Steps to Starting a 501(c)(3) Nonprofit:
- Choosing a Name, Writing Purpose Statement, and Establishing Bylaws
- Board of Directors Recruitment
- Filing for Tax-Exempt Status
Becoming a 501(c)(3) Corporation:
- Choose a Purpose
- Form a Corporation
- File Paperwork with IRS
- Comply with State and Local Requirements
Three Simple Steps to Creating a 501c3 Nonprofit:
- Consider the Organization’s Work
- Incorporate and Obtain Tax ID
- Apply for 501c3 Status
Starting a 501(c)(3) nonprofit helps organizations by allowing them to solicit tax-exempt funds legally from donors. The process of how to start a 501c3 nonprofit organization can seem daunting, but we’re here to help. In this guide, you’ll find everything you need to know about starting a nonprofit, including information on how to name your nonprofit, file articles of incorporation, and apply for IRS tax-exempt status.
Completing IRS paperwork to start a 501(c)3 can take 50 pages with details required about purpose, programs and governance. Consider hiring a professional to help file and increase approval chances. To apply retroactive 501(c)3 status, file Form 1023 within 27 months of filing Articles of Incorporation.
A 501(c)(3) organization is nonprofit and tax-exempt. The IRS allows qualifying nonprofits tax exemption under Section 501(c)(3). The exempt purposes are charitable, religious, educational, scientific, literary, public safety, amateur sports, and preventing cruelty.
501c3 refers to the tax code section granting tax exemption. This eliminates federal tax and makes donations deductible. "Nonprofit" refers to benefiting society, not providing financial benefit. Nonprofits operate under different formats depending on the state.