How to Set Up a Nonprofit Group
- 1). Incorporate your nonprofit organization in your state. The method for this may vary depending on your state, but most secretary of state offices are happy to guide you through the process.
- 2). Fill in an "Application for Recognition of Exemption under Section 501(c)(3) of the Internal Revenue Code" or Form 1023 for the IRS.
- 3). Complete an "Application for Recognition of Exemption under Section 501(a)" or Form 1024.
- 4). Register for an Employer Identification Number (EIN), either online or by phone. The IRS requires all nonprofit organizations to do this, regardless of whether they plan on employing anyone.
- 5). Make copies of your "Organizing Documents." This will include Articles of Incorporation and Association, Trust Indenture, and any Constitutional documents.
- 6). Collate your financial data for the last three years, including receipts if possible. Attach a description of the organization's activities and plans.
- 7). Send all of this data to the IRS. It is advisable to keep copies for the organization's records.
