How to Setup a Nonprofit Organization-for Nonprofits

Did you know we have a 100% Success Ratio in Helping Our Clients Form their Nonprofit Organizations?!

It's true!

Here's a great question we're asked all the time:

We're a Nonprofit Corporation - does that mean we're a 501(c)(3) and Tax-exempt?

The short answer: NO! Not even close.

Unfortunately, a lot of people contact us saying they did their own nonprofit incorporation, and now they're ready to apply for grant funding. The truth is all they are is a nonprofit corporation. They are NOT tax-exempt. (And that begs the question: did they incorporate properly? Did they include all the IRS provisions? In most cases they have not - but that's a subject for my next article!)

When one incorporates as a nonprofit organization, that is done through your state. The corporation is now a legal entity, and the articles act as your guideline for running the nonprofit business. Obtaining nonprofit corporate status with your state does not automatically carry over to the federal government, however, and the Feds are the only ones who can approve you for that much sought-after 501(c)(3) status.

"Nonprofit" is really a misnomer, however. A 501(c)(3), while it is in most cases a nonprofit corporation, should really be referred to as a "tax-exempt" corporation. Meaning as long as the funds you raise are done so with your stated purposes in mind and used for those purposes, those funds will not be taxed.

It also means that contrary to popular belief, a "nonprofit" organization CAN make a profit. It's what you DO with that profit that makes the difference!

So pretty much you must first incorporate as a nonprofit corporate with your state. THEN you must file an application with the IRS, requesting tax-exempt or 501(c)(3) status.

Once you've gotten the approval of both your state and the IRS - you may then call yourself a 501(c)(3) nonprofit corporation, and obtain grant funding.

And while most states will automatically recognize your federal tax-exempt status - most will still require you register with them as well, so be sure to check with your state to see what their requirements are for your situation!

For additional information, call Travis Belcher @ 865.249.6311, and see if we can help you, as we've helped thousands of others. Even Grantium and its Grants Management Software recommend the professionals at Non-Profit Services.

The Innovation Fund

If you heard the speech by President Obama today, then you'll know the new administration is working hard to change the climate for the nonprofit sector, reduce troops in Iraq, and use taxpayer dollars for supplanting volunteer efforts. Through the Innovation Fund, President Obama and his team is determined to find the "hidden gems" - that is those nonprofit organizations that have a proven track record in providing proven solutions to our nation's issues. He wants to obtain strategic advice from grassroots organizations; learn how to scale-up government efforts; and partner in providing real-time solutions for the needy in OUR country.

To this end, the new administration will provide resources to help those special nonprofits chosen to reach their full potential and will in fact network with the nonprofit sector to achieve their goals.

If you are interested in forming a nonprofit organization, serving your country and becoming one of those hidden gems, give us a call - we can help you get your organization started! 865.249.6311

What is a Nonprofit Organization?

The two most common questions when starting up a nonprofit organization are: "What IS a nonprofit organization?" and "Should I really develop a nonprofit organization?" Nonprofit Organization Services is here to help you with your questions.

According to Wikipedia, the free online encyclopedia, "A non-profit organization (abbreviated "NPO", or "non-profit" or "not-for-profit") is an organization whose primary objective is to support an issue or matter of private interest or public concern for non-commercial purposes, without concern for monetary profit. A nonprofit organization may be involved in a wide range of areas relating to the arts, social issues, charities, early childhood education, healthcare, politics, religion, research, sports or some other endeavor."

The Ralph & Virginia Mullin Foundation is making small grants to unincorporated entities to get incorporated and to obtain their 501(c)(3) status. The condition is, if an organization receives one of these grants, it MUST use the money to pay those related costs." CLICK HERE: Ralph & Virginia Mullin Foundation

What NonProfit Organization Services.Org will do for You

Are you serious about forming a tax-exempt, nonprofit corporate organization? If so, and if you're ready to get started, then we can help you:

Determine if nonprofit status is right for you
Setup your non-profit organization
Fill out all the federal paperwork & tax-exempt request forms [the 501(c)(3) and any Schedules]
Fill out all of the state tax-exempt request forms, if required
Develop your nonprofit incorporation
Create your nonprofit by-laws Setup your non-profit organization

We Provide the Services You Need

Many other companies offering services similar to those offered by NonProfit Organization Services.Org begin their fees at $1,000.00. Unfortunately, all they end up doing for that price are the Articles of Incorporation and Organization By-Laws. The problem for you is that you cannot claim to be a nonprofit organization and get grant funding with just a nonprofit incorporation status!

When starting up your nonprofit organization, you will need to complete numerous forms and paperwork. For example, in order to obtain your nonprofit, federal 501(c)(3) tax-exempt status, one must fill out a 32-page application and send it to the IRS and "request" approval. If you're at all familiar with the IRS 1040 form, this is similar to what their tax-exempt request form looks like! Since there are so many forms to fill out, most people are often confused and unsure where to start. Fortunately, NonProfit Organization Services.Org is here to help.

Instead of charging you for each and every single item or form you will need completed, at NonProfit Organization Services.Org, we do it all for you - and for one flat fee! Give us a call and we'll take care of all your nonprofit setup needs. For one low rate, we'll help get you started and all for absolutely no hidden fees or charges!

No two states are alike, and different types of organizations require different schedules, or no schedules at all. To find out what your fees will be or for more information, please call Travis Belcher, and let NonProfit Organization Services.Org take care of your organization!

Call: 865.249.6311 for additional information today.

We offer the following protection for your online security

Grant Writers and Nonprofit Specialists @ 865.694.3900
Knoxville, TN 37922

Last Updated on June 12, 2011