Create Nonprofit Organizations
Nonprofit organizations normally are social clubs, trade associations, political or charitable organizations or government groups. One of the most important questions to ask yourself when forming an organization is who will benefit from it. If the public or your community will benefit, a nonprofit is your most favorable option. It's a good idea to join the National Society for Nonprofit Organizations to gain access to a wide variety of resources that may help you operate a successful organization.
Instructions
Creating Nonprofit Organizations
1. Create a mission statement for your nonprofit organization. A good mission statement will clearly state the purpose of your organization. A nonprofit mission statement may be a short paragraph or a three-page document. Ideally, your statement should be no longer than a half page. State who will benefit as a result of the existence of your organization. Indicate the morals and ethics that will govern your nonprofit.
2. Select individuals to serve on your nonprofit's board of directors. They should demonstrate the highest moral standards at all times, be of outstanding character and have some knowledge of business. It helps to select board members with diverse professional backgrounds. Situations may arise that call for talents in a variety of professions. For example, if your organization's board consists of accountants, lawyers and entrepreneurs, your nonprofit may benefit from this in-house expertise.
3. Incorporate your nonprofit organization with your state. This is done by filing articles of incorporation at a government agency, usually your secretary of state's office. The costs to file articles of incorporation for a nonprofit organization vary from state to state. Incorporating your nonprofit prevents board members and other individuals associated with your organization from being held personally liable for debts and lawsuits.
4. Submit forms 1023 and 1024 to the IRS. Completion of these two forms allows your nonprofit to be recognized as an exempt entity. In addition, you must apply for an employer identification number. You may do so by phone or online at IRS.gov. To complete this process, the IRS requires you to submit your articles of incorporation or association. Furthermore, you'll be required to indicate the nature of your activities and the purpose of your organization to the IRS. If you haven't formally organized your nonprofit into a corporation, trust, association or other entity type, you won't be recognized as a nonprofit by the IRS.
5. Create rules or bylaws for your nonprofit. Bylaws are rules that govern the operation of a nonprofit. Your organization's rules may cover topics like voting, place and time of board meetings, and conduct expectations.
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