Are you interested in setting up a non-profit? If so are you…

  • Contemplating forming a non=profit organization or a not for profit foundation?
  • Considering qualifying as a 501(c)3 charity? 501 (c)4? 501(c)5? 501(c)6? 501(c)7? Other 501(c)?
  • Not sure about the requirements?

Non Profit

Let’s explore a few steps you need to take and a few resources that you may find useful. Depending on the exact nature of your non-profit and the state, in which it is formed, some things may or may not apply to you. This post primarily addresses California entities, however, you can research the corresponding agency in your state. For example, every state has a Secretary of State Business Portal. That might be your first stop.

A few documents you can obtain and even prepare on your own, and others, you may want to consider hiring a lawyer to help with. Regardless of whether you do it yourself or seek guidance, please know that legal documents should be prepared VERY carefully. They are not always as simple as they appear.

One thing you should know, if you are forming a not-for-profit in California, there are rules and regulations from four (4) governmental agencies, which you MUST comply with, as well as the operational business entity requirements. The government agencies are: California Franchise Tax BoardAttorney GeneralSecretary of State, and the Internal Revenue Service.

Here are a few questions to ask yourself, regarding your non profit:

  • What is the purpose of your non-profit?
  • What type of business entity will you have? Pure non-profit? Charity? Trade Association? Advocacy group? If in California, will it be a low-profit limited liability company (L3C)? or a hybrid social enterprise (e.g., Benefit Corporation, Flexible Purpose)
  • Regardless of the type of entity, you will need corporate documents. The following is a short list of things you will need:
    • Articles of incorporation or association
    • Bylaws or Operating Agreement if it is an LLC or L3C
    • If a corporation, Action of Sole Incorporator
    • Board of Directors

Until next time, I’m Attorney Francine Ward helping you protect what’s yours.

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