Welcome to my new blog where I will be posting articles to increase your knowledge about nonprofit best practices within all of the different levels of your organization. There are so many great changemakers who are working in their communities to fill a need. Some new organizations may need information about how and where to get started. This is where I come in and share my knowledge that I have gathered over the last 15+ years of working for nonprofits.
One of the questions I see that is asked the most in the nonprofit groups and forums are "how do I get started?" You have a great idea for a nonprofit and here's what to do next.
Learn what the 501(c)(3) status means.
Ask yourself, does my organization meet the requirements of the tax-exempt status? According to the IRS website, "To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual" (Exemption Requirements - 501(c)(3) Organizations | Internal Revenue Service, 2022).
Visit the IRS page, "Application for Recognition of Exemption" (Internal Revenue Service, 2022).
This page contains a wealth of knowledge. Read it, take notes, and then read it again. This page gives you the direct link to the Form 1023-series and the payment portal for the application.
Review informational IRS videos about applying for exemption (Internal Revenue Service, 2022).
Take some time to watch these videos that explain in detail the information you need to file and overviews of filling out the different forms.
If you have questions, review the frequently asked questions page (Internal Revenue Service, 2022).
We've all search the FAQs on a website at some point. If you have a question, most likely someone else had the same question and you may be able to find the answer easily on this page.
Use your network and future board of directors to find someone willing to donate their time to work on the filing paperwork.
All nonprofits need a board of directors, so use them to your advantage. If you are unable to fill out the paperwork, ask them if they have any recommendations. Most likely at least one of them will have worked with another nonprofit at some point or perhaps know someone who could review it pro bono.
Be cautious of companies or people that will fill out the paperwork out on your behalf.
So many people want to make a quick dollar advertising services they may not fully be able to provide. Do you homework, and as a last resort, ask other reputable nonprofits if they have someone they would recommend.
References
Exemption Requirements - 501(c)(3) Organizations | Internal Revenue Service. (2022, February 17). IRS. Retrieved January 17, 2023, from https://www.irs.gov/charities-non-profits/charitable-organizations/exemption-requirements-501c3- organizations
Internal Revenue Service. (2022, February 17). Application for Recognition of Exemption | Internal Revenue Service. IRS. Retrieved January 17, 2023, from https://www.irs.gov/charities-non-profits/application-for-recognition-of-exemption
Internal Revenue Service. (2022, April 1). Starting Out | Stay Exempt. Stay Exempt. Retrieved January 17, 2023, from https://www.stayexempt.irs.gov/home/starting-out/starting-out
Internal Revenue Service. (2022, July 15). Exempt Organization Public Disclosure and Availability Requirements | Internal Revenue Service. IRS. Retrieved January 17, 2023, from https://www.irs.gov/charities-non-profits/exempt-organization-public-disclosure-and-availability-requirements
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