How to start a nonprofit organization in high school

PartyNextDoor
Sat, 11 Jul 2015 00:18:48 +0000

If there’s a Non-Profit or organization in your area that deals with something similar, consider asking them if you can start an umbrella organization underneath them. Unless you are looking for grants and want to show yourself as a credible partner, it may be better to just act as an organization with no legal status.

Registering a Non-Profit is a long and arduous process. You first need to think of what type of Non-Profit you want it to be out of the hundreds of available forms, such as a Foundation or a Public Charity. Then, you need to decide who you want your Board Members to be, and who can Incorporate the Non-Profit for you as you usually have to be 21. Here are the requirements:

One (1) or more natural persons of the age of twenty-one (21) years or more may act as incorporators of a corporation by executing and filing in accordance with § 4-26-1201 articles of incorporation for the corporation.

A.C.A. § 17-24-302 Licensing qualifications

(a) The State Board of Collection Agencies shall have the authority to issue a license to an applicant for a license to do business as a collection agency, provided that the applicant meets the following qualifications:

(1) The applicant is at least twenty-one (21) years of age;

(2) If a partnership, the names of the partners, their ages, sex, and their business address are provided, and the members of the partnership are at least twenty-one (21) years of age; and

(3) The proposed managers of a corporation or the owners of not less than fifty percent (50%) of the stock of the corporation are at least twenty-one (21) years of age.

Then, you need to register the Non-Profit with the State, and the registration process varies state by state. In most states, you can complete the form online.

Usually, you file under Filing Act 1147 of 1993 as a Domestic Non-Profit - Form NPD01, but again, the form may vary by state.

Once you have found an incorporator, formed a Board, and drafted a mission, then you must look for a registered agent who will handle all legal work and take care of lawsuits for you. You must put the name of the registered agent on the state forms before you submit your application with the state. The basic ones usually charge $50-$100 per year. You may list your organization as your registered agent, but this is only possible in a few states I believe.

NOW, once you have done all that, you need to a whole bunch of forms to register your Non-Profit with the IRS, which recognizes your organization on a federal level. Failure to register with the IRS can lead to the forced dissolution of your organization. The fee is $400, and I think a 6-12 month process for them to consider whether or not they want to recognize your Non-Profit. It helps to have a lawyer fill out all these forms. With this, you will receive 501©(3) status. While you do this, you also need to receive an EIN Number, which is supposed to be used to identify employees, but technically used by the IRS to label your organization. This is free, but requires another process, though not as lenghty.

BUT, it is possible to self-declare yourself as a 501©(3) with the IRS. All you have to do is submit an annual Form 990-N. The issue is that the only type of organization that would be able to self-declare is a public charity if gross receipts are no more than $5,000 annually. If your organization is a private foundation, meaning that you need to receive money and aid from close relatives and family and friends, instead of official grant institutions, then your organization cannot self-declare with the IRS.

I run a Non-Profit that has self-declared with the IRS.

Here are some helpful pages to search when you are on the IRS website: Publication 1771, 4220, 4630, and most important: Publication 4221-PF (Tells you what and when to file documents).

If you need any more help, PM me.