Incorporating Nonprofit Organizations

Background

The Company Corporation has been a provider of online incorporation services for over 15 years.

Our organization has helped over 750,000 business owners get started nationwide, including many Nonprofits.

Our Parent company (Corporation Service Company) has been in business for 110 years.

Who this Presentation is for:

People who are serious about starting a nonprofit or foundation and truly want to serve more people and have a greater impact on the world.

People who are serious about starting a nonprofit or foundation and truly want to serve more people and have a greater impact on the world.

Who this Presentation is NOT for

People who are serious about starting a nonprofit or foundation and truly want to serve more people and have a greater impact on the world.

People who are ONLY interested in having a for profit business.

People without charitable intent or a special message to share.

People who intend to defraud the government or avoid paying taxes.

Common Trends Over Time

1. Despite the difficulty, most people will try to do this on their own.

2. The IRS caseload has increased by 400%.

3. There is a lack of clear, step by step instructions, including what not to do.

This Leads People to:

Become Frustrated

Overwhelmed

Give-up!

Common Questions:

How do I get started?

How do I get UNSTUCK?

What is the application PROCESS?

What is the difference between a NONPROFIT & FOUNDATION?

What are the BENEFITS to starting a nonprofit or foundation?

Types of Nonprofit Organizations

PrivateFoundation

Private Operating

Foundation

Publicly Supporte

dCharity501 c 3

501c3 Definition

Charitable, religious, educational, scientific,

literary, testing for public safety, fosters amateur

sports competition, prevents cruelty to children or animals.

Other Categories*

501 c 4, 6, 7

Associations, Business Leagues, Social Benefit Companies, Recreational

Clubs

*Tax Exempt - Donations not

deductible

Benefits of 501(c)3 Nonprofit Status

Tax Exempt

Donations are deductible

Access to funding

Media exposure

Legitimacy

Getting Started

Think in terms of “Milestones”.

What you need to get there

3 Specific “Milestones”

Structure IRS Application IRS Response

7 Secrets to Starting a Nonprofit

1. Mission & Purpose2. People3. Corporate Structure4. IRS Application /

Schedules5. Narratives & Explanations6. Financial Data7. IRS Response Letter

Start with your MISSION

Your Organization’s Purpose and Reason for Being.Example:

“To connect people through lending for the sake of alleviating poverty”

The 3 “Super Hero's”

FOCUS – the purpose of organization?

AUDIENCE – who are you speaking to?

CONNECTION – how is it done?

“To connect people through lending for the sake of alleviating poverty”

Rally Your PEOPLE

Identify Your Organization’s:

Officers

Directors

What is your Corporate Structure?

Corporation / LLC / Hybrid?

Which State?

Articles

Bylaws

Required Language

IRS Application Process

65,000+ Applications Annually

31 Pages, 38 pages of instructions

All 501c3 orgs. use the same form

2012 Tax Advisory Committee

10% of Applications – No determination

40% of applications take 6+ months

25% are professionally prepared

Top 10 Reasons for Delays

1. Incorrect or no user fee

2. Improper Corporate documents or amendments

3. Bylaws not included with application

4. Failure of Officer to sign

5. Failure to complete all required pages

Top 10 Reasons for Delays

6. Failure to complete required schedules

7. Narratives do not demonstrate exempt purposes

8. Failure to include required information for officers/directors

9. Failure to include month of annual accounting period

10. Incomplete financial data

5 Keys to a SUCCESSFUL Application

Required Language in Articles of Incorporation

IRS Response Letters / Questions

Complete the correct schedule

Detailed Program Descriptions and Narratives

Realistic Financials

IRS Required Language

Statement of Purpose

Dissolution Clause

Conflict of Interest Statement

Required Schedules

A – Church

B – Schools

C – Medical Research

E – Outside “27” Month Application Window

F – Homes for Elderly, Disabled and Low-Income

H – Organizations providing Scholarships, Educational Loans or Grants

Programs and Narratives

Describe the programs and activities that your

organization will do to further the exempt

purpose.

REALISTIC FINANCIALS

3 or 4 Year Projections

Gifts, grants and contributions

Income from sale of merchandise or services

Organization’s overhead Amount of gifts, grants,

services or assistance paid out

IRS Response Letters & Questions

The IRS will respond to your application with a series of questions.

You will have 14 days to 21 days to respond.

Positive Letter of Determination

2 Ways to LAUNCH your ORGANIZATION

1. Do it yourself.

2. Have us do it for you.

START TODAY!

Contact Us

Call the Company Corporations at:

(800) 818 6082

Visit us online at:

www.incorporate.com/nonprofit

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