Starting a Charity (Part 2 of 2)

1. Laws – Setting up the laws that govern your charity is very important and some careful thought must be put into it. The laws must state as to how decisions are made, who is involved in making the decisions, the setup of the charity and the governing structure you choose to direct and guide the charity.

2. Apply – Charities are viewed as corporations by the state. Seek out your state’s Secretary of State and file an application. You will have to fill out some paperwork and pay some fees as well.

3. Get an EIN – An Employer’s Identification Number is very important to your charity. Without this you cannot hire employees and you will have lots of issues with taxes. Applying is easy and all you have to do is visit the IRS website or just give them a call and inquire about the procedure.

4. Apply again – After you have come up with your Articles of Incorporation and got approval from the Secretary of State, you must file with the IRS for a Charitable status. This form can be found online as well on the IRS website.

5. Hierarchy – You must setup a Board of Directors to govern the charity. In addition to this, you must also appoint a Registered Agent. This is the person who will receive all communications originating from the state with regards to your charity.
Once all of this is done, you are good to go. Although it may seem like a lot of work, it is after all for a good cause. Setting things up right can help you help others without any hitches. It can also help you avoid unnecessary headaches later on in time.