Starting a Nonprofit 501(c)(3)
Starting a Section 501(c)(3) nonprofit can be quite an adventure! What legal steps are required? While the details may vary widely, the concrete steps may be best summarized as follows: (1) form a nonprofit corporation, consistent with Section 501(c)(3) requirements; (2) apply to the IRS for recognition of tax-exempt status; and (3) understand and comply with applicable legal requirements for both state nonprofit status and federal tax-exempt classification. Vision is essential, and so is taking the right steps with the end goal in mind. The following guidance sets forth a roadmap for taking these steps, including numerous references to other Wagenmaker & Oberly blog articles providing additional guidance. Note that these steps apply equally well for other types of tax-exempt nonprofits, such as social clubs and trade associations, except with respect to tax deductibility of charitable contributions and other privileges accorded only to Section 501(c)(3) organizations.