Before deciding to become a nonprofit, think about whether this is the best way to reach your group’s goals. Consider what organizations already exist in your community and how much time and energy your group can realistically put into running a nonprofit.
It can help to write down and answer questions like:
- Why do we need a new nonprofit?
- Who are we trying to serve, and do they trust us?
- Is another group already doing something similar?
- What unique viewpoint or approach would we bring?
- What am I willing to give up or invest to make this organization’s vision happen?
There are times when working with another fiscal agent, collaborating with an existing organization, or remaining an informal group are better options. Extension staff can talk with you and work with your group as you consider this.
Once you’re sure that forming a nonprofit is the right step, use this checklist to guide you:
Step 1: Choose a name for your nonprofit and check that the name is available using the Wisconsin Department of Financial Institution’s website under “Search Corporate Records.”
Step 2: File Articles of Incorporation (using Wisconsin Form 102 -includes a $35 fee). Include your mission statement (the purpose of your organization – what will you exist to do?). You can find more information in IRS Publication 551 “Tax Exempt Status for Your Organization”.
Step 3: Write your bylaws while you wait for state approval. Amy can work with your group to write these, provide examples, and advise on best practices specific to needs of your group. Email her at amy.ebert@wisc.edu for help.
Step 4: Hold an Organizational Meeting.
Typical activites during an organizational meeting include:
- Electing initial officers and board members.
- Deciding who to authorize to open a business bank account.
- Approving the bylaws through a corporate resolution.
- Documenting the approval of bylaws and election of officers in the meeting minutes.
Step 5: Get confirmation from the State that your Articles of Incorporation are approved.
Step 6: Apply for an EIN from the IRS.
Step 7: Apply for tax-exempt status with the IRS. Most small nonprofits can use the short application (Form 1023-EZ, $275 fee). Larger or more complex nonprofits must use the long application (Form 1023, $600 fee). You will need your Articles of Incorporation, EIN, and bylaws.
