By NEO Law Group
Although the vast majority of individuals who set out to start a nonprofit do so with the best of intentions, starting a nonprofit requires much more than just good intentions.
Founders should invest meaningful time and thought in determining whether they can access the human, financial and other resources necessary to create a sustainable organization that will effectively and efficiently bring value to the public. And they should understand the various considerations and issues involved with starting and operating a nonprofit. For a Step-by-Step Guide for Starting a California Nonprofit, check out our article for CalNonprofits here.
Most startup charitable organizations and foreign organizations starting to operate or fundraise in California are required to register with the California Attorney General’s Registry of Charities and Fundraisers. Until very recently, registrations were completed on paper and mailed to the Registry. A link near the top of the Initial...
A new nonprofit is commonly created when a program or project spins off from a separate nonprofit. Sometimes a project spins off from a fiscal sponsor, perhaps after a planned incubation period. And sometimes a program spins off from a nonprofit because of a mutual desire to provide greater...
It typically takes a nonprofit organization a number of months after it forms to file with the IRS an application for recognition of tax exemption. Then comes the waiting process. It may take many months for the IRS to reply, hopefully with a favorable determination letter recognizing the organization...
In California, the Attorney General regulates charities, the professional fundraisers who solicit on their behalf, and other persons and entities that hold charitable assets or operate charitable fundraising platforms. The information below (except for the headings and an additional hyperlink for our readers’ convenience to the Registry Verification Search...
Figure 4: Taxonomy of 501(c)(3) Organizations Approved in FY 2021 A startup nonprofit wishing to apply for IRS recognition of tax-exemption under 501(c)(3) must file either Form 1023 or Form 1023-EZ. The Form 1023-EZ is only available to organizations that meet certain eligibililty requirements, including projection of gross revenues...
Multiple Vehicles for Individual Philanthropy Anyone can dream … but I’m not convinced this is necessarily a dream scenario. Aspiring to be a billionaire appears to come with difficult concessions, serious risks, and major changes to relationships and activities. But at first blush, it sounds cool to be able...
Many well-intended individuals who want to work on addressing public, social, and environmental needs think about starting a charitable nonprofit. Founding and leading a nonprofit may be viewed as a badge of significance and honor. But before moving forward, founders of a charitable venture should first consider the alternatives....
After a domestic nonprofit takes the first exciting steps of incorporating and filing its Application for Recognition for Exemption (Form 1023) with the IRS, it may be surprised to find out that it may take the IRS 6 months, or even much longer, to grant the nonprofit its official...
The IRS recently revised Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, as an online fill-in form that must be filed electronically. You can find an overview of the mechanics of e-filing Form 1023 here. For lawyers and tax practitioners, you may...
A California nonprofit corporation is formed by the filing of nonprofit articles of incorporation (Articles). There are three types of California nonprofit corporations: public benefit corporations, mutual benefit corporations, and religious corporations. Because they are governed by different laws, the Articles must reflect the appropriate type. In this post,...