Register a Nonprofit Organization

Register a Nonprofit Organization

Register a Nonprofit Organization : Multi-thousand tips to make your life easier.

Establishing a new nonprofit organization will provide your group with many advantages, such as tax exemptions. However, along with these advantages come responsibilities to maintain your group's status as a nonprofit. Knowing all of this and more is part of the first steps in establishing a nonprofit organization. After understanding its nature, it will be time to register it. The process varies depending on your needs, the state, and your purpose. Below are the usual steps taken when registering a nonprofit organization:

• Write the organization's mission statement. The mission statement should describe the organization's charitable purpose. It should answer the question, "Why does the organization exist?" The statement must be reviewed and approved by the board members.
• Recruit enough board members. Get help from a state attorney if you want to incorporate the nonprofit organization in the state. You will be required to have a certain number of board members and define their functions. If the organization will not be incorporated, it is still necessary to form the board as the group's guide.
• Hire a lawyer. You need someone to review all the documents before submitting them. The lawyer will help you through submitting articles, tax exemption applications, and many other processes.
• Get a bank account. The bank should understand what new nonprofit organizations need in terms of banking.
• Hire an insurance agent. This is only important if you need help insuring liabilities and properties. An insurance agent will also be helpful if you will be hiring staff to help you with health insurance benefits, life insurance benefits, and workers' compensation.
• Write the articles of incorporation. This is needed if the nonprofit organization will be incorporated in the state. Draft the articles first and then review them. Ask a lawyer to review the articles as well, and then have them signed by the board.
• Write the organization's bylaws. These will describe how the nonprofit organization will operate and build the staff. Check the state requirements as well to learn the necessary sections that must be included in the bylaws.
• File the nonprofit organization as incorporated in the state. You'll need to submit the articles and bylaws for this. The state will also require reports from the organization. Provide those, too, if needed and if available.
• File the tax exemption with the IRS. The nonprofit organization will be exempt from paying taxes if you file for this. But before you do, the board must approve the application first. File for state tax exemptions after the IRS exemption is granted.
• Get a solicitation license. Nonprofit organizations are mostly run by solicitations. If you are planning to do the same, it's better to check with the city whether a solicitation license is required. Process the mail permit as well so you can enjoy discounts for bulk mailings.
• Apply for a federal employer number. You need this when you start hiring employees. Get FICA as well after hiring employees. Unemployment insurance requests will also be needed when hiring employees.

Read more about the state's guidelines on running nonprofit organizations. It's always best to check the legality of your actions and to complete activities required of the nonprofit organization. The group should also function based on the drafted mission statement, or it will cease its reason for existence.