Starting a 501(c)(3) Nonprofit: Research, Planning, Fundraising, and More
This article is a summary of a YouTube video "How Do You Start a 501(c)(3) Nonprofit?" by Foundation Group
TLDR Starting a 501(c)(3) nonprofit requires research, planning, fundraising, and overcoming technical hurdles, but there are free resources available to help guide you through the process.
Starting a 501(c)(3) nonprofit involves research, planning, fundraising, and overcoming technical hurdles, and there are free resources available to help guide you through the process.
Before starting a nonprofit, it is crucial to identify the problem you want to address, determine how you will address it, and who will help you, as well as create a business plan.
Establishing a nonprofit corporation at the state level is crucial for success and when applying for 501(c)(3) status, as it is the most common and effective entity type for charities.
You need an EIN from the IRS, appoint a board of directors, and set up legally binding bylaws to start a 501(c)(3) nonprofit.
Applying for 501(c)(3) status with the IRS is a complex process that involves filing form 1023 or 1023ez, which thoroughly examines the organization's structure, purposes, programs, and ensures it is formed for charitable purposes without any private benefit.
Starting a 501(c)(3) nonprofit requires verifying your charitable mission and programs with the IRS, and if approved, you will receive a letter of determination confirming your 501(c)(3) status, but it is highly recommended to seek professional assistance due to the complexity of compliance rules at both the state and federal level.
Tax professionals are the best advisors for startup nonprofits because they can provide guidance on tax and compliance concerns, which is crucial for success.
Start a 501(c)(3) nonprofit to make a difference and change lives by getting your plan together and taking action.