To create an official Nonprofit, simply read more and follow the steps below!
1. Determine the name of the organization. Choose 3 different ones just in case. Call the state of Texas(512.463.5555) to check if it’s already existing organization with that name.
2. Set up the Articles of Incorporation. See the Secretary of State website for a form to know what to complete. Make 2 copies of this form (it’s not long, and requires the founder to list 3-4 board members) and send it to:
The Secretary of State
Statuary Filings Division
PO Box 13697
Austin, TX 78711-3697
Ask for a stamped copy to be sent back to you.
Send a check or money order for 25$ (processing fee). Make it out to the Secretary of State.
3.Go to www.irs.gov and register for an Employer ID #. It takes about ten minutes.
4. Create ByLaws/have first meeting. * You need a president, V.P., Treasurer and Secretary to do this. You can have more board members if you like, however. Just limit how many family members you have on board. The more you have, the more IRS will frown upon it (I listed 1 only).
The mission statement should be no longer than 1-2 sentences.
(I basically found one online and then customized it).
Things to know:
-You can re-reimburse for mileage.
-Decide how often you want to have meetings (most are quarterly).
-A legal meeting must consist of 3 members at least.
-Secretary should always take notes; these are very important.
-Volunteer hours should be recorded.
-The Secretary MUST date and sign the last page of Bylaws.
5. Create a bank account for the organization. 2 people must be on the account from the board.
6. Have each member sign a Conflict of Interest Policy form (I found one online).
7. Form 1023 !!! (*Sarcasm, sarcasm*)
You can’t do this until you have that approved from back from the Secretary of State; this makes the organization officially incorporated.
This form is found on the IRS website.
This has A LOT of questions, and I have somewhat of a guide that helped me to fill it out.
After filling it out, then there are many attachments necessary to complete the form.
8. After approximately 6 months, the IRS should approve this, and then the org is granted tax exempt status.
Then the organization can officially apply for GRANTS, which will provide y’all with the necessary funds to do whatever you would like to do! Of course, they should be fund raising already.
You can find more help about all of this information, and can get advice, at the Small Business Development Center in Dallas- and it’s absolutely FREE!!!
Hope this helps!!!