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Before you proceed, we do like to advise you to research other organizations and resources in your area. The state of Louisiana has over 20,000 nonprofit organizations all competing for very limited resources. We encourage you to consider partnering with or working with other organizations before creating a new one. This is a challenging time for nonprofit organizations and resources are very limited. We also ask you to consider whether you have the time and resources available to operate a business, manage a Board of Directors, have employees, and find the necessary funding for your operation. If you feel like you are up for the challenge and your organization will fill a need not currently being met, read the information below, then reach out via email at info@louisiananonprofits.org as we would love to have you as part of our membership network. |
What is a Nonprofit Organization?
“Not-for-profit” is NOT a business model.Nonprofit is a tax status assigned to a type of business by the IRS. People often use the words “nonprofit” and “tax exempt” interchangeably. Congress has created almost three dozen types of tax-exempt organizations in different sections of the tax code. Each section identifies conditions that must be met to be exempt from paying federal income taxes. The one common condition is not paying out profits (“no part of the organization’s net earnings can inure to the benefit of any private shareholder or individual”); hence the term, “nonprofit.” There are numerous categories of nonprofit corporations, but 501(c)(3) is the largest subset:
Why do individuals want to start a nonprofit organization?
Misconceptions
Other options to consider before starting a nonprofit organization
After you have done a market assessment of your area by researching other organizations, your area’s populations, needs and more and you are still determined, you need to contact two agencies: The Louisiana Secretary of State & The Internal Revenue Service
Steps to IncorporationStep 1: Plan, Plan, Plan
Step 2: Recruit and Develop a Board of Directors
Step 3: Define the Activities of the Organization Financial Support
Step 4: Reserve a Corporate Name Step 5: Obtain your EIN (Employer Identification Number) Step 6: Articles of Incorporation Step 7: Bylaws Step 8: IRS Form 1023 Application for 501c3 status- key parts
Step 9: Develop Policies & Procedures Manual Step 10: Open a Bank Account Step 11: Determine Insurance Needs
Step 12: Establish an Operations Calendar
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