The following are fundamental ingredients in the creation of a non-profit organization:
- a mission statement that demonstrates the organization’s charitable purpose, focus, and values
- High-quality programs and services that are responsive to community needs and do not duplicate the efforts of other organizations
- stable and diversified sources of income
- transparency in the management and governance of the organization
- adequate facilities
To learn more right now about the process of starting a nonprofit, please view our recorded webinars or short online courses:
- Webinar Series for Newly Established Organizations
- Before Seeking Charitable Giving: A Checklist for Newly Established Organizations
Here are the main steps in creating a non-profit organization:
- Draft and file the articles of incorporation for your organization with the Secretary of State or your state attorney’s office. Locate your state office.
- Apply for designation as a federal tax-exempt organization from the federal agency that regulates income taxes ( IRS). Please note that the IRS may take anywhere from 3 to 12 months to respond to your request. Download the application form with instructions.
- Register your organization with the regulatory agencies in each state where you plan to apply for funds. Locate regulatory offices in each state.
Laws and procedures for establishing a tax-exempt nonprofit organization vary from state to state. Look for local information in the following resources:
- State nonprofit associations offer information and guidance for those seeking to establish new organizations. Some also offer training, technical assistance, and consulting. Locate the association of nonprofit organizations in your state.
- There are lawyers and accountants with experience in the financial laws and regulations that govern nonprofit organizations. These people could advise your organization and evaluate its legal and financial documents for the constitution of the entity; They might even handle the entire process for your organization, in some cases charging reduced fees or nothing at all, as a pro bono service . Locate these services.
There are alternatives you might consider before forming a new organization:
- Volunteer with an organization with which you share values and whose causes are similar to yours.
- Establish a formal/legal arrangement between you or your group and a duly constituted organization that has a similar mission to your group. This agreement will allow the organization with which you or your group have affiliated to function as your fiscal agent. Under this type of financial sponsorship, your group will have options for philanthropic contributions. Learn about financial sponsorship >>