How Do I Start a 501c3 in Alabama? Starting a 501(c)(3) Nonprofit in Alabama

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To start a 501(c)(3) in Alabama:

  1. Form a corporation.
  2. Obtain a federal tax identification number from the IRS.
  3. Apply for 501(c)(3) status with the IRS.
  4. Register with Alabama as a charitable organization.

Starting a 501(c)(3) nonprofit may seem complicated but with the right information and persistence, it’s achievable. Establishing a nonprofit requires strategy, planning, commitment, and organization.

There are three basic steps to consider:

  1. Consider the work your organization will do and ensure a 501(c)(3) fits your vision. We can advise if needed.
  2. File the articles of incorporation. This typically costs about $100.
  3. File IRS Form 1023 for $600 or Form 1023EZ for $275. The IRS processes applications as quickly as possible in order received.

To qualify for 501(c)(3) tax-exemption, make sure to:

  • Select the organization’s purpose per 501(c)(3) IRC categories.
  • Choose a structure – the most common is a corporation.
  • Decide on the name for the organization.

Completing the IRS paperwork can be extensive, often taking up to 50 pages with details required about the purpose, programs, and governance of the organization. Consider hiring a professional to help file and increase the chances of approval.

If you aim to apply for retroactive 501(c)(3) status, you must file Form 1023 within 27 months of filing your Articles of Incorporation.

In some cases, working with an existing organization may be a more viable option than starting a new 501(c)(3) from scratch.

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