Step One: Pick a Name and Form an Organization for Your Nonprofit
You must decide on a name for your organization and incorporate it with the Arkansas Secretary of State before submitting an application for 501(c)(3) registration. This can be done by mail or online. Pick a name that is distinct and hasn’t been taken by another organization.
Step 3: Write and submit your articles of incorporation The goal of your group, its name and address, the names and addresses of the original board of directors, and a statement that the organization is set up as a non-profit corporation should all be included in the articles of incorporation. The Arkansas Secretary of State must receive the documents of incorporation.
Apply for Tax-Exempt Status in Step Four You must submit IRS Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, in order to request tax-exempt status. Depending on the budget of your organization, there are different application fees. Applications are normally processed by the IRS in three to six months.
Other Related Questions and Answers:
You must register your non-profit organization with the Arkansas Secretary of State if it conducts business there. This contains businesses that are registered as non-Arkansas corporations yet operate in Arkansas. There may be fines and penalties for not registering. Who Should Not Be a Member of a Board of Directors? A person may not be eligible to serve on a board of directors if they have a conflict of interest with the organization, a history of financial mismanagement, or a criminal record. How Much Does it Cost to Launch a Nonprofit? Depending on the state and kind of organization, founding a non-profit can cost different amounts. The price to file articles of incorporation in Arkansas is $50. Depending on the organization’s financial situation, the application price for tax-exempt status ranges from $275 to $600. What is a 170(c) Organization, exactly? A particular category of tax-exempt organization that qualifies for charitable contributions that can be deducted from income is known as a 170(c) organization. These groups span the fields of religion, altruism, science, education, and literature. An organization must submit an application for and be granted tax-exempt status by the IRS in order to be recognized as a 170(c) organization.