Noprofit
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Before you start your nonprofit, its helpful to realize that the phrase “starting a nonprofit” can mean many things. Read the following very basic information to begin thinking about what you mean when you set out to “start a nonprofit”.
– You can be a nonprofit organization just by getting together with some friends, eg, to form a self-help group. In this case, youre an informal nonprofit organization.
– Consider incorporating your nonprofit so it exists as a separate legal organization in order to a) own its own property and its own bank account; b) ensure that the nonprofit can continue on its own (even after youre gone); and c) protect yourself personally for operations of the nonprofit. You incorporate your nonprofit by filing articles of incorporation with the appropriate local state office. (An incorporated nonprofit requires a board of directors.)
– If you want to be exempt from federal taxes (and maybe some other taxes, too), you should file with the IRS to be a tax-exempt organization. (The IRS states that you must be a corporation, community chest, fund, or foundation to receive tax-exempt status. Articles of association may also be used in place of incorporation.) (Probably the most well known type of nonprofits is a the IRS classification of 501(c)(3), a “charitable nonprofit.)
– Depending on the nature of your organization, you may also granted tax-deductible status from the IRS. Publication 526 lists the types of organizations to which donations are deductible.
– So, if you did all of these steps, youd be an incorporated, tax-exempt nonprofit that could receive tax deductible donations.
– The particular steps you take depend on your plans for your organization, including the nature of its services. They also depend on how the IRS interprets the nature of your organization, including its services.