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What are the legal requirements for starting a non-profit organization in Illinois?

Picture of Chris Battis By   ·  1 minute read

To start a non-profit organization in Illinois, there are several legal requirements that must be met:

  1. Choose a name for your organization:

    The name should not be similar to an existing organization and should not be misleading.

  2. Choose the type of non-profit organization:

    Illinois recognizes three types of non-profit organizations: charitable, religious, and educational. It's important to choose the type that best fits your organization's goals and purpose.

  3. Draft Articles of Incorporation:

    This legal document outlines the purpose of your organization, its leadership structure, and limitations on liability. Your Articles of Incorporation must also include provisions that meet the requirements of the IRS for 501(c)(3) status, which is required to receive tax-exemptions.

  4. Obtain an Employer Identification Number (EIN):

    Every non-profit organization must have an EIN, which is a unique identifier assigned by the IRS for tax purposes.

  5. File with the Illinois Secretary of State:

    Submit your Articles of Incorporation to the Illinois Secretary of State along with a filing fee.

  6. Apply for Tax Exemption:

    To qualify for tax-exemption, a non-profit organization must apply to the IRS for 501(c)(3) status. The application requires detailed information about the organization's purpose, activities, and finances.

  7. Maintain accurate records:

    Non-profit organizations are required to keep accurate financial and organizational records, including minutes of board meetings and financial statements. These records should be maintained for at least seven years.

It's important to note that the non-profit organization must also comply with all state and federal laws regarding fundraising, lobbying, and other activities. It may be necessary to consult with an attorney or accountant to ensure compliance.

In conclusion, starting a non-profit organization in Illinois requires careful planning and attention to detail. By following the legal requirements and seeking guidance when necessary, your organization can be legally established and on the path to achieving its goals.