501(c)(3) Checklist

Obtaining 501(c)(3) status will be the first steps a nonprofit organization will need to complete in order to conduct business as a tax-exempt organization. Once obtained, the organization is approved to conduct fundraising activities to move its mission forward.
  • Name Reservation - When forming your organization, you will want to make sure that you secure the desired name as soon as possible. Completing the Name Reservation Request will reserve the selected name for 60 days, giving you time to begin the registration process.
    *Fee Associated.
  • Articles of Incorporation - All nonprofit organizations must first be recognized as a corporation in the State of California. In this document the organization’s founder will need to complete the overall information of the nonprofit organization along with specific language that describes the organization’s function. The details describing the organization’s mission will ensure that tax exemption is received.
    *Fee Associated.
  • Appoint a Board of Directors/Principal Officers - A board of directors is essential for all nonprofits as it is the governing body of an organization. Board members will meet throughout the year to discuss and make decisions on behalf of the organization. The board of directors will be viewed as the high level governing group no to be confused with the staff leadership level. Nonprofit organizations will typically have 3 principal officers to begin. President, Secretary and Treasurer. These roles will be defined by in the organization’s bylaws.
  • Draft Bylaws - This operating manual will be created by founder(s)/board of directors when establishing the organization. The organization’s bylaws will govern how the nonprofit organization conducts business.
  • Statement of Information - An organization must complete a statement of information within 90 days of filing their Articles of Incorporation. This form will divulge specifics about the organization’s officers, owners and business descriptions.
    *Fee Associated.
  • Apply for EIN - An Employer Identification Number or EIN is a unique number that identifies your business for tax purposes. This number will play a crucial role in applying for banking accounts, filing taxes and future applications/registrations.
  • Register as a Charitable Trust - Registering as a charitable trust is a key step toward a 501(c)(3) determination. In order to register an organization will need to provide information about the organization, its officers, primary activities, any assets associated to the organization, as well as any legal history.
    *Fee Associated.
  • Apply for Exception Status - The application for recognition of exception under section 501(c)(3) of the Internal Revenue Code is the form used to request tax-exemption. Traditionally a 26-page application used for nonprofit organizations to describe the organization’s business plan and reasoning for exemption status.
    *Fee Associated.
  • Submission of Exception Request - Once an organization has obtained tax exempt status under the IRC Sections 501(c)(3), 501(c)(4), 501(c)(5), 501(c)(6), 501(c)(7), or 501(c)(19). An organization must ensure that they also obtain tax-exempt status through the State of California.
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