501(c)

How to Start a Nonprofit Organization

RENOSI partners with all different kinds of nonprofit groups. As a result, we've worked with school groups, medical organizations, and large associations. Our experience includes small grassroots nonprofits, but we also partner with large multi-chapter nonprofits. So, whether you seek to start a nonprofit, run or expand it, we will help ensure you meet all regulations.

The following is some information to help guide you as you get started:

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  1. Find a team to help start a nonprofit

  The first thing for starting a nonprofit is to recruit a team of officers and other volunteers. These people will help you to spread out the work. That means, as the founder, you'll have the chance to focus on the overall strategy and mission.

• 2. Create bylaws for a nonprofit, association or foundation

  One of the most vital documents for any business or nonprofit is its bylaws. So, when you start a nonprofit, RENOSI will partner with you to ensure you have bylaws that suit your organization. Take a look at our 501c Sample Bylaws.

  
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  3. Budget to start a nonprofit and also run a nonprofit

  After you start a nonprofit, the next activity to think of is the budget. Reviewing and approving an annual budget is a key function of your board of directors. In addition, financial integrity is essential for the nonprofit, as well as federal and state regulators. As a result, implementing financial controls to protect your assets is critical. Typically, your nonprofit’s board of directors will review and approve the budget created. Take a look at our Guide to Conducting an Internal Financial Review. You can also email us at [email protected] to receive your free budget template.

• 4. Update accounts for a nonprofit

  Once you start a nonprofit and have your IRS tax exemption and EIN, it is necessary to open a bank account. The bank will request a specific document called the CP575—this is the IRS letter that assigns your organization its EIN (aka. Employer Identification Number or its TIN, Taxpayer Identification Number). Not only will we obtain the EIN for you, but we will also store it in your online RENOSI files.

  
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  5. File on time to the IRS and state

  Finally, the IRS requires 501(c) groups to file a 990-series tax return after you start a nonprofit. Also, most states require the filing of an annual corporate report, fundraising, and sales tax reports. RENOSI ensures that all these filings get done on time and consistently so that you don't lose your tax-exempt status. (Note: State filing fees may apply)

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  Next steps: Open a Nonprofit Bank Account

  Once you start a nonprofit and have your IRS tax exemption and EIN, it is necessary to open a bank account. Make sure to choose the bank that is the best fit for your nonprofit. We recommend our banking partner, Crowded, because they offer a financial platform that allows for easy ways to collect, spend and manage money online.

  Whichever bank you choose will request a specific document called the CP575 — this is the IRS letter that assigns your organization its EIN (aka. Employer Identification Number or its TIN, Taxpayer Identification Number). Not only will RENOSI obtain the EIN for you, but we will add your CP575 to your online document storage.