10 Steps to Starting a Nonprofit

Starting a nonprofit isn’t just about forms and filings — it’s about bringing your vision to life. Whether you want to serve your community, launch a new program, or change the world in your own way, the process can feel like a maze of IRS rules and state requirements.

Here’s the roadmap every founder needs to take to move from idea to an officially recognized 501(c)(3) organization.

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Step-by-Step Explanation

More detail on what each stage involves.

Get clear on the change you want to make, the work you’ll do daily, and the principles that will guide you.

  • Vision – the big-picture change your nonprofit will create.
  • Mission – the day-to-day activities that bring your vision to life.
  • Values – the guiding principles for how your organization operates.

Pick a name that reflects your mission and make sure it’s legally available.

  • Search your Secretary of State’s business database
  • Confirm the IRS will accept the name when you apply for an EIN
  • Avoid names too similar to existing organizations
  • Pro tip: check domain availability,

Build a governing team and write the rules that guide your nonprofit.

  • The IRS requires 3 board members.
  • Choose people with passion and complementary skills.
  • Bylaws = your nonprofit’s rulebook (meetings, officers, conflicts of interest).
  • At your first meeting: adopt bylaws, elect officers, and approve moving forward.

Your nonprofit needs a federal ID number (like a Social Security number for an organization)

  • Apply online at IRS.gov (free, takes minutes).
  • Requires your legal name, address, and SSN of the applicant.
  • Download and save the confirmation — it’s hard to replace later.
  • Required for banking, taxes, and official documents.

This is the legal step that makes your nonprofit official.

  • Usually filed online; some states still use paper forms.
  • Requirements: incorporator, registered agent, purpose statement, dissolution clause.
  • Filing fees typically range from $30–$100.
  • Some states require you to list initial directors; others don’t.

Protect your nonprofit (and yourself) by keeping finances separate.

  • Most banks require your EIN and Articles of Incorporation.
  • Some may also request bylaws and meeting minutes.
  • Set up dual signers or safeguards for accountability.
  • Establish strong financial procedures early.

Apply for 501(c)(3) status so donations can be tax-deductible.

  • Form 1023-EZ ($275): for small nonprofits (under $50k revenue, $250k assets).
  • Form 1023 ($600): for nonprofits over 50k in revenue or more complex organizations.

Many states require charitable registration before you ask for donations.

  • Required in most states (with fees and forms).
  • Often requires your most recent IRS Form 990, 990-EZ, or 990-N.
  • Some states exempt very small nonprofits; check your state’s rules.
  • Renew annually to stay compliant.

Approval takes time, but you can keep moving forward while you wait.

  • Typical wait time: 2–8 months.
  • Track status by calling the IRS.
  • Approved orgs appear in the IRS tax-exempt database.
  • You can accept donations now — just let donors know status is pending.

Some states require extra filings for income or sales tax exemption.

  • Income tax exemption: prevents paying state corporate tax.
  • Sales tax exemption: lets you avoid sales tax on qualified purchases.
  • File separately with your state’s Department of Revenue.

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Starting a nonprofit doesn’t have to feel overwhelming. The free 10 Steps to Starting a Nonprofit Guide breaks the process into plain English with:

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