start a 501(c)3 charitable organization.
Starting a charity is an enormous undertaking. In addition to carrying on the organization's charitable goals, the founder of the organization also has to do all of the initial legal work to start a 501(c)3 corporation. According to the IRS, any corporation that is established for "charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and preventing cruelty to children or animals" qualifies for 501(c)3 status as a tax-exempt charity.
Instructions
1. Form a corporation with your secretary of state. Most states have a filing fee ranging from $75 to $150 for forming a corporation. A corporation is formed by filing articles of incorporation with the office of the secretary of state where you live. You can find articles of incorporation on the website of the secretary of state in your home state. Some states use different articles of incorporation for for-profit entities than for non-profit entities. Either way you will need to select a name for your non-profit and list its founding members. You must select a name that is not already in use by another entity in your state. Most states offer an online name search directory that will let you check if the name you would like to use is already taken or if its available for use.
2. File IRS form 1023. Until form 1023 is filed with the IRS the corporation you established is simply a for-profit corporation. Fill out the form in its entirety and submit it to the IRS for approval before you begin your charitable activities. Check with your secretary of state for state-level exemption requirements as each state handles this process differently.
3. Form your board of directors. Like all corporations, 501(c)3 corporations need to have a board of directors that holds regular meetings and governs the organization. As the founder, you should sit on the board of directors but you should also enlist the help of influential community members that also have a passion for your charitable cause. Your board of directors should draft a set of corporate bylaws for the board of the organization to use in its governance.
Tags: board directors, secretary state, articles incorporation, board directors should, directors should, form 1023
