Starting a 501(c)(3) Nonprofit Organization
The steps include choosing a name, writing purpose statement and bylaws, establishing a board of directors, filing articles of incorporation, applying for federal tax-exempt status as a 501(c)(3) and filing for state recognition of tax exemption.
Secretary of State’s Website and Filing Application
- Visit the Secretary of State’s website to access the filing application.
- You can also download the Articles of Incorporation form.
- The fee to incorporate as a nonprofit corporation is $25.
- Sales of tangible property by a church or nonprofit organization are exempt from the Sales and Use Tax.
Starting a 501(c)(3) Nonprofit in South Carolina
- To start a 501c3 nonprofit in South Carolina: start a nonprofit according to state rules then apply for 501c3 status with the IRS.
- Our 501(c)(3) formation packages start at $1,799 plus filing fees.
- We prepare and file registrations needed to become a 501(c)(3) nonprofit, saving you hours of time.
Maintaining 501(c)(3) Status and Filing Properly
- Once you receive federal tax-exempt status from the IRS, take steps to maintain 501(c)(3) status by filing an annual report and avoiding activities that would jeopardize status.
- For example, nonprofits must avoid lobbying.
Requirements and Regulations
- Proper filing is extremely important when starting a 501c3 nonprofit.
- The steps required: take time to consider the work your organization will do and if a 501c3 is the right entity.
- Apply with the IRS for official 501(c)(3) status.
- Select your purpose, choose a structure, and decide on a name.
Director and Officer Requirements
- The IRS requires nonprofits to have at least three directors.
- The majority should not be related.
- Officers include: A president, a secretary, and a treasurer.
- Officers can hold multiple titles if allowed.
Adopting Bylaws and Policies
- Adopt bylaws and a conflict of interest policy before applying for tax-exempt 501c3 status.
- Bylaws contain rules for meetings, electing officers, and directors.
- They are the internal operating manual.