Establishing a nonprofit provides multiple benefits, which include the ability to request funds from individuals who prefer their donations to be tax-exempt, apply for grants and preventing from having to spend important donations on corporate taxes. However, there are some elements of starting a non profit that can be disadvantageous as well. Nonprofits are required maintain their tax-exempt status on a continual basis by being subjected to financial scrutiny by the IRS, funneling profits back into the organization, conducting board meetings and maintaining detailed financial records.
501(c)(3): Best for Charitable Nonprofits
To begin the process of establishing a nonprofit, start by conducting your research to make sure that you will match your goals when you start your nonprofit. The next step is to work to establish a foundation that will help you allure donors and be ready to file the required work to create your tax-exempt status. After establishing a foundation, you must file your articles of incorporation and the paperwork to be acknowledged as a tax-exempt organization. Finally, take the necessary steps each year to maintain your tax-exempt status.
Below we have listed the five basic steps you will be required to follow in order to start a nonprofit. It is recommended that you contact an experienced nonprofit startup consultant to ensure that you have all your ducks in a row as you proceed.
- Research Feasibility and Requirements
- Establish a Strong Foundation
- File Articles of Incorporation
- File for Tax-exempt Status
- Maintain Your Tax-exempt Status
The nonprofit formation process can be a very daunting process, requiring a great deal of time, effort and even professional expertise. If you would like assistance in setting up your Non-Profit organization. Contact us today at (702) 758-4691 to schedule a no-cost initial consultation. You can click the following link to view our 5-star Google Reviews.