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How to Start a 501(c)(3) Nonpro!t

Just like with any business, there is a lot that goes into starting a nonpro!t…research, planning,
fundraising, etc. There are also legal, accounting, and technical hurdles that must be cleared.
This page takes a look at those latter tasks that make up a big part of our SureStart Nonpro!t Let’s Talk About Your Plans!
Formation Plan here at Foundation Group.
Please !ll out the form below and we will get
in touch with you shortly. The more
Step 1. Establish a Nonpro!t Corporation information you provide, the better equipped
our team specialist will be to answer your
This is a state-level process that establishes a nonpro!t, corporate entity by the !ling of Articles of questions.
Incorporation. The vast majority of nonpro!ts organize as corporations for a variety of reasons,
including liability protection for the o"cers, directors and other key individuals. And, you have our SPAM-FREE Guarantee.
Your information is always safe with us!
Other parts of this initial process usually include obtaining a federal tax ID number (FEIN) from the
Name *
IRS and the preparation of bylaws, the governance rules the board of directors must follow.

Step 2. Obtain IRS 501(c)(3) Status First Last

Email *
This next step is much more complex than incorporating. To obtain 501(c)(3) status, a nonpro!t
corporation must apply to the Internal Revenue Service for recognition of tax exemption by !ling
IRS Form 1023. Relatively speaking, forming the corporation is fairly straightforward (assuming that Phone *
one completely understands the process). Applying for 501(c) (3) status, however, is another story
altogether.

Form 1023 itself is up to 28 pages long. With the required attachments, schedules and other Mailing State *
Please select the state in which your nonpro!t will be located.
materials that may be necessary, it is not uncommon for these submissions to the IRS to be up to
100 pages. Think of Form 1023 as an IRS examination. Instead of an audit of a tax return, the 501(c) Alabama
(3) application process is more like an audit of proposed (and/or previous) activity. It is a thorough
Purpose of Your Organization *
examination of the organization’s governing structure, purpose and planned programs. The IRS is
Please select the category that best describes your
looking to make sure that the organization is formed for exclusively 501(c)(3) purposes and that its organization.
programs are designed to ful!ll these stated purposes. In addition, the IRS is looking closely for
con#icts-of-interest and the potential for bene!t to insiders, both possible grounds for denial. Religious / Church

Nonpro!t's Website

Optional

% Learn more by watching our free, “Starting a Nonprofit” YouTube video series
More Info about Your Purpose
Use this space to provide us with a little more information
about your organization's purpose and/or programs(s).

Step 3. State Compliance Issues Optional. Max 800

characters.

While obtaining 501(c)(3) status grants your new nonpro!t federal tax exemption, there are two
other, critical issues that must be addressed.

"
Charitable Solicitations Registration – This is a required registration in 40 states and is
0 of 800 max characters
# usually administered through the Attorney General’s o"ce, though not always. Most states
require registration prior to soliciting donations. Does your nonpro!t already exist? *
( State Corporate Tax Exemption – Most states recognize the federal 501(c)(3) status as valid Just getting started and have not done anything yet
for state corporate tax exemption. California and Texas are big exceptions, requiring their own
$ Initial Board of Directors *
application process for charity status in their state. Several other states require a separate
) application, but those are typically simpler registrations. I have a board of directors

Gross Revenue Projection *

How Can Foundation Group Help? Under $50,000

Startup Funds *
Nobody knows this process better than us. Our team members are career professionals who
I have funds available for necessary startup costs.
understand exactly what is required for your organization to succeed. We have assisted over
20,000 organizations since our inception in 1995 and have maintained a 100% IRS approval rate. Please con!rm your request.

Our team is managed by IRS-licensed tax professionals. Our approach is to work with you, one- on-
I'm not a robot
one, helping you properly structure your nonpro!t, not only for IRS approval, but also for long-term reCAPTCHA
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success. And once you are approved, we provide ongoing, state and federal compliance services
throughout the life of your nonpro!t.
Submit
Starting a nonpro!t is serious business…and we take it as seriously as you do. Our team deeply
engages with you to guarantee that your 501(c)(3) will be properly structured, will be approved by
the IRS, and that you will want to be one of our testimonials!

“ If you are serious

about getting your organization tax
exempt, then choose the Foundation
“ Over a year ago, I
Group. I had the pleasure to utilize their
services and they walked me through
the application process step by step. The
IRS is not going to mess around with an
needed to create a 501c3 for my youth
development program. I had a !scal
“ They are everything
sponsor for years before, but it was time
to manage the process myself. FG was
EXTREMELY helpful, extremely patient in
answering all of my questions, diligent in
advertised. Right on top of things
through the process, I am ADD and they
“
did not let anything slip and helped me
through the whole process. Excellent
service

Brian Dawton Ryan Burke Je! Piersall

6 years ago a month ago 4 months ago

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