If you’re thinking about starting a nonprofit, you’re not alone—and you’re asking the right questions. Whether your goal is to launch a community initiative, support a cause you care deeply about, or build a lasting organization, understanding the basics can make all the difference. Below, we answer the top three questions aspiring changemakers ask us every day:
1. What Does It Take to Start a Nonprofit?
Starting a nonprofit involves more than just a great idea—it requires planning, structure, and compliance. At a minimum, you’ll need to:
- Choose a name and define your mission
- Recruit an initial board of directors (more on that below)
- File articles of incorporation with your state
- Apply for an Employer Identification Number (EIN) from the IRS
- Draft bylaws that outline how your organization will operate
- Submit IRS Form 1023 (or 1023-EZ) to apply for 501(c)(3) tax-exempt status
The process can seem complex, but with the right guidance and support, it’s entirely doable. Clear goals, good documentation, and organized records will help set you up for success.
2. Do I Have to Have a Board for My Nonprofit?
Yes—having a board of directors is not only essential for good governance, it’s legally required in most states to incorporate and to apply for 501(c)(3) status. The IRS expects at least three unrelated board members, although the exact number may vary by state. Your board helps oversee the mission, make strategic decisions, and ensure the nonprofit meets its legal and ethical obligations. Think of your board as your first line of accountability and support—they are key partners in your mission’s success.
3. How Long Does It Take to Get 501(c)(3) Status from the IRS?
The timeline for approval depends on the form you file and the complexity of your organization:
- Form 1023-EZ (for eligible smaller nonprofits): Typically 4 to 8 weeks.
- Standard Form 1023: Can take 6 to 8 months, sometimes longer, depending on IRS backlog or if they request additional information.
Once approved, your tax-exempt status is retroactive to the date you filed your application or incorporated (if within 27 months).
Starting a nonprofit is a powerful way to turn passion into action. And while it takes structure and patience, you don’t have to do it alone. Whether you’re just getting started or in the thick of paperwork, we’re here to help guide you every step of the way.
Have more questions? Set up your no-obligation 15-minute Nonprofit Strategy Call today: https://mccormicklawbooking.as.me/nonprofit or call us at 757-250-5300
