 |
| https://www.councilofnonprofits.org/ |
A nonprofit is an organization/corporation that is tax-exempt under 501(c)(3). They provide a public benefit which gives them some exemptions to tax payments.
 |
| Distribution of Nonprofit businesses https://www.councilofnonprofits.org/what-is-a-nonprofit |
1. Pick the name of your corporation/organization
Information about naming, searching existing names, and reserving names can be found at: https://www.sos.ca.gov/business-programs/
a. The name must not be the same or too similar to an existing name
b. The name must not be misleading to the public
c. You can reserve a name for 60 days via a 'name reservation request'
d. The name must not infringe on another person's trademark. You can search trademarks and patents via the US Patent and Trademark Office database.
2. Draft and file articles of incorporation
This step makes your organization legal. Things to be identified:
a. Organization name
b. Purpose(s) of the nonprofit
c. Agent- the person who receives official correspondence and responds to legal matters
d. Limitations on corporate powers
e. Purpose or mission statement. It is wise to leave this statement broad so that the organization can evolve.
This document must be signed by the 'incorporator' (a single person or board of directors if you have them).
 |
| https://www.sos.ca.gov/business-programs/ |
3. Appoint the board of directors
In California, it is recommended to have at least 3 board of directors to increase chances of being established as a nonprofit.
4. Draft bylaws and conflict of interest policies
Bylaws should address:
a. The mission of the nonprofit
b. How directors are elected
c. How the board takes action
d. How board meetings are called and how they are conducted
e. The officers (president/chair, secretary, treasurer, CFO...)
f. Outline of duties and responsibilities and reporting hierarchy
g. Member voting rights and privileges
5. Initial board actions
a. Adopt the bylaws and conflict of interest policies
b. Elect the officers
c. Decide on a fiscal year
d. Establish a bank account
e. Apply for federal and state tax-exempt status
f. Approve compensation
6. Obtain an Employer Identification Number (EIN)
7. File registration form (CT-1) with the California Attorney General's Registry of Charitable Trusts
This is due within 30 days of receiving assets. Bylaws should be included in the initial filing.
8. File the Statement of Information (SI-100) with the Secretary of State
Must be filed within 90 days of incorporation.
9. Apply with the IRS for federal tax-exempt status
Form 1023 must be complete. Detailed instructions: https://www.irs.gov/pub/irs-pdf/i1023.pdf
Things to consider:
a. Organizational structure
b. Specific activities
c. Funding
10. Apply for tax exemption in California with the California Tax Board (FTB).
Resources used:
Comments
Post a Comment