Nonprofit Formation
State LEvel
First steps in making your nonprofit an official entity
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What type of nonprofit do you want to be?
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Voting membership?
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Mutual Benefit or Public Benefit?
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Which Federal Exemption Status matches your activities?
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501(c)(3), (c)(4), or other type
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Write and file your Articles of Incorporation with the State
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Register with the Financial Crimes Enforcement Network (FinCEN) within 30-days
Governance Set-Up
Setting your nonprofit up for long-term success with a first board of directors and core governing documents
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Identify initial board members
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Draft Bylaws - Your nonprofit board's core governing document
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Apply for an Employer Identification Number (EIN)
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Host First Organizational Meeting
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Appoint initial Board of Directors
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Discuss and adopt Bylaws
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Other potential activities: review initial policies and approve opening bank account and initial authorized signers
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Open checking account at authorized bank
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Board adopts following policies: conflict of interest, whistleblower and non-retaliation, and financial controls
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Board develops and approves a first annual budget
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If a public benefit organization, register with Oregon Department of Justice Charitable Activities Section
Federal Tax-Exempt Status
Achieving recognition by the IRS as a tax-exempt organization
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For 501(c)(3) applications
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Fill out and save a copy of Form 1023EZ Eligibility Worksheet
- Gather required information for completion of Form 1023 or 1023EZ
- Fill out and submit form electronically on IRS website
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- For all other 501(c) organization types
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Gather required information for completion of Form 1024
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Fill out and submit form electronically on IRS website
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And Wait.
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The IRS reviews applications as received, and typically reviews 1023EZ applications in 4-6 weeks and Form 1023 or 1024 applications in 9-12 months
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* If applications are submitted within 27 months of the date the organization was incorporated with the State, the IRS will grant tax-exempt status to the organization retroactive to the date of incorporation.
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After the IRS issues a tax exempt determination for the nonprofit, withdraw registration with the FinCEN (organizations with tax exempt status do not need to register with the agency)