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Nonprofit Resources : Starting a 501(c)(3)

This guide provides an overview of nonprofit resources offered at CLP that will help aid in starting a 501(c)(3), grant searching and proposal writing

What is a 501(c)(3)?

 

Most foundation grants require funds to go to an organization that has 501(c)(3) status. That's a legal designation that allows an organization to operate on a charitable, not-for-profit basis. The IRS provides many guidelines on its website and lists the allowed tax exemptions as religious, charitable, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and preventing cruelty to children or animals. Setting up your organization as a legal nonprofit is one step but you also need to make sure you're set up to succeed as an organization. 

More helpful resources for new 501(c)(3)s

Gale Legal Forms The Pennsylvania Legal Forms Library, accessible with your library card, has templates for articles of incorporation, bylaws, nondisclosure agreements, and other legal documents.

Board Source Resources and tools on a broad range of board leadership topics, including board management, intentional recruitment, and board structure and roles.

Yes, You Can Start a Nonprofit Webinar SCORE provides free business mentoring, workshops, and guidance. This webinar focuses on the basics of setting up a nonprofit organization.

Nonprofit Startup Assessment - Helps people who are considering starting a nonprofit or have just started one asses where they are in the process. This assessment includes questions about background knowledge, capital and work experience. Once the assessment is done you will receive customized resources based on your level of knowledge 

Recommended Readings

Book cover for

The Nonprofit Career Guide

ISBN: 9780940069596 

Book cover of

Compassionate Careers

ISBN: 9781601633590 

Book cover with the title

Make Your Mark

ISBN: 9781683507550 

Book cover titled

Be Bold

ISBN: 9780979011603 

Nonprofit Essentials

To plan a nonprofit you need:

Mission: Communicates the nonprofit's purpose, what groups it serves, and how it plans to do so 
Vision: Establishes what the world will look like when you meet your mission
Values: A set of guiding principles that shape the behavior and decision-making of everyone on a nonprofit's team 
Your Team: This includes your board, your staff, volunteers and essential community members
The Need: Identify the need of the community that you'll be serving and document it
Programs and Services: How can your programs and services help address the need you previously identified?
Finance: A numerical representation for how you're going to get everything done you say you're going to get done and how much it's going to cost to get it done
Marketing and Outreach: How are you going to effectively communicate what your organization does and how are you going to let community members know what your organization does 

  1. Establish a Board of Directors
  2. Develop Bylaws and Board Policies
  3. File articles of Incorporation w/ Secretary of State's Office
  4. Obtain an Employer Identification Number (EIN): www.irs.gov/FormSS-4
  5. File for federal tax exemption - 501(c)(3) status
  • Volunteer 
  • Work at an organization with a similar mission 
  • Serve on a nonprofit board
  • Pursue fiscal sponsorship

IRS requirements for 501(c)(3) tax exempt status

The Internal Revenue Service requires all for profit and nonprofit organizations to have an Employer Identification Number for tax filing purposes. As a 501(c)(3) organization, you will also need to complete the paperwork for becoming a legally tax exempt organization. 

IRS Publication 557 (Rev January 2023) Tax-Exempt Status for your Organization is the complete manual of rules and regulations as set by the IRS. 

IRS Exemption Requirements for 501(c)(3) Organizations

IRS Employer Identification Number (EIN) information

Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code ($275 user fee)

Information about Form 990, a required annual tax filing for 501(c)(3) organizations

For more guidance on federally required paperwork and filings, this slideshow presentation Applying for 501(c)(3) Status walks you through the process. 

Pennsylvania State Requirements for Forming a Nonprofit Corporation

The process for starting a nonprofit corporation is very similar to starting a for-profit business. The initial filing will be the Articles of Incorporation for a Nonprofit Corporation. 

Pennsylvania Department of State Nonprofit Corporations

Pennsylvania Department of State Online Business Forms portal: Look for Articles of Incorporation- Nonprofit ($125 filing fee)