How Do You Start a 501(c)(3) Nonprofit?
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- Опубліковано 20 лип 2024
- Just like with any BUSINESS, there’s a lot that goes into starting a NONPROFIT…research, planning, fundraising, etc. There are also legal, accounting, and technical hurdles that must be cleared. In this video, we take a look at all that’s involved with starting a 501(c)(3) nonprofit.
📚 ADDITIONAL RESOURCES
•eBook: 10 Things You Need to Know Before Starting a Nonprofit: www.501c3.org/request-success...
•WEBINAR: Successfully Starting a New Nonprofit: • Successfully Starting ...
•VIDEO: Nonprofit Bylaws - The Dos and the Don’ts • Nonprofit Bylaws - The...
🏆 YOUR NEXT STEP:
•Fill out this form for a FREE consultation on how to start a nonprofit: bit.ly/3Tu9nYE
•Register for Fundraising TV: www.501c3.org/fundraising-tv/
•Download the FREE eBook “10 Things You Need to Know Before Starting a Nonprofit” bit.ly/3XhFag0
0:00 Introduction
0:56 10 Things You Need to Know Before Starting a Nonprofit
1:26 Know Your “What” and your “Why”
2:05 The “How” and the “Who” of the “What” and the “Why”
2:56 Step 1a: Establish the Entity at the State Level
3:38 Step 1b: Secure an Employer ID Number (EIN) from the IRS
3:49 Step 2: Choose Your Board of Directors
4:38 Step 3: Draft Your Bylaws
5:04 Step 4: Apply for 501(c)(3) Status with the IRS using Form 1023 or Form 1023-EZ
6:25 Step 5: Receive your Letter of Determination
6:45 Get Professional Help when Starting a 501(c)(3) Nonprofit
7:50 Conclusion
![How to Start a Nonprofit in the USA 501(c)(3) [Step by Step]](http://i.ytimg.com/vi/fDhRl9apsD8/mqdefault.jpg)
If you need help filing for IRS 501(c)(3) status, we’d love to help! You can fill out our contact form at bit.ly/3i6rFxz or give us a call at 888-361-9445.
Excellent video--thanks for putting this together for those of us who need to know what we're up against.
This was an outstanding video!
Great video! Clear, concise and to the point. I’ll definitely be checking out your webinar and your other YT vids. New subbie for sure.
Great to have you on board, Jamilah! We hope the videos are helpful for you.
Trying to get a question answered. Does the IRS require a 501c3 to have a Rented Space or can we use a Club Member's home address or Club Member's business address that offers it to the Club for Free?
Also, is there a requirement that there be Business Hours where a Person must be at the Office a certain number of hours a week?
Sounds like you are adding to our lengthy list of pervasive nonprofit myths! The answer to both questions is, "No!" Using donated space is a great option and saves a lot of money. And there is certainly no requirement for public hours. Hope that helps!
Great video !!! Would you recommend that start-up organizations provide a board questionnaire to potential board members and should my startup have an initial board of advisors or board of directors? Also, do you recommend a board-nominating committee to elect the first round of directors? In my bylaws should I state term limits and expirations compliant with state law for my board of directors?
Great questions. I think the questionnaire situation depends on who you're asking to serve. If you're starting a small charity, and your initial picks for board service are people well known to you, then I think screening questionnaires become less critical. However, if you are recruiting community leaders or others with targeted skillsets, but are more or less unknown to you as the founder, then some tool that allows you to vet for missional fit and alignment makes a lot of sense. The question about advisory board vs. board of directors depends on how people define those things. Nonprofits need a governing body of voting directors, and this is most often going to be referred to as the board of directors. A board of advisors is usually a different group of people who are relied on for advise and strategic input, but do not have governing authority via vote as a director. I've seen some voting boards referred to as an advisory board, but I don't prefer that based on common terminology usage. As for nominating committee, I again think scale determines this. A really small org may have its initial board personally recruited and installed by the founder. In the scenario of a larger scale situation, nominating committees can be helpful. I find committees like that more helpful down the road when nominating new and replacement members than I do at the beginning. Finally, yes, term lengths (2 years, 3 years, etc.) are a good idea, though there is no set standard length unless specifically addressed in state law (not typical). Terms give those who wish to roll off a good opportunity to do so. I'm not a fan of short term LIMITS, however, even though it has theoretical appeal. Way too often good board members can be lost that way. Some states require terms, but almost none require limits on consecutive terms.
I’m starting my nonprofit, I haven’t gotten any donations yet, if I apply with the form 1023 by being a public charity, IS IT A HIGH CHANCE FOR THIS APPLICATION REQUEST FOR THE 501c3 determination BEING DENIED?? Or is it easy to be recognized and approved?
It's not easy to be recognized by any estimation. First, your corporate/governing structure, purpose, and proposed programs must all meet the stringent criteria required to be recognized as a 501c3. Second, Form 1023 is a complex, detailed application with questions that are not easy understood by those who haven't done this before. While it may sound self-serving for us to say this, the 501c3 application process is a terrible DIY project. You need professional assistance to do this the right way. It's important to know that even if a DIYer manages to get approved, they're completely liable for the veracity of the information they provided the IRS, as well as making sure they are complying with the state and federal regulations that apply after they get started. Let us know if you need help. Good luck with it!
@@FoundationGroupWho Would Be A Prodessional? A Tax Accountant? The Same Person Who Does My Taxes?