I would like to start a local nonprofit organization, but I don’t have any idea where to start. Can you help?
So, you’re thinking about starting a nonprofit. What now? The first step to take is to decide whether the nonprofit path is the right one for you. Depending on your circumstances, additional organizational forms to consider include a more traditional corporation, a tax-exempt organization other than a 501(c)(3) public charity, and an unincorporated nonprofit association.
Assuming you definitely want to organize a nonprofit, you should seek out the people to form and manage it with you — your board of directors. Though often overlooked, this is an extremely important step. You need people who are not only committed to your mission, but who also have skills in, or are willing to learn skills in, areas such as fund-raising, financial reporting, and legal compliance.
Now the paperwork begins! Buttressed by the support of your new board, you will decide upon your name, then reserve it with the secretary of state. Next you must write and file your articles of incorporation with the SOS. Sample forms are available online (see links below). Once you have become a legally constituted entity in the state of Texas by filing your articles, you should then seek a federal ID number. This is true even if you will not have any employees.
Next, draft and approve your corporate bylaws. There are some basic requirements for these bylaws in the Texas Nonprofit Corporation Act (see resources below), but you are given a good deal of flexibility to structure your nonprofit in the manner best suited to your goals.
Your final step is to apply for tax exemption, first from the federal government and then from the state. These applications are detailed endeavors, and you should rely on the Web sites listed below for forms and guidance or seek legal assistance if necessary.
Nonprofit startup kit: www.greenlights.org (Nonprofit Resources/Forms Library/Planning).
SOS filings: www.sos.state.tx.us/corp/nonprofit.shtml
US treasury filings: www.irs.gov/charities/charitable/index.html
State tax exemption: www.window.state.tx.us/taxinfo/taxpubs/tx96_122.html
This article appears in July 16 • 2004.