Prepare the Application for Recognition of Exemption (Form 1023)
8
Approval: Application for Recognition of Exemption
9
File Form 1023 with the IRS
10
Register with State's Attorney's Office
11
Open a bank account in the Nonprofit's name
12
Set up a system for recording financial transactions
13
Approval: Financial transactions system setup
14
Begin Fundraising Activities
15
File for State Tax Exemption if applicable
16
Submit Annual Reporting Requirements - IRS Form 990
17
Approval: Annual Reporting Requirements
18
Renew State Licenses and Permits
19
Conduct an Annual Review of Policies and Procedures
20
Approval: Policies and Procedures Review
Define the mission of the Nonprofit Organization
In this task, you will define the mission of the Nonprofit Organization. The mission statement outlines the purpose and goals of the organization, guiding its activities and decision-making. It serves as a compass, directing the organization towards its desired impact in the community. Think about the target beneficiaries, the values the organization stands for, and the long-term aspirations. What do you want to achieve? How will you make a positive change? Ensure the mission statement is clear, concise, and inspiring, reflecting the core values and objectives of the organization.
Establish the Board of Directors
In this task, you will establish the Board of Directors for the Nonprofit Organization. The Board of Directors is responsible for the overall governance and strategic direction of the organization. They provide leadership, accountability, and support to ensure the organization operates in line with its mission. Consider the desired skills, expertise, and diversity that will contribute to a well-rounded board. Identify potential candidates and reach out to them to gauge their interest. Collaborate with the potential board members to establish roles, responsibilities, and expectations. Once the board is finalized, hold an initial meeting to discuss important matters such as bylaws, policies, and procedures.
1
Chairperson
2
Vice Chairperson
3
Treasurer
4
Secretary
5
Board Member
1
Monthly
2
Quarterly
3
Biannually
4
Annually
Develop a detailed Business Plan
In this task, you will develop a detailed Business Plan for the Nonprofit Organization. The Business Plan serves as a roadmap, outlining the organization's goals, strategies, and operational details. It provides a clear direction for the organization, ensuring alignment with its mission and objectives. Consider various aspects such as funding, programs, marketing, and operations. Identify the target audience, their needs, and how your organization will meet those needs. Include a financial plan to outline revenue sources, expenses, and projected growth. The Business Plan should be comprehensive, well-researched, and adaptable to changes in the external environment.
Draft the Nonprofit Bylaws
In this task, you will draft the Nonprofit Bylaws. Bylaws are the rules and regulations that govern the internal operations and management of the Nonprofit Organization. They provide a framework for decision-making, define the roles and responsibilities of board members, and establish procedures for meetings, voting, and other important activities. Consider including sections on membership, board structure, officer elections, conflicts of interest, and amendments. Work closely with legal counsel to ensure compliance with applicable laws and regulations. Once drafted, review the Bylaws with the Board of Directors and make necessary revisions before finalizing them.
Secure the necessary state licenses and permits
In this task, you will secure the necessary state licenses and permits for the Nonprofit Organization. State licenses and permits may be required depending on the nature of the organization's activities. Research the specific requirements for your state and ensure compliance. Some common licenses and permits may include charitable solicitation licenses, fundraising event permits, and professional licenses for specific services offered by the organization. Contact the appropriate state agencies to understand the application process, fees, and any supporting documents required. Keep track of the deadlines and requirements to avoid any delays or penalties.
Apply for an Employer Identification Number (EIN)
In this task, you will apply for an Employer Identification Number (EIN) for the Nonprofit Organization. An EIN is a unique identification number issued by the Internal Revenue Service (IRS) for tax purposes. It is required for various activities such as opening a bank account, hiring employees, and filing tax returns. Visit the IRS website or contact their helpline to understand the application process. Gather the necessary information such as the organization's legal name, address, and purpose. Fill out the Application for Employer Identification Number (Form SS-4) accurately and submit it to the IRS. Keep a copy of the confirmation receipt for future reference.
Prepare the Application for Recognition of Exemption (Form 1023)
In this task, you will prepare the Application for Recognition of Exemption (Form 1023). Form 1023 is required to apply for tax-exempt status under section 501(c)(3) of the Internal Revenue Code. It demonstrates that your organization meets the requirements to be recognized as a tax-exempt nonprofit. Review the instructions and guidelines provided by the IRS carefully. Gather all the necessary financial, organizational, and program-related information required to complete the form. Accurately fill out the form and attach any supporting documents as specified. It is recommended to seek professional guidance or legal counsel to ensure accuracy and compliance with IRS regulations.
Approval: Application for Recognition of Exemption
Will be submitted for approval:
Prepare the Application for Recognition of Exemption (Form 1023)
Will be submitted
File Form 1023 with the IRS
In this task, you will file Form 1023 with the IRS. Filing Form 1023 is the next step after preparing the application for tax-exempt status. Carefully review the completed form and all the attached supporting documents for accuracy and completeness. Make copies of the form and all attachments for your records. Follow the instructions provided by the IRS to file the form electronically or by mail. Pay attention to any filing fees and deadlines. Keep track of your submission and any correspondence from the IRS. It may take several months for the IRS to review and process your application.
Register with State's Attorney's Office
In this task, you will register the Nonprofit Organization with the State's Attorney's Office. Registration with the State's Attorney's Office may be required depending on your state's regulations. Research and gather the necessary information and documents required for registration. This may include the organization's legal name, purpose, officers' names and addresses, and any additional supporting documents. Complete the registration form accurately and submit it to the State's Attorney's Office. Keep copies of the registration form and any correspondences for future reference.
Open a bank account in the Nonprofit's name
In this task, you will open a bank account in the Nonprofit's name. A dedicated bank account for the Nonprofit Organization is essential to manage financial transactions, receive donations, and pay expenses. Research and choose a suitable bank that offers services tailored to the needs of nonprofit organizations. Contact the bank to understand the account opening process, required documents, and any specific requirements for nonprofits. Gather the necessary documents such as the organization's EIN, Nonprofit Bylaws, and Board of Directors' resolution authorizing the account opening. Visit the bank to complete the account opening process and obtain the necessary account details and documentation.
Set up a system for recording financial transactions
In this task, you will set up a system for recording financial transactions of the Nonprofit Organization. A well-organized and accurate financial recording system is vital for tax compliance, accountability, and decision-making. Select an accounting software or system suitable for the organization's needs. Customize the chart of accounts to accurately categorize income, expenses, and assets. Establish a process for recording and reconciling financial transactions regularly. Train relevant staff or volunteers on the system and provide clear guidelines on documentation and record-keeping. Ensure backups and data security measures are in place to protect financial information.
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QuickBooks
2
Xero
3
Wave
4
Zoho Books
5
FreshBooks
Approval: Financial transactions system setup
Will be submitted for approval:
Set up a system for recording financial transactions
Will be submitted
Begin Fundraising Activities
In this task, you will begin fundraising activities for the Nonprofit Organization. Fundraising is crucial to support the organization's programs, operations, and growth. Identify various fundraising strategies that align with the organization's mission and target audience. This could include events, grant applications, online campaigns, corporate partnerships, and individual donations. Develop a fundraising plan with specific goals, timelines, and budget considerations. Assign responsibilities to team members or volunteers and regularly evaluate the effectiveness of each fundraising activity. Comply with any legal and ethical guidelines related to fundraising activities in your jurisdiction.
1
Event Planning
2
Grant Writing
3
Online Campaigns
4
Corporate Partnerships
5
Individual Donations
File for State Tax Exemption if applicable
In this task, you will file for State Tax Exemption if applicable. State Tax Exemption provides the Nonprofit Organization with relief from state sales tax, income tax, or other applicable taxes. Research the specific requirements and eligibility criteria for State Tax Exemption in your state. Gather the necessary information and documents required for the application. This may include the organization's EIN, Nonprofit Bylaws, financial statements, and any other supporting documentation required by your state's tax authority. Complete the application accurately and submit it to the appropriate state tax authority. Keep copies of the application and any correspondences for future reference.
1
Department of Revenue
2
Tax Board
3
Tax Commission
Submit Annual Reporting Requirements - IRS Form 990
In this task, you will submit the Annual Reporting Requirements - IRS Form 990. Form 990 is an annual information return that tax-exempt organizations are required to file with the IRS. It provides information about the organization's activities, governance, and financial status. Review the instructions and guidelines provided by the IRS for Form 990. Gather the necessary financial and organizational information required to complete the form. Ensure accurate reporting of income, expenses, assets, and other required details. File the Form 990 electronically or by mail before the deadline specified by the IRS. Keep copies of the form and any supporting documents submitted.
Approval: Annual Reporting Requirements
Will be submitted for approval:
Submit Annual Reporting Requirements - IRS Form 990
Will be submitted
Renew State Licenses and Permits
In this task, you will renew the State Licenses and Permits for the Nonprofit Organization. State licenses and permits may have expiry dates and require renewal to maintain compliance. Keep track of the renewal dates for all licenses and permits obtained by the organization. Research the renewal process and requirements specified by the relevant state agencies. Prepare the necessary documents, forms, and fees required for renewal. Submit the renewal applications before the expiry dates to avoid any disruption in the organization's activities. Keep copies of the renewal applications and any correspondences for future reference.
Conduct an Annual Review of Policies and Procedures
In this task, you will conduct an Annual Review of Policies and Procedures for the Nonprofit Organization. Regularly reviewing and updating policies and procedures ensures that they remain relevant, effective, and compliant with regulations. Identify the policies and procedures that require review, such as financial controls, fundraising guidelines, conflict of interest policies, and volunteer management procedures. Assess their effectiveness and make any necessary updates or enhancements. Involve relevant stakeholders, such as board members, staff, and volunteers, in the review process to gather their input and ensure buy-in. Document the outcomes of the review and any actions taken for future reference.
1
Financial Controls
2
Fundraising Guidelines
3
Conflict of Interest Policies
4
Volunteer Management Procedures
5
Code of Ethics
Approval: Policies and Procedures Review
Will be submitted for approval:
Conduct an Annual Review of Policies and Procedures
