HOW TO FILE FOR A NONPROFIT

After considering your mission, what kind of nonprofit organization that you want to start, and figuring out how to run it, there are some additional steps that need to be taken in order to officially become a government recognized nonprofit organization. Below are some steps to applying to form a nonprofit corporation, and resources to help. 

1. You must receive file Articles of Incorporation

• What are Articles of Incorporation?
  • These are formal documents filed with the State Government body to legally document the creation of a corporation. 
• Colorado Secretary of State Incorporation
  • This is the Secretary of States website where you can file for an incorporation, search business databases, search to see if the name for your business is available, and has helpful guides and eLearning modules to assist you with learning how to stat a business in Colorado.
• Colorado Secretary of State Articles of Incorporation
  • This is breakdown of what you will need to have for the application to file for an incorporation in Colorado.
• Charitable Registration in Colorado
  • If your nonprofit will solicit contributions, or participate in charitable promotions, you will need to register the organization with the Secretary of State.
• Articles of Incorporation Sample
  • This page features a free downloadable example of Articles of Incorporation. The organization may wish to consult with an attorney to determine if appropriate.

2.  Once you have filled the Articles of Incorporation with the Colorado Secretary of States office, you then have to obtain an Federal Employer Identification Number (EIN) 

• What is an EIN?
  • According to the IRS an Employer Identification Number (EIN) is a Federal Tax Identification Number that is used to identify a business entity. It is a free service offered by the IRS and you can receive your EIN immediately. You will need to check with your state to make sure you need a state number or charter. 
  • If you are trying to file for tax exempt status (nonprofit) it’s best to be sure your organization is formed legally before you apply for an EIN. Nearly all organizations are subject to automatic revocation of their tax-exempt status if they fail to file a required return or notice for three consecutive years. When you apply for an EIN, we presume you’re legally formed and the clock starts running on this three-year period.

3. Apply with the IRS

• Form 1023/1023-EZ
  • Depending on how large you expect your nonprofit to grow, you will need to either file the 1023 form or the 1023-EZ form. The difference is that the 1023-EZ form has an income limitation of $50,000 each year for the first three year from filing. 
  • The application process can take up to 12-18 months to complete and you may be asked to revise your form.

• IRS Nonprofit Start Up Homepage

  The page provides links to the necessary IRS forms to file for 501(c)(3) status. The application completion does not mean automatic 501(c)(3) status. You must receive the Designation Letter from the IRS before you are considered tax-exempt

• Employee Identification Number

  This should be obtained first. An Employee Identification Number (EIN) allows you to create a banking account for the nonprofit.

• IRS Small to Medium Tax-Exempt Status

  This page contains interactive presentations created by the IRS. These workshops can assist your organizational leadership in understanding the benefits, limitations, and expectations for exempt organizations.

• Frequently Asked Questions about form 1023 and 1023EZ

• Form 1023

  Links to form 1023 and instructions for filing.

• Tips on how to e-file your 1023

  A short video prepared by the IRS on how to e-file your 1023.

• Form 1023-EZ

  Links to form 1023-EZ and instructions for filing

• Tips on how to file your 1023-EZ

  A short video prepared by the IRS on how to file your 1023-EZ.

• Tax Exempt Organization Search Tool

  You can check an organization's eligibility to receive tax-deductible charitable contributions (Pub 78 Data). You can also search for information about an organization's tax-exempt status and filings

• How to Lose Your 501 (c) (3) Tax-Exempt Status (Without Really Trying)

  Handout from the IRS about ways a nonprofit can lose their tax-exempt status.