Forming a non-profit organization in the United States, such as a 501c3 public charity, 501c4 Social Welfare Organization, 501c6 Business League, or 501c7 Recreational Club is a great way for you and your family, friends, and/or colleagues to make a positive impact on your lives and the world. In some cases, your organization can provide tax benefits to your donors and members, which enhances your efforts.
Warren Law Group helps establish each of these non-profit types. The most common of these is the 501c3 public charity. If you are interested in starting a U.S. non-profit organization, read on as Warren Law Group shows you how it’s done.
How to Form a 501c3 or other non-profit organization
Learning how to start a charity or other non-profit begins with familiarizing yourself with the seven-step process of opening a U.S. tax exempt organization.
Step 1: Determine your organization’s tax-exempt purpose. As an example, the Internal Revenue Code §501(c)3 grants a tax exemption and deduction for organizations which are formed:
Make sure that you can describe your organization’s purpose simply in 1-2 sentences so that the IRS can understand what you intend to do with Federal tax-exempt status.
Step 2: Form a non-profit corporation in the proper jurisdiction (usually the state in which the organization is located). To do this, you need to have an available name and at least three willing board members who are above the age of 18. This part has two steps:
Step 3: Have the Organizational Meeting. This is the first meeting of the Board of Directors for the organization, in which the following occurs:
Warren Law Group clients have access to an attorney that can preside over and guide the board of directors through their organizational meeting and provide compliance tips as part of our non-profit organization formation package.
Step 4: Prepare and submit the organization’s application for Federal Tax Exemption (Forms 1023, 1023-EZ, or 1024) electronically on www.pay.gov.
Warren Law Group helps you determine the form that’s right for you and makes the entire process seamless. If the IRS requires additional information or has questions, the Warren Law Group communicates with the IRS to work out any issues for no extra charge.
Step 5: Receive your Federal Tax Exemption determination letter from the IRS. Congratulations! This document means that your organization is exempt from Federal income tax. Donors may take an applicable tax deduction. Make sure that you keep a safe electronic copy of this letter as the IRS does not like to issue copies.
Step 6: Prepare and submit your organization’s State tax exemption application. Include a copy of the federal determination letter.
Getting your federal determination letter isn’t enough. All organizations must apply for state tax exempt status as well, which Warren Law Group handles as part of its 501c3 non-profit organization formation package.
Step 7: Register with the State Attorney General’s charities bureau, if applicable.
Warren Law Group prefers to guide its clients through all these steps, setting them up for success with no loose ends to the formation process.
Warren Law Group offers a package of services to handle every step of the non-profit organization formation process for a flat fee of $5,000. This includes all filing fees and other expenses. If your organization has already completed some, but not all, of these steps, the Warren Law Group can customize a package that works for you.
If you’re interested in forming your charitable organization with the Warren Law Group, contact us, and get started making a difference!
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