Nonprofits can be organized as corporations, trusts and unincorporated associations. For the purposes of this answer, Iu2019m going to focus on forming one as a corporation, since it is what a majority of nonprofits do.Decide who will be on the nonprofit board. Generally, it is preferable that a nonprofit have at least 3 independent directors. Also, it would be helpful for the board to discuss what the organizationu2019s mission, vision and activities would be.Figure out what sort of corporation you need to form. Some states, like New York, have a special u201cnot-for-profit corporationu201d type, while other states, like Delaware, require you to form a non-stock corporation.Prepare the corporate charter. Depending on the state, this would usually be called the Certificate of Incorporation or Articles of Incorporation. The charter will need specific language which would vary on a state by state basis, it also requires special language required by the IRS. The IRS has provided suggested language for their end here: Suggested Language for Corporations and Associations (per Publication 557)Execute and file the corporate charter with the state, with the requisite filing fees. Along with your filing, request a certified copy of the corporate charter u2024 this will be needed for both bank accounts and for the federal application.Meanwhile, prepare bylaws for your nonprofit. This sets out rules under which the affairs of your nonprofit would be conducted. It is also suggested to create certain policies that are integrated into the bylaws, such as a conflict of interest policy.Once the state has approved the filing, hold an organizational meeting where the directors ratify the certificate of incorporation and bylaws, and all other actions performed for the purpose of forming the corporation. If no directors were appointed in the certificate of incorporation, the organizational meeting should also serve to have the initial directora appointed.Complete Federal tax exemption paperwork. Assuming you are trying to form a 501c3, you will need to complete Form 1023. This provides information about your nonprofit, its mission and activities and finances. Depending on your particular circumstances, this may be a huge huge undertaking, so give yourself some time (including attachments, Iu2019ve filed 501c3 applications over 70 pages long). If you will be a small nonprofit and meet other requirements, you may be able to do Form 1023-EZ, which is much shorter. However, beware, as the application is there to help the IRS weed out ineligible organizations, so they do contain certain traps.Assuming all goes well, you will receive a positive determination letter from the IRS. Make copies and scans of this. It is proof that you are a 501c organization. You will need it for state level filings, google for nonprofits, and a host of other things.File any requisite state level paperwork. Most states require 501c3s fundraising in the state to register as a fundraiser or charity. If you are fundraising in multiple states, you may need to file in multiple states. Every state has its own rules.(Non)profit!I'm a lawyer, but not your lawyer. This is not legal advice, just general information, so depend on it at your own risk. The internet is a scary place, so don't believe every thing you read. If you need legal advice, hire a lawyer to be your lawyer =)
