From choosing a name to securing the necessary licenses, a lot of work goes into starting a non-profit organization. And while the task may be daunting, it’s worth it to benefit the lives of so many other people. The guide below offers a general outline of the steps involved, but consult with a reliable financial services team as well to make sure you remain in compliance with all pertinent rules and regulations.

A Guide to Starting a Non-Profit Organization

1. File Articles of Incorporation

After choosing a name, you’ll need to file the articles of incorporation for your business, which should also list the company’s physical and mailing addresses. However, the Secretary of the State’s office may ask you to go back to the drawing board if the name you chose is already in use.

2. File for Tax Exemption

You’ll also need to file a form with the IRS to be tax-exempt. This will either be a 501(c)(3) application or Form 1023-EZ, which is a streamlined document for smaller organizations. Consult with a financial services advisor as, depending on where you live, you may also need to file a state form for tax exemption.

3. Create Bylaws

Bylaws dictate rules for practical matters regarding your non-profit. This usually includes voting procedures, rules regarding meetings, and how officers will be elected. You’ll also want to appoint directors before the first meeting. Accurate record-keeping is a must in this case, and minutes should be taken and filed after every board meeting.

4. Research Licenses & Permits

You may or may not need licenses and permits depending on the nature of the organization. If you are required to be licensed, have the necessary documentation in place before you begin operating. If not, you could be subject to costly fines and penalties.

Non-profit organizations help society be the best it can be. That’s why Wilson, Rea, Beckel & Associates CPA’s LLC gladly supports these organizations by offering reliable advice regarding formation, tax planning, and other accounting matters. This Pagosa Springs, CO, firm offers the benefit of more than 16 years of experience, and as a result, is equipped to offer a wide range of financial services. This includes tax planning, payroll services, bookkeeping, and IRS representation. Schedule a consultation today by calling (970) 731-1040. You can also visit them online for a more detailed listing of their financial services.