Forming a non-profit is a great way to support a worthwhile cause. As a non-profit, you are eligible to receive private and public grants and apply for tax-exempt status from the IRS. Plus, you’ll be able to solicit tax-deductible donations, which are critical to your fundraising efforts. Non-profit recognition also reassures potential donors that you are a legitimate organization.
Huang Law LLC can help you quickly form your non-profit corporation and prepare your 501c(3) application for tax exemption.
Two-Stage Process
In general, there are two stages to consider when creating a nonprofit organization in Delaware: first, drafting and filing the legal documents required to create a nonprofit organization, and second, applying to the IRS for non-profit status, if desired.
Stage 1: Forming a Delaware Nonprofit Organization
Delaware is the great place to start your non-profit organization. Learn more about the advantages to form Delaware Corporation.
Certificate of Incorporation
To create a Delaware nonprofit organization, you need to form a Delaware corporation by filing Certificate of Incorporation with the State of Delaware. Please note that if you intend to seek 501(c)(3) status with the IRS, there is certain language that you need to use in your Certificate of Incorporation to comply with IRS requirements. The exact required language will depend on the type of organization and its mission.
Bylaws
A nonprofit organization should also have bylaws. Bylaws are your organization’s operating manual. They define the size of the board and how it will function; roles and duties of directors and officers; rules and procedures for holding meetings, electing directors, and appointing officers; and many other essential corporation matters. Bylaws are not public documents, but making them readily available increases your accountability and transparency and encourage your board to pay closer attention to them.
Stage 2: Applying for 501(c)(3) Status
Once you have formed a Delaware nonprofit organization, the next step is to apply for non-profit status with IRS. Obtaining 501(c)(3) status provides a number of benefits including being able to receive donations from other 501(c)(3) organizations and individual donors being able to receive a charitable tax deduction for their donation to your organization.
The application for seeking 501(c)(3) status is IRS form 1023. Most people who look at IRS form 1023 are overwhelmed by the daunting amount of information required. Many people started on their own and later sought the help of a Delaware nonprofit attorney because they couldn’t figure out the application or the IRS rejected their application due to problems in the application. If you want to apply for 501(c)(3) status on your own, the IRS provides some guidance: 501(c)(3) application process.
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