Many make the method of beginning a nonprofit and filling in the 501c3 application difficult when in reality it's a reasonably easy process. Many when starting a nonprofit search for the"501c3 Application," when in reality there are way more steps than simply the 501c3 application. There are countless corporations that make their living off charging unreasonable charges to help other people who want to start nonprofit organizations. It's not necessary to pay some other person money to fill out the 501c3 application when setting up a not for profit organization. Setting up a nonprofit can be done quickly and easily. Read on and I am going to explain the process to help anybody get a nonprofit created without paying excessive fees to do it.
Many constantly search the internet hunting for all of the steps to create a non-profit, while simutaneously expecting to find an affordable way. There is usually two ways to make a non profit for doing charitable non profit work. First is by forming an independent 501c3 non profit and the second's thru Fiscal Sponsorship. Each ways of forming a non profit work fine, however I think more individuals enjoy running the Fiscally Sponsored non profit. A Fiscally Sponsored non profit has little documentation or cost to get started and no 501c3 application. The process to start each is explained below.
Independent 501c3 Application
The steps to form an independent 501c3 are not as long as they are difficult. Creating an independent non-profit isn't inexpensive and can run over $1000 in just the costs to file the 501c3 application with the state in which the non-profit is incorporating and the IRS. Sadly, there is no way round the incorporation fees and the filing costs to the IRS. Nevertheless you do not necessarily need to pay somebody to help you do do this. The steps are:
1. Incorporate a non-profit corporation in the state you you will work in
2. Create Bylaws in which to govern your corporation
2. Apply for tax exempt standing by filling out and filing the IRS Form 1023 (501c3 application)
3. Sign up for an EIN number
4. Make an application for a business license
5. Open a checking account once the non profit company is established
That is truly all there is to it. I will be able to warn you that the IRS FORM 1023, which some call the 501c3 applicaition is long and somewhat tough to fill out. You might need to consult an expert and pay a fair fee for help to get this 501c3 application completed. Once the IRS FORM 1023 is filed with the IRS it can take many months until accepted.
No 501c3 Application
However, Fiscal Sponsorship is clearly a simpler route since there is no 501c3 application. Fiscal Sponsorship is a formal arrangement in which a 501c3 public charity sponsors a project that requires non-profit status. Typically, a non-profit set up thru Fiscal Sponsorship takes less than 4 weeks to get approved and less that $400 to set up. Thru Fiscal Sponsorship, the non-profit should have the facility to do anything it could as an independent non-profit. Fiscal Sponsorship is a awesome way to start a non-profit and allows the business to do non-profit work with 501c3 standing without all the hassle or cost of beginning an independent non-profit. In addition, most Fiscal Sponsors take care of the accounting, banking and back office services as well as providing training and 100% support. The steps are:
1. Find a Fiscal Sponsor that may sponsor the non-profit
2. Fill out their application which is usually short
As the sponsor most times takes care of the rest, once the 501c3 application is filled out that's all there is to it. There's generally a large number of amenities the sponsor includes so be sure to take advantage of all of them.
As you can see, starting a nonprofit does not have to be troublesome to work out the steps. The steps are fairly straightforward, its compiling the information that is the hard part. Above all, find professionals and organizations that will give you direction, information, and support for minimum costs. The help in getting a nonprofit started shouldn't cost thousands and should be straight forward.
Many constantly search the internet hunting for all of the steps to create a non-profit, while simutaneously expecting to find an affordable way. There is usually two ways to make a non profit for doing charitable non profit work. First is by forming an independent 501c3 non profit and the second's thru Fiscal Sponsorship. Each ways of forming a non profit work fine, however I think more individuals enjoy running the Fiscally Sponsored non profit. A Fiscally Sponsored non profit has little documentation or cost to get started and no 501c3 application. The process to start each is explained below.
Independent 501c3 Application
The steps to form an independent 501c3 are not as long as they are difficult. Creating an independent non-profit isn't inexpensive and can run over $1000 in just the costs to file the 501c3 application with the state in which the non-profit is incorporating and the IRS. Sadly, there is no way round the incorporation fees and the filing costs to the IRS. Nevertheless you do not necessarily need to pay somebody to help you do do this. The steps are:
1. Incorporate a non-profit corporation in the state you you will work in
2. Create Bylaws in which to govern your corporation
2. Apply for tax exempt standing by filling out and filing the IRS Form 1023 (501c3 application)
3. Sign up for an EIN number
4. Make an application for a business license
5. Open a checking account once the non profit company is established
That is truly all there is to it. I will be able to warn you that the IRS FORM 1023, which some call the 501c3 applicaition is long and somewhat tough to fill out. You might need to consult an expert and pay a fair fee for help to get this 501c3 application completed. Once the IRS FORM 1023 is filed with the IRS it can take many months until accepted.
No 501c3 Application
However, Fiscal Sponsorship is clearly a simpler route since there is no 501c3 application. Fiscal Sponsorship is a formal arrangement in which a 501c3 public charity sponsors a project that requires non-profit status. Typically, a non-profit set up thru Fiscal Sponsorship takes less than 4 weeks to get approved and less that $400 to set up. Thru Fiscal Sponsorship, the non-profit should have the facility to do anything it could as an independent non-profit. Fiscal Sponsorship is a awesome way to start a non-profit and allows the business to do non-profit work with 501c3 standing without all the hassle or cost of beginning an independent non-profit. In addition, most Fiscal Sponsors take care of the accounting, banking and back office services as well as providing training and 100% support. The steps are:
1. Find a Fiscal Sponsor that may sponsor the non-profit
2. Fill out their application which is usually short
As the sponsor most times takes care of the rest, once the 501c3 application is filled out that's all there is to it. There's generally a large number of amenities the sponsor includes so be sure to take advantage of all of them.
As you can see, starting a nonprofit does not have to be troublesome to work out the steps. The steps are fairly straightforward, its compiling the information that is the hard part. Above all, find professionals and organizations that will give you direction, information, and support for minimum costs. The help in getting a nonprofit started shouldn't cost thousands and should be straight forward.
About the Author:
To find out more about the 501c3 application and fiscal sponsorship Click Here ---->> http://SimpleNonprofit.com Scott Michael Ringo, an entrepreneur, is understood worldwide as the nonprofit Guru and expert fundraiser as he helps others simply start and fund non profit organizations all around the globe. By his work with nonprofit organizations around the world he helps individuals start and run successful nonprofits. He is a legacy builder and will help you build your non profit legacy.
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