Form a tax-exempt 501(c)(3) nonprofit corporation with mission and board setup
Request non-profit 501(c)(3) formation and we'll walk you through it step by step.
Forming a nonprofit takes two separate steps that are often confused. First you incorporate as a nonprofit corporation with a Secretary of State. Second, you apply to the IRS for recognition of exemption under section 501(c)(3), which is what actually makes donations tax-deductible and unlocks most grant eligibility.
State incorporation is where the exemption is won or lost. The IRS requires specific language in the articles — a purpose clause limited to exempt purposes and a dissolution clause dedicating assets to another exempt organization. Articles filed without them typically have to be amended before the exemption application can succeed.
We prepare and file the nonprofit articles with the required clauses so your later 501(c)(3) application isn't held up by a fixable drafting problem. State fees are passed through at cost.
No. Incorporation is a state filing; tax exemption is a separate IRS determination that has to be applied for after the entity exists.
It varies by state, with three being a common minimum, and the IRS pays attention to whether the board is independent rather than controlled by one family.
Smaller organizations that meet the revenue and asset thresholds can use the streamlined application; larger ones file the long form, which requires narrative program descriptions and budgets.
Yes. It can't distribute profit to owners, but it can pay reasonable compensation for actual work, including to founders serving as staff.