How do I start a non profit organization?

How To Start Non-Profit Organization in California

• Answer:

  Starting a nonprofit organization in California requires you to thoroughly plan and organize your group's setup and structure. Talk to stakeholders to find out how to best serve your clients, set up and structure your organization throughout the process of creating your nonprofit. Seek legal assistance if you need help navigating the maze of forming a nonprofit, such as filing for tax-exempt status with the federal government. Contact California's association for nonprofits or your local bar association to find reduced-fee and pro bono nonprofit lawyers if you need legal help and are on a budget. Difficulty: Challenging Instructions Talk to nonprofit and government leaders in your community to find out what kinds of services other nonprofits are offering in your area. Discuss your plans for creating a nonprofit with your intended clients. Avoid duplication of services. Recruit qualified board members for your board of directors. Draft your mission statement and your organization's vision statement. The mission statement tells exactly what you want your organization to accomplish and how it will go about doing so. Write your organization's articles of incorporation and file them with the California Secretary of State. A $30 application fee applies, and if you deliver the documents in person, there is an additional $15 charge. The California Secretary of State's Organization of California Nonprofit, Nonstock Corporations has example articles of incorporation after which you can model your organization's articles. Obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). The EIN is for tax filing and reporting purposes. File form SS-4, or request and EIN on the IRS website. Write your organization's bylaws. Bylaws state how the charity will be managed and who will run it. Consider drafting a conflict of interest policy that states that the members of the board and its officers, as well as others with an interest in the organization, will not gain any benefit from the organization's activities. A conflict of interest policy reassures donors that your nonprofit is capable of handling money ethically. Adopt your organization's bylaws and articles of incorporation at your first board meeting. Choose board officers, and authorize filing Form 1023 with the IRS that will give your organization federal and state tax-exempt status. Authorize the creation of a corporate bank account as well, and adopt a fiscal year. Register your organization with the Register of Charitable Trusts in the California Attorney General's office, which ensures money donated to your nonprofit is used for charitable purposes. Submit Form 1023 from the IRS and Form 3500 from the California Franchise Tax Board. These forms apply for tax exemption with the federal and state governments. These forms are available on the Franchise Tax Board and the IRS websites. Submit Form SI-100, the Statement of Information, from the California Secretary of State. It is available on the Secretary of State's website.