Choose a unique name that reflects its mission and is not already in use. Ensure it complies with state guidelines. Conduct a search to ensure availability. Develop bylaws outlining internal rules and procedures governing your nonprofit’s operation.
Steps to Forming a Nonprofit
To form a 501(c)(3) nonprofit organization, follow these steps:
- Name Your Nonprofit
- Choose Your Statutory Agent
- Select Your Board Members & Officers
- File the Certificate of Formation
- Fulfill the Eligibility Requirements
Registration and Compliance
Certificate of Formation
The Certificate of Formation describes your non-profit and should include the following information:
- Name of the nonprofit
- Certificate of name reservation
- Number of members
- Filer’s name and address
Tax Exempt Status
To qualify for 501(c)(3) status, an organization must be charitable and not-for-profit. The organization cannot benefit private interests.
Operating in Arizona
- The non-profit must have a valid Arizona address and an Arizona statutory agent.
- Register a nonprofit corporation with the Arizona Corporation Commission.
- Apply for 501(c)(3) tax exempt status with the IRS.
- Use profits to operate or donate to another eligible charity.
- File articles of incorporation with the secretary of state.
- Benefits include tax exemptions and limited liability protection.
Costs and Filing Details
Filing Fees
- State filing fee: $40
- Additional cost for expedited filing: $35
Total Estimated Costs
Expect to pay $300 – $687, which includes filing fees, licenses, and 501c3 exemption.
Nonprofits must also pay relevant tax accounts with the Arizona Department of Revenue and may need assistance from a specialist when applying for 501c3 status to avoid errors.
Important Considerations
- The nonprofit’s registered agent must be located in Arizona to receive documentation.
- Nonprofit filings must be verified with a certified copy from the Arizona Corporation Commission.
- IRS can revoke 501(c)(3) status if compliance is not maintained.
Employer Identification Number (EIN)
Get an EIN to open bank accounts, collect donations, and apply for tax exemptions.
Business License
It is necessary to inquire whether a specific nonprofit requires a business license in Arizona.
Remember to first decide whether your organization will be a 501(c)(3) and to create a mission statement.