I does a person start a non-profit organization? nt

[Javaman]

[Rosemary2205]

1. Contact a lawyer

there is A LOT of paperwork involved. You'll need a lawyer and a CPA.

[ayeshahaqqiqa]

3. If you don't, it does take A LOT of time organizing

and you can be on pins and needles wondering if you've done everything right. I've only done that once, and if I had to organize a non-profit again, I'd go to an attorney. Check around--you may find one who will help for a reduced rate, or even free!

[ayeshahaqqiqa]

2. You apply to your state

for a 501-C3. Your state should send you information that is needed. Generally, you need a Board of Directors (President, VP, Treasurer, Secretary, though in some states some of these positions can be combined), a mission statement, and a location, name, etc. I've been on the Board of several non-profits in Arkansas. Some have been incorporated for liability purposes--again, it depends on what you are wanting to do. You do have to pay a fee for incorporation, and again, that fee is probably different for each state. Good luck!

[Misskittycat]

11. Please let me clear up some errors in this entire thread. There are two

major and separate steps involved in the process. First, let's clarify the terminology. For ease of reference, I'll call what I think you want to do as a "charitable organization."

First, you need to "organize" the charitable organization. That is an issue of state law. There is no requirement that a charitable organization be incorporated, but most groups do, primarily for liability purposes. Most or all states allow these groups to form as (unincorporated) associations, by adopting Articles of Association and generally establishing a Board of Trustees or Board of Directors.

Assuming you'll organize as a corporation, then you refer to your state's corporation law. Most if not all states have a special category for organizations that are not run for profit. California, for example, has a distinct category of the Corporation Law dedicated to nonprofit corporations. It is called the California Nonprofit Corporation Law.

Within that separate group of statutes, a group may choose one of three categories: i.e., Public Benefit, Mutual Benefit, or Religious. Many organizations that operate in the public interest and all organizations that want to receive donations or grants are properly categorized under the Public Benefit category (or a similar designation under your state's law). The Articles of Incorporation to be filed are distinct from the Articles of Incorporation filed by a business corporation.

Since this part is a matter of state law, the filings are governed by and done with the State. Usually it is the Secretary of State or the Department of Corporations that takes care of this, including the filing and approval of the Articles of Incorporation and the payment of filing fees.

Once the organization is done, then you deal with the federal and state tax exemptions. The IRS approves all federal tax exemptions (from federal income tax). Go to the IRS website, and download Publication 557. It will make your head spin - guaranteed.

For states with income taxes, like California, there is also a need to apply for and receive a tax exemption from the state tax agency. In California, that is the Franchise Tax Board.

Once all of this is done, and it can take months, then you must run the organization properly.

Access to Certified Public Accountants with some experience with charitable organizations is a bit easier (except the cost, of course) than finding a lawyer with experience in this field. Most lawyers don't have any background in this field at all.

If you do succeed in finding professional help, you may possible get a somewhat reduced rate, but don't expect these people to work for free. First, most attorneys and CPA's who have any knowledge of this field at all are already volunteering for certain favorite organizations, so they are likely out of time. Second, you get what you pay for. Third, if you can't afford to spend some money on these fees, then you probably can't afford to get the organization off the ground and operational at all.

An alternative is to check in your community for organizations that already have federal tax exemptions -- known as Section 501(c)(3) organizations, because that is the section of the Internal Revenue Code that provides for the tax exemption -- and see if you can make an arrangement to come under the umbrella of their group. Obviously, you give up some control in that way, but you almost might obtain necessary expertise in that manner.

[TomInTib]

4. Do not try to do it yourself.

Unless you are an attorney and a CPA.

I run a non-profit in California and it took months to deal with it all.

[OPERATIONMINDCRIME]

5. Get A Lawyer (...and a proofreader)

[Cerridwen]

6. Go to the Secretary of State website for your state.

Under corporations, you'll find the forms to file and the regulations you need to know to form a 501(c)3. Some SOS sites explain the process better than others.


Then, go to irs.gov and look at the tax considerations for a (c)3 non-profit. Depending on what you're doing, you might be classified as a (c)4 - non-profit but not charitable, i.e., contributions to your corp are not tax-deductible and other non-charitable rules and regs apply.

It can get complex but if you take it one step at a time and can read legalese with some proficiency, you can take care of most the paperwork yourself.

Figuring out all the tax stuff might require a professional, however. Unless you're proficient in tax-speak.

:D

[Cleita]

7. Barnes & Noble has books on it if you want to read up on it

first. It's not much different than starting up a regular corporation. Also, along with a lawyer, you will need an accountant to make sure you keep your non-profit status because both are run the same and follow many of the same legal statutes.

[Misskittycat]

8. It can be done by yourself, but it's confusing and time-consuming.

Probably the best book available in layperson's language is from Nolo Press. I can't remember the exact title, but if you go to e.g., Amazon.com and type in Nolo Press, and search for "nonprofit organization" or "tax exemption" that should get you there. Or go to Nolo Press's web site.

[Lex]

9. Non-profit status (501(C)(3)) is conferred by the IRS so application needs to be made

with IRS (lengthy form) plus you will ALSO need to apply for corporate status within your state, usually at the Secretary of State's office.

Good luck.

[MiniMe]

13. Yes, and you must be very careful about what section of non-profit

you apply under. I work for a 501(c)(6), which is a non-profit, but not a charitable organization. If you are a 501(c)(3), you are in the same category as a church, and you can't spout politics. There are also rules about if contributions are deductable, they are under a c3, but not under a c6.

[Lex]

14. Exactly.

I think only those attorneys who understand the complexities should take it on as a client matter.

[LoZoccolo]

10. Whatever you do, don't get your advice from...

...Bev Harris.

I will admit here, however, that Ralph Nader has started some very useful non-profit organizations. Go Nader! :thumbsup:

[orleans]

12. if you want to take the time to read & research this you can do it yourself

i did.

i wouldn't want to have to do it again--but if you have the time to research the process you can do it yourself.

if you have the money for a lawyer you could go that route too.

good luck in your endeavors--whatever they are.