Everything You Need to Know About Starting A Nonprofit
Start a Nonprofit
The Ultimate Checklist for Nonprofit Startups
How to Start a Charity or Foundation: Step by Step
Have a mission in mind but you’re not sure how to create a 501c3? We’ve created a free nonprofit startup checklist for anyone looking to start making a difference ASAP. At Charitable Allies, our nonprofit attorneys have helped over 600 organizations across the country secure their 501c3 status. If you’d like our legal team to handle the paperwork, we offer packages starting at $1,550 that include everything you need to launch your nonprofit. Not quite ready to take the plunge? Read our nonprofit startup checklist below for a step-by-step guide on what you need to prepare! Or find the downloadable PDF version below.
What kind of organization is your nonprofit startup?
Public Charity
The majority of 501c3 organizations fall into this category including humane societies, social services, youth programs, and more! If you’re seeking legal help to launch your charity, you’ve come to the right place!
Church or Place of Worship
This category includes churches, temples, mosques and other places of worship that have religious history, regular congregations, and a recognized creed. These are different than ministries.
Private Foundation
These organizations are typically funded by a single or a small pool of individuals and include corporate foundations, family foundations, and more. Keep in mind, some grant-making organizations are public charities and some are private foundations. If you’re not sure which classification is right for your nonprofit startup, reach out to our team for assistance.
Social Welfare Groups
501c4 social welfare organizations are nonprofits that are more politically active through activities like lobbying for certain candidates or public policies. Donations to 501c4s are not tax deductible.
Business Leagues, Social Clubs, and Other
Organizations in this category are tax-exempt, but are not 501c3 or 501c4 organizations. They range from 501c5 (labor and agriculture organizations) to 501c13 cemetery organizations. We can still assist most tax-exempt organizations in their setup, regardless of whether they are 501c3 nonprofit organizations or not.
Ready to start your nonprofit?
Schedule a consultation with our legal team today! We’ll walk you through the process, timeline, and cost, ensuring you’re covering everything on your nonprofit startup checklist.
Get Started
1.
Who (or what) will you serve?
A charitable class is a group of people (or another defined group, i.e. endangered animals or a historical site) that the IRS considers eligible to receive services and is large enough that aiding them provides benefit for the larger community. You’ll need to serve a charitable class that is not too specific (like serving one particular family), but not so broad that it can’t be easily defined.
2.
How will you help?
You need to have a way of providing help to your target group. What type of services will you provide and how will you provide them? For most nonprofit startups, you should focus on providing 1 or 2 programs to start. Don’t worry, if you have more than one program idea in mind, your nonprofit organization can always provide more charitable services as you grow. As long as you’re still serving your charitable mission, you’re welcome to add more ways to serve.
3.
Do you have a board?
All nonprofits must have a board. No one can go it alone! You’ll need at least three board members including yourself, most of whom are not related to one another by blood or marriage. If you’re curious about what kind of people you might want on your first board, we have an article covering that topic here.
4.
How much will it cost to provide your programs?
It's important to understand what resources you'll need to carry out your programs. To start a nonprofit, plan for several startup costs including the IRS fee to file for tax exempt status, which ranges from $275 to $600. If you'd like our help starting a nonprofit, our startup packages start at $1550. You’ll also need to think about any costs of running your program like supplies, hiring staff, or renting or buying space.
5.
How will your charitable program be funded?
Developing and maintaining a source of income is a critical component of starting a nonprofit. The old adage is no money, no mission. Most nonprofits are funded in a variety of ways, by a variety of people and organizations. Will you collect program service revenue? Will you apply for grants or hold fundraising events? Will you pursue government funding? Our legal team will guide you through the nonprofit startup process so you're equipped with a solid plan.
6.
Can you maintain and upkeep an organization?
Starting a nonprofit is more than just learning how to create a 501c3 initially. Filing, reporting, and record-keeping are essential administrative tasks that maintain the nonprofit. For example, you'll need to file a 990 with the IRS each year containing financial details about your nonprofit in order to keep your tax exempt status active. Many states also require you to register to fundraise and keep that status active with a filing each year. Keeping a calendar with all the due dates and tasks needed can be helpful for people tracking basic nonprofit startup compliance.
Nonprofit Startup Checklist
How to Start a Charity: What to Prepare
Need help with your nonprofit startup?
Schedule a consultation with our legal team, we can help streamline the process! When we talk with founders about their charity startup, we guide them through the costs, timeline and steps.
Want a downloadable version?
Submit your email address below and we’ll send you a PDF version of the nonprofit startup checklist right to your inbox.
Nonprofit Startup Resources
Frequently Asked Questions
The free resources on our website can help you learn how to create a 501c3 if you’re looking to DIY. If you’d like us to complete the initial legal paperwork for you, we’re happy to do that. We can start a nonprofit in any state from start to finish. Comprehensive packages start at $1550, with no-interest payment plans available. If you’d like our help, request a consultation to learn more.
No matter if you are starting a nonprofit organization yourself or hire someone to help, starting a nonprofit isn’t free. There are two key costs to keep in mind if you start the nonprofit yourself:
- Each state charges a filing fee to file Articles of Incorporation. Usually this ranges between $25 to $100.
- The IRS charges a filing fee for your application for tax exempt status. Depending on which form is right for your organization, the fee could be as little as $275 or as much as $600.
If you’d like our help, we’re happy to complete the paperwork for you in any state in the US. Our comprehensive startup packages start at $1550, including the filing fees mentioned above.
Our legal team can help with the entire startup process. We can help with incorporating in any state, creating starting documents like bylaws, and filing for tax exempt status. We are also happy to help with any additional legal needs that are more specific to your organization, like safety or volunteer policies. We also publish free educational content every month on our blog, including an entire section full of information about starting a nonprofit. If you’re interested in having our help with starting a charitable organization, please reach out.