To start a 501(c)3 you must first have an understanding of what one is. A 501(c)3 is a non-profit organization exempt from income tax that is able to receive charitable contributions that are tax-deductible. The goal of the non-profit is to support an issue of public or private interest for non-commercial purposes. The following information may be used as a guide through the start-up process; however, this can be a daunting task. It is suggested that you consult with an attorney, preferably one with non-profit experience, to be sure all of your applications and paperwork are up to speed.

 

Once you have decided to form a non-profit group, you will want to come up with a short, compelling mission statement that describes your organization’s purpose and how it is unique from others. You will also need to find a quality group of individuals eager to devote their time and efforts to this mission to form your board of directors.

 

After these key pieces are in place, you will need to get official by filing Articles of Incorporation. Your state Attorney General’s or state Secretary’s office will have the necessary information to complete this process. Articles of Incorporation are important as they protect the board and staff from legal liability brought about by the organization.

 

The next few steps are to be completed by your board and include drafting bylaws, developing a working budget, and developing an accounting system. These processes will allow your newly formed non-profit to run smoothly in the future by putting specific guidelines in place now. Remember that as a non-profit you are required to maintain documentation of financial statements and meeting minutes.

 

Now that your organization has been formed and you have your initial rules and regulations in place it is time to file for 501(c)3 status. You will want to acquire Form 1023 and Publication 557 from your local IRS office. Using the instructions found in Publication 557, you will need to complete Form 1023 and submit it with the applicable filing fee (based on your organization’s budget). You will also need to obtain a federal employer identification number (EIN) using Form SS-4, regardless of whether or not you have employees. To apply for exemption from income, sales, and property tax, you will want to get in contact with your state and local Departments of Revenue and your county/municipal clerk’s offices.

 

Becoming a 501(c)3 can appear overwhelming, but by having a few key items in place, it can make the process smooth and rather painless. If you run in to any snags along the way, remember to consult with a lawyer, many that work with non-profits offer their services pro bono. Good luck with your organization and start fulfilling your mission today!