How to Form a Nonprofit Organization

1. Choose a name for your nonprofit. (While you’re at it, select and reserve a Web domain name.)
2. Form your incorporating board of directors (often only three people are needed).
3. Write Articles of Incorporation including a statement of your purpose and submit them to the appropriate office in your appropriate state government with the required fee.
4. Wait for a response from your state. (In some states you can expedite the process by paying a surcharge.)
5. Obtain a Federal Employer Identification Number, submitting IRS Form SS-4.
6. Develop organizational bylaws-the rules by which you will operate.
7. Hold your first board meeting.
8. Review IRS Publication 557, instructions for filing for tax exemption. (call 1-800-TAX-FORM.)
9. File IRS Form 1023 if you are applying to become a 501(c)(3) tax exempt organization (preferably within 15 months of the date of incorporation). Other kinds of nonprofits organizations may file Form 1024.
10.Pay filing fees of $500 if you anticipate having revenue of over $10,000 per year, or $150 if you anticipate having revenue of less than $10,000 per year and the accompanying Form 8718.
11. Sit back and relex. Celebrate when your letter of determination arrives!
12. Register as a charity within your state.  While you’re at it, check your state’s laws: some require you to apply for a separate (in addition to federal) tax exemption.

Along the Way to your Nonprofit Status

1. Consider using a fiscal sponsor so you can begin offering programs and developing a reputation.
2. Once you’ve incorporated and filed IRS Form 1023 you can begin to operate and even solicit contributions as long as you tell donors the application has been filed.