- 1). Check the availability of your desired name for your nonprofit charity. You can call your Secretary of State's office to inquire about the availability. The name of your organization cannot belong to another business entity within your state.
- 2). Appoint initial directors to head your board of directors. The directors of a nonprofit charity provide the internal management of the organization. Directors usually draft the bylaws, establish voting rules for directors and members and develop the initial budgets.
- 3). Draft the bylaws for your nonprofit charity. The bylaws are the rules established by directors who govern the internal operations of a nonprofit charity. Nonprofits are given flexibility when creating bylaws because no set guidelines exist.
- 4). Fill out the Articles of Incorporation form. The Articles of Incorporation is the application used by states for the formation of nonprofits. You can obtain this form from your Secretary of State's office.
- 5). Mail the Articles of Incorporation and the current filing fee to your Secretary of State's office. You will receive correspondence in the mail stating whether or not your nonprofit was successfully formed.
- 6). Visit the Internal Revenue Service website to apply for an Employer Identification Number (EIN). The number is used by the IRS to identify nonprofit charities. You can also apply via phone or fax.
- 7). Fill out and mail Form 1023 to the IRS (P.O. Box 12192 Covington, KY. 41012-0192). Form 1023 is used by the IRS to apply for tax-exempt status under Section 501 of the Internal Revenue Code. The IRS will mail you a determination letter outlining which section of the Internal Revenue Code your nonprofit charity falls under.
- 8). Register with your state to receive state tax-exempt status. Most states automatically grant this status to 501 (c)(3) nonprofit charities. You will need to submit a copy of your IRS determination letter, Articles of Incorporation and bylaws as well.
- 9). Register with your state to obtain permission to solicit contributions. Some nonprofits, such as churches, are exempt from having to register. Nonprofits that are not exempt will also have to submit a copy of the IRS determination letter, Articles of Incorporation and bylaws as well.
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