Nonprofit Startup Service

This service is designed for individuals and organizations that would like to formally open a tax-exempt nonprofit corporation in the United States.

Official nonprofits can accept donations and issue tax receipts to donors.

Please read through the basic guidelines and information below and follow the instructions to complete your application.

Opening a Nonprofit – Basic Steps and Timeline

Application

You submit all of the required information (as outlined below) on the application form

EIN Filing

We file for an Employer Identification Number (EIN) with the IRS on your behalf and receive a CP 575 notice
(usually 1-2 business days)

Incorporation

We file as a nonprofit corporation on the state level on your behalf using the EIN (usually 3-5 business days)

Pay.gov Account

We open a nonprofit account with Pay.gov on your behalf (usually 1 business day)

Tax-Exempt Status

We file a 1023 form on your behalf requesting 501c(3) status (also known as “tax-deductible status”) from the IRS
(up to 4-6 months)

Nonprofit Approved

You receive and review your customized “Articles of Incorporation” and “Bylaws”

Nonprofit Startup Fee

We provide our NONPROFIT STARTUP service for a flat fee of $2,750, which includes all form filing and account creation fees.

You Will Need This Information To Begin

Please review to make sure you have all the required information before beginning the application process.

Your nonprofit’s name.

This will be the legal name of your nonprofit. It will be the name used on all your future legal documentation as well as the name under which you will be opening a bank account. Donors will also be writing out checks to this name.

Your nonprofit’s physical address.

This will be the legal office address registered to your nonprofit and used on all legal paperwork and fillings. It must be a USA-based address to which you have regular access, and where you can receive physical mail such as legal paperwork which will be sent to this address.

NOTE: You will be able to update or change this address once a year when filing your annual reports.

Your nonprofit’s dedicated phone number.

This must be a USA mobile number (with ability to receive SMS from the USA) to which you have regular access, even in Israel. It will be used on all legal paperwork as well as your bank account application and therefore should be regularly monitored and answered.

Your nonprofit’s dedicated email address.

This email address will be used on all legal paperwork as the nonprofit’s office email. It will be used to set up all your government accounts and notices. Therefore it must be an email address to which you have access and monitor at all times.

Your nonprofit’s description.

This should be a very basic description of the purpose and operations of your nonprofit, no more than a few sentences describing your nonprofit’s cause and your motivation behind starting it.

Your nonprofit’s board of directors.

Every nonprofit organization must legally have at least 3 board members. The job of these members is to oversee the organization and make decisions. Each of these members can also open a bank account for your nonprofit. You will need the following information for each member:

Managing/owner member:
Legal Name, Legal address, Phone number, Social Security Number, License number
General member 1:
Legal Name, Legal address, Phone number
General member 2:
Legal Name, Legal address, Phone number

Nonprofit Startup Application

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Frequently Asked Questions About Nonprofits

It is highly suggested that you read through everything before asking our staff your questions about starting a nonprofit.

What is a nonprofit?

A nonprofit is an organization that exists to serve a community or advance a social cause. For example, it can be a club, society, trade association, social advocacy group, or charity. Unlike for-profit businesses, nonprofits don’t distribute their profits to their shareholders, but instead funnel them back into their operations. It’s also important to note that nonprofits typically have an ongoing mission and are established without an end-date in mind.

How long does it take to start a nonprofit?

We want this process to be as quick and smooth as possible. We work fast but if we don’t have the required information from you, we will get slowed down. If you give us all the required information when we need it, we can have your nonprofit up and running in a matter of weeks. However, if you don’t provide us with the necessary information (or if it becomes difficult to reach you), this process can drag out tremendously and take up to 6 months.

Can you make money from a nonprofit?

Technically speaking, yes, your nonprofit will generate profit! However, all of this profit must go back towards covering the expenses associated with operating your organization and furthering your mission. These expenses can include things like rent, equipment, software, marketing costs, and paying staff.

Can the founder receive a salary?

The answer is yes! Just like any other employee, you deserve to be paid for your hard work. That being said, your salary can’t be directly tied to how much profit your organization makes. Your board of directors will decide on a reasonable salary and it will count as part of your organization’s expenses.

What is an EIN?

Just like any other corporation, your nonprofit needs to get an EIN, or Employer Identification Number. You’ll need it to hire staff, open a bank account in your organization’s name, and fill out many of the necessary registration forms that your local government requires. You can think of it as working for your nonprofit the way a Social Security Number does for an individual. It identifies your organization in government records.

Is there future compliance I need to be on top of once I have a registered nonprofit?

Once your nonprofit is up and running, there are a number of things you must do every year to keep your tax-exempt status.

The first thing you must do is file a 990 Form. This form collects information regarding your revenue, expenses, board members, achievements, and other operational information. However, which form you fill out depends on your gross receipts.

– If you have gross receipts over $50,000 (or gross receipts plus total assets), file a 990 Form with the IRS
– If you have gross receipts under $50,000, file a 990-N form, or e-Postcard with the IRS

After the 990 Form, you must be sure to file your annual report with the state tax authority.

What is the difference between a normal corporation and a nonprofit?

A normal corporation is a separate and distinct entity under the law. The corporate business structure can help shield the business’s owners – the corporation’s shareholders – from liability and, under some circumstances, help them reduce their taxes.

A nonprofit corporation (also known as a non-business entity) is an organization that has been formed by a group of people in order “to pursue a common not-for-profit goal,” that is, to pursue a stated goal without the intention of distributing excess revenue to members or leaders.A nonprofit organization is often dedicated to furthering a particular social cause or advocating for a particular point of view. In economic terms, a nonprofit organization uses its surplus revenues to further achieve its purpose or mission, rather than distributing its surplus income to the organization’s shareholders (or equivalents) as profit or dividends. This is known as the non-distribution constraint. The decision to adopt a nonprofit legal structure is one that will often have taxation implications, particularly where the nonprofit seeks income tax exemption or charitable status.

In the United States, nonprofit organizations are formed by filing bylaws or articles of incorporation or both in the state in which they expect to operate. The act of incorporation creates a legal entity enabling the organization to be treated as a distinct body (corporation) by law and to enter into business dealings, form contracts, and own property as individuals or for-profit corporations can.

What types of nonprofits are there?

Nonprofits can have members, but many do not. The nonprofit may also be a trust or association of members. The organization may be controlled by its members who elect the Board of Directors, Board of Governors or Board of Trustees. A nonprofit may have a delegate structure to allow for the representation of groups or corporations as members. Alternatively, it may be a non-membership organization and the board of directors may elect its own successors.

The two major types of nonprofit organization are membership and board-only. A membership organization elects the board and has regular meetings and the power to amend the bylaws. A board-only organization typically has a self-selected board and a membership whose powers are limited to those delegated to it by the board. A board-only organization’s bylaws may even state that the organization does not have any membership, although the organization’s literature may refer to its donors or service recipients as ‘members.’ The Model Nonprofit Corporation Act imposes many complexities and requirements on membership decision-making. Accordingly, many organizations, such as Wikimedia, have formed board-only structures.