TRUiC explains how to start a non-profit in the U.S.

Starting a non-profit in the U.S

As we all know, a healthy civil society is not dependent on the state. In the United States, civil society organizations play a significant role in protecting the average person’s rights and interests, dignity, and progress. Starting a non-profit can also be challenging; to avoid such challenges, here’s a process to do it.

Step 1: Pick a Unique Name for your Nonprofit

The first step might be tricky for many. Firstly, the name must be unique. Secondly, it consists of three parts: the legal form, reflecting the nature of your activity, the name itself, and it should be easily searchable for the potential members and donors.

It should define the nature of your organization as a result of your goals and the composition of the future Charter. More importantly, check the availability for your business name as a web domain for the next business site.

Step 2: Get Yourself a Registered Agent & Appoint a Board of Directors

Your next step is to choose a registered agent and select your board of directors. You are required to nominate the name of your registered agent for your non-profit.

Want to know about the registered agent?

Registration agent is a local licensed company that professionally provides registration and administration services for international commercial companies (as well as trusts, funds, partnerships) directly in offshore jurisdictions.

Why Appoint The Board Of Directors?

To draft your bylaws, you need to get guidance from your Board of Directors. It is the operating rule for your non-profit that your organization must have At least three directors not related to each other.

Step 3: Adopt The Conflicts Of Interest Policy & Bylaws

If you want to be eligible for 501c3 status, your non-profit must adopt the two necessary policies.

  • Conflict of interest
  • Bylaws

What Is A Conflict Of Interest?

Conflict of interest is defined as a situation in which a personal interest can affect the decision-making process and, thus, harm the interests of society or the company that is the employee’s employer. For the betterment of non-profit, we need to verify the decision made by the board of directors through conflict of interest.

What Is Bylaw?

Bylaw is a set of rules and regulations establishing the order of activity, the execution of something. These are defined for the non-profit.

Step 4: File Your Incorporation Paperwork

The next important step is to have to file formal paperwork or articles of incorporation with your state. It would require a small filing fee, which will be submitted to your state.

What is the article of incorporation? It’s a set of formal documents filed with a government body to document a corporation’s creation legally.

Requirements for Article of Incorporation

  1. State the name of the corporation
  2. Provide the name & address of the registered agent
  3. State that what type of corporate structure is yours
  4. Provide the names & addresses of the initial BOD (Board of directors).
  5. State the number & nature of shares
  6. Provide the name, signature, & address of the incorporator.

Step 5: Get an EIN & Apply for 501c3 status

The Employer Identification Number ( EIN ) or Federal Tax Identification Number is a unique number assigned by the IRS for any organization’s identification. Typically, an enterprise needs an EIN. It is a free service provided by the Internal Revenue Service, and you can get it immediately.

All applications for the assignment of an EIN must include the

  •         Name & surname of the chief official,
  •         A general partner (who provided the funds to the person, owner or trustee)
  •         Social Security Number
  •     Individual Taxpayer Identification Number

After completing all the steps, you are eligible to apply for 501c3 status by filling online form-1023. Please visit this site for more useful information regarding starting a non profit in the U.S

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