Creating a Non-Profit Organization

Creating a non-profit organization involves several steps, and the process. Here is a link to more in-depth coverage.
After you have read all the info below as well as the info on the link above, you may want to invest in some books to
take you through the process. Here is a link to Nolo Books. Here’s a general guide that you can follow:

  1. Define Your Mission and Objectives:
    • Clearly outline the purpose of your non-profit organization.
    • Define your goals and the impact you intend to make.
    • Determine if you need to be just a non-profit organization or if you need to be tax exempt organization.
  2. Research and Planning:
    • Conduct thorough research to ensure there’s a need for your organization.
    • Identify potential challenges and develop a plan to address them.
    • Start researching for the name you will choose for your organization.  Select a unique and meaningful name for your non-profit organization. I would suggest coming up with several names that would work because you need to determine if they are already in use or have already been reserved with the Secretary of State. You can reserve a name for 60 days.
    • After you come up with a possible name, do a whois.com search to see if that domain name is available and then add that name to Facebook.com/ to see if it comes up with somebody’s Facebook page. Do the same with Instagram.com/ to make sure that you can get that name as well.
    • In this planning process, you want to make sure that the name you select as the name for your non-profit is available for your domain name (.com or .org or .net) for your website and is also available for your Facebook page and your Instagram page so that you don’t confuse people with mixed names across your marketing.
    • As an example, if the non-profit you want to use is called Building Non-Profit Organizations then your domain would be BuildingNonProfitOrganizations.com or .org and the name you select for Facebook would be Facebook.com/buildingnonprofitorganizations and your Instagram name is Instagram.com/buildingnonprofitorganizations.
    • I made the mistake of not caring about having the Instagram.com/name for one of my companies because I did not use Instagram at that time.  Now, the name that I use for my domain name and my Facebook business page are not the same as the Instagram.com business page name because that Instagram name is in use by one of my competitors.
    • If you discover the name.com you want is available, you should also check out name.org and name.net. You don’t want to end up with name.com only to discover that name.org and name.net go to porn sites which would bother your constituents. Go to the next choice in your possible names. Also, it may be worth the expense of getting all three domains; .com and .org and .net to prevent problems in the future. Also, it is cheaper to buy them for 3 years up front.
  3. Choose a Name:
    • Once you think you have found your name, now you need to check with the California office of the Secretary of State to see if that name is still available.
    • If it is available, you can reserve the name for 60 days. The office of the Secretary of State does charge a small fee to do this.
    • I would use a service such as HostGator to secure my domain name and select the least expensive hosting plan so that you have it locked down. I would also go into my personal Facebook.com account and create a business page with the selected name as discussed above. I would do the same thing with Instagram.com.  It should only take you an hour or so to do this. I would not start building the website, but just secure the names before moving forward.
  4. Draft your Articles of Incorporation:
    • File your Articles of Incorporation with the Secretary of State
    • When you file, they will give you an account number. Write down and save the account number that they give you because the DOJ will want it.
  5. Draft Bylaws & Conflict of Interest Policy:
    • You can find bylaws templates for similar organizations to download from the internet and then change them to fit your organization.
    • Or, create a set of bylaws that outline the internal rules and structure of your organization.
    • Include details about board meetings, decision-making processes, tax year (annual or fiscal), and membership criteria if applicable.
  6. Form a Board of Directors:
      • Recruit individuals who are passionate about your cause and bring diverse skills to the table
      • Define their roles and responsibilities.
  7. Take your initial board actions:
    • Approving your articles of incorporation
    • Approving your bylaws & conflict of interest policy
  8. Apply for an Employer Identification Number (EIN):
    • Obtain an EIN from the IRS.
  9. File the initial registration form with the California Attorney General’s Registry of Charitable Trusts: Form CT-1
    • When you apply for these things, they will ask you for your bylaws and officers and articles of incorporation.
    • You need to do this within 30 days of receiving any assets
  10. File your documents with the California Office of the Secretary of State: Form SI-100
    • File your Articles of Incorporation with the Secretary of State
    • They will also want your bylaws and the list of your officers and a point of contact.
    • When you file, they will give you an account number. Write down and save the account number that they give you because the DOJ will want it.
  11. Open a Bank Account:
    • Set up a separate bank account for your non-profit organization.
    • They will ask for your EIN, and other documents that you have already created.
  12. File the Statement of Information:
    • In California, you need to file the Statement of Information with the office of the Secretary of State.
    • Do this within 90 days of the date of incorporation
  13. If you want to obtain tax exempt status, here are the additional steps to take.
    • File application for state tax exemption. Form 3500 or 3500 a
    • File application with the IRS. Form 1023 ($600) or 1023 EZ ($275).
  14. Register for State and Local Taxes:
    • California Franchise Tax Board.
  15. Create a Record-Keeping System:
  16. Develop a Fundraising Plan:
    • Plan how you will raise funds to support your organization’s activities.
    • Explore grant opportunities, individual donations, and other fundraising methods.
  17. Create a Website and Promote Your Organization:
    • You should have already selected and reserved the domain name in #2 above and are ready to move forward with this item.
    • If you have never built a website, you can follow the step-by-step info from Yoda at https://www.youtube.com/watch?v=yRUUMTPhLH0
    • Build an online presence to promote your non-profit and attract supporters.
    • Utilize social media and other marketing strategies to raise awareness.
  18. Comply with Reporting Requirements:
    • Submit annual report to the California Department of Justice
    • Submit biennial report to California Office of the Secretary of State.
    • Of course, file the appropriate tax documents each year with the Franchise Tax Board and the IRS, even if you have obtained tax exempt status.
  19. Seek Professional Advice:
    • Consult with legal and financial professionals to ensure compliance with regulations and best practices.