date you file your nonprofit articles of incorporation

  19. SHORTER APPLICATION FORM (1023-EZ) The corporation’s activities will be limited to the purposes set out in section 501(c)(3) of the Internal Revenue Code. The organization will not engage in political or legislative activities prohibited under section 501(c)(3) Upon dissolution of the corporation, any remaining assets will be distributed to another nonprofit

  20. BEFORE YOU START FILLING OUT FORM 1023, BE SURE YOU HAVE Filed your articles of incorporation Held your first nonprofit meeting Prepared your bylaws

  21. YOUR ARTICLES OF INCORPORATION AND/OR YOUR BYLAWS A statement of your exempt purpose(s) A dissolution clause A conflict of interest clause

  22. STEP 8 ENSURE ONGOING COMPLIANCE Once the state approves everything, you should prepare for annual reporting requirements

  23. It is advisable that you consult with local expertise to ensure that your new nonprofit complies with state and federal laws and requirements

  24. MORE INFORMATION https://donorbox.org/ nonprofit-blog/how- to-start-a-501c3/

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