6 Steps to Start a 501c3 Nonprofit
Starting a 501c3 nonprofit organization is a powerful way to make a lasting impact. Whether you’re honoring a loved one’s legacy or addressing a community need, these steps will guide you through the process of launching your nonprofit organization.
1. Define Your Mission (Your Purpose)
Begin by clearly articulating the purpose of your nonprofit. This will transform into your mission statement. Your mission statement should convey what your organization aims to achieve, who it serves, and how it plans to make a difference. This foundational step will guide all future decisions and strategies. This statement guides every decision, program, and partnership you make.
2. Assemble a Board of Directors
Most states require at least three board members to establish a nonprofit. Choose individuals who are passionate about your cause and bring diverse skills and perspectives. Your board will play a crucial role in governance, strategic planning, and fundraising efforts.
3. Draft Bylaws
Develop bylaws that outline how your organization will operate, including procedures for board meetings, elections, and conflict resolution. Establishing clear governance policies ensures transparency and accountability within your nonprofit that will run smoothly.
4. Secure a Professional Mailing Address
Before filing your incorporation documents, it’s important to obtain a mailing address for your nonprofit. This address will appear on public records and may be listed in multiple places online.
Avoid using your personal home address as it will be publicly accessible.
Consider using a commercial mail receiving service (CMRA) that offers a street address, UPS Store, or similar.
Some coworking spaces or virtual office providers also offer mail services that can be used as your nonprofit’s official address.
A business may donate space within their office allowing you to use the location’s address.
A dedicated business address protects your privacy, enhances professionalism, and keeps your personal and organizational information separate.
5. Incorporate Your Organization
File Articles of Incorporation with your State. In most States this is completed with the Secretary of State office; but there are States where this is filed in a different State Agency. Filing Articles of Incorporation will legally establish your nonprofit. This document typically includes your organization's name, purpose (mission), registered agent, and information about your board of directors. Incorporation provides legal protection and is a prerequisite for obtaining tax-exempt status. Members in the Nonprofit Coaching Club receive assistance with locating what office to file the Articles of Incorporation as well as which item to select as they differ from state to state (i.e. Nonprofit Business, Not-for-profit Organization, Nonstock Business, etc.).
6. Apply for 501c3 Tax-Exempt Status
Before submitting the IRS Form 1023 you will need an EIN (employer identification number). Apply for an EIN through the IRS website. This unique identifier is necessary for tax filings, opening bank accounts, and hiring employees. The application process is straightforward, FREE and can be completed online.
Submit IRS Form 1023 or the streamlined Form 1023-EZ to apply for federal tax-exempt status. Eligibility for Form 1023-EZ includes:
Projected annual gross receipts of $50,000 or less for the next three years
Total assets of $250,000 or less
Not being a church, hospital, or school
The application requires detailed information about your organization's structure, finances, and planned activities. Upon approval, your nonprofit will be exempt from federal income tax, and donors can make tax-deductible contributions.
Launching your nonprofit is just the beginning. To maintain momentum and ensure long-term success:
Stay compliant by submitting required annual reports and filings.
Keep accurate records for finances, board meetings, and fundraising activities.
Start small, but take consistent action—lasting impact grows from steady progress.
Need expert guidance and access to support experts?
Join the Nonprofit Coaching Club for step-by-step resources and strategic coaching. Your membership includes:
3 self-guided courses including one which focuses on giving you step-by-step video instructions on each of the 6 steps above as well as Bylaws Template.
Growing Resource Library with an abundance of videos, templates, guides and samples. We add new resources often. If there is something a member needs we will make it for you.
Access to experts via email and video sessions to give you the 1:1 support you need.
We look forward to helping you start, fund and operate a 501c3 nonprofit with ease.
