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 make an independent 501c3 are not as long as they are tough. Creating an independent non profit isn't inexpensive and can run over $1000 in just the fees to file the 501c3 application with the state in which the non profit is incorporating and the IRS. Sadly, there's no way round the incorporation charges and the filing charges to the IRS. However, you do not necessarily need to pay somebody to help you do do this. The steps are:
1. Incorporate a nonprofit business in the state you are going to do business 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. Make an application for an EIN number
4. Apply for a business license
5. Open a checking account once the non-profit corporation is established
That is really all there is to it. I will advise that the IRS FORM 1023, which some call the 501c3 applicaition is exceedingly long and moderately difficult to fill out. You might want to consult an expert and pay a fair fee for aid in getting this 501c3 application completed. Once the IRS FORM 1023 is filed with the IRS it can take many months until accepted.
No 501c3 Application
But Fiscal Sponsorship is undeniably a less complicated 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. Usually a non profit set up thru Fiscal Sponsorship takes less than 4 weeks to get up and running and less that $400 to launch. Thru Fiscal Sponsorship, the non profit should have the ability to do anything it might as an independent non profit. Fiscal Sponsorship is a good way to start a non profit and allows the business to do non profit work with 501c3 standing without all the trouble 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 generally short
Because the sponsor typically looks after everything else, once the 501c3 application is filled out that is all there is to it. There is usually a large amount of comforts the sponsor includes so make sure to apply every one 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 make an independent 501c3 are not as long as they are tough. Creating an independent non profit isn't inexpensive and can run over $1000 in just the fees to file the 501c3 application with the state in which the non profit is incorporating and the IRS. Sadly, there's no way round the incorporation charges and the filing charges to the IRS. However, you do not necessarily need to pay somebody to help you do do this. The steps are:
1. Incorporate a nonprofit business in the state you are going to do business 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. Make an application for an EIN number
4. Apply for a business license
5. Open a checking account once the non-profit corporation is established
That is really all there is to it. I will advise that the IRS FORM 1023, which some call the 501c3 applicaition is exceedingly long and moderately difficult to fill out. You might want to consult an expert and pay a fair fee for aid in getting this 501c3 application completed. Once the IRS FORM 1023 is filed with the IRS it can take many months until accepted.
No 501c3 Application
But Fiscal Sponsorship is undeniably a less complicated 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. Usually a non profit set up thru Fiscal Sponsorship takes less than 4 weeks to get up and running and less that $400 to launch. Thru Fiscal Sponsorship, the non profit should have the ability to do anything it might as an independent non profit. Fiscal Sponsorship is a good way to start a non profit and allows the business to do non profit work with 501c3 standing without all the trouble 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 generally short
Because the sponsor typically looks after everything else, once the 501c3 application is filled out that is all there is to it. There is usually a large amount of comforts the sponsor includes so make sure to apply every one 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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