What does it take to set up a non-profit? The setup process of a non-profit organization can be complicated if you are not well informed. That's why most of us quit our ideas to make this world a better place. But, with a proper guide and reliable tea, you can set up your nonprofit organization without any hassle. How to set up a nonprofit organization? Below, steps of establishing a nonprofit organization are mentioned. Follow these steps to make your dream come true. •
Name selection: Your organization must have a unique and catchy name. You cannot use a name that has been used before in your state. The name has to end with a corporate designation or its abbreviated form. From the corporate office of your state, you can find out if your selected name is available. If you want to reserve a name for a limited time, you have to pay a fee.
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Filing articles of incorporation: In your state corporate office, filing an article of incorporation is essential. This file will include all your basic information like the name of your organization and its address. Though, you can make this file yourself but make sure to add specific language to receive tax-exempt status. Your article must go with the law of your state. So, learning the requirements of a nonprofit is a must for you.
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Applying for tax-exemption: If you are not sure of how to register a 501c3, you are not alone. To start the organization, you need to apply for IRS tax exemption. So, apply for a tax-exemption status by filling right documents. You can also apply for this online. In some states, nonprofits have to apply separately for state tax exemption.
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Drafting bylaws: Any organization runs on some basic rules and mottos. Nonprofit bylaws mean the rules regarding meetings, voting, and elections. Usually, these byways are formed on the first board meeting of the organization.
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Appointing directors: Directors are the heads of a nonprofit organizations. They make all the policies and take financial decisions. In some states, nonprofits can have only directors, but for other states, having at least three directors is a must.
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Getting license: You need to visit the licensing agency of your state to get permits for your organization. For example, if you sell anything, you need a sales tax permit.
Thus, by following all these steps, you can get your organization stated. This process may take some more time but never lose hope in your dreams and ideas.