Non-Profit (503C)

Starting a Nonprofit Organization – Step By Step Process

The Four Step Process to Starting a Nonprofit Organization:

Step One: We Start with drafting your bylaws, that gives purpose to the structure of the organization and creates a governing board, which gives the final authority for the organization.

Step Two: In the state of your choice, we will incorporate, you as a nonprofit corporation.

Step Three: From the IRS and the state your organization is based, you will obtain an tax-exempt status.

Step Four: After completing the above steps, their will be a few additional documents that pertain to your state compliance, annual reporting requirements, newly instituted IRS compliance policies, and sound corporate record keeping practices. This is a basic general overview of getting a Non-Profit (503C) incorporated. For more details, see content below.

When we assist a client in the establishment of a new organization, the specific process involves the following:

Developing bylaws and your board of Directors. After we discuss your purposes of the organization and go over the options for structuring, the following we will map out.  We outline the board of directors, and basic operational and administrative mechanisms, we will then precede by drafting the bylaws and a detailed explanatory memorandum that maps out your most important points. One often overlooked point that is crucial, is your choosing of the board of directors. With the selection of the initial directors, will determine the future of with how directors are selected.

Incorporation.  In most residing states the process is relatively simple. We will create the Articles of Incorporation that will generally comprise of a number of provisions that were already set in place in the bylaws.

Securing an tax-exempt status from the IRS. The process for obtaining and following up with the IRS is the most time consuming, for the two most important pieces that are required by the IRS.

  • Detailed statement outlining specially as possible the proposed activities of the new organizations.
  • Three year estimated budget of your organization.

Securing income and sales tax exemptions and completing the charitable registration in the state of incorporation. For more specific state and IRS filing requirements. please refer to your state filings,compliance and statutes section on the states government website.

Developing mandatory and best practices policies to meet the requirements of the Internal Revenue Code. Documents include compensation, conflict of interest, document retention and whistle-blower policies.

Additional Advice Regarding:

  • Creating a Board Meeting Minute Book and other corporate record keeping practices.
  • Risk management and insurance.
  • Contracts and relationships with third parties.

Once we have stepped you through the process and its completion, there a few FAQ legal questions that will come up as: maintaining tax exemption, governance and board procedures, liability concerns, licensing and protecting intellectual property, charitable contributions and donor relations, employee matters, contract/grant review and drafting, and real estate leasing and purchasing.

We provide counsel to each and every area of a newly established organization and as you grow, we are here each step of the way to develop and maintain a long-term relationship with you and your organization.