How to establish a 501(c)(3) non-profit charitable organization

The United States Internal Revenue Code Section 501(c) identify 29 types of non-profit organizations ranging from certain corporations to qualified non-profit health insurance organizations that are exempt from paying income tax.  Charitable organizations are listed under Section 501(c)(3) and therefore, many of us refers to non-profit charitable organizations as 501(c)(3).

The application process to establish a non-profit charitable organization could be tedious, complex, and time consuming.  There are many Web sites that charge a fee to help you with the process.  Advertised fee varies depend on the Web site and if you seek assistance from any of these sites do your homework first.

If you are interested in establishing a non-profit charitable organization, here are some steps to remember.  Once you decide what type of organization you are interested in, create a written mission statement for your new organization.  You need to elect a Board of Directors for the organization and file Articles of Incorporation and establish bylaws. Filing Articles of Incorporation may need submittal of an Employee Identification Number (EIN) obtained from the IRS.  Once you develop your organization you can submit Form 1023 to IRS to establish 501(c)(3) and apply for tax exempt status with the state and local agency.