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

Picture of Chris Battis By   ·  2 minute read

Legal Requirements for Starting a Non-Profit Organization in New York

Starting a non-profit organization in New York requires compliance with a set of legal requirements. These requirements apply to both incorporations and non-incorporations.

Incorporation Requirements

Non-profit organizations can incorporate in New York as a non-profit corporation under the New York Not-For-Profit Corporation Law ("N-PCL"). To incorporate, the following legal requirements must be met:

  1. Naming the Non-Profit: The organization must choose a name that is not already in use and which complies with New York's naming requirements. The name of the non-profit must also contain the words "Incorporated," "Corp.," "Corporation," or "Limited," or an abbreviation of one of these words.
  2. Filing Articles of Incorporation: The organization must file Articles of Incorporation with the New York State Department of State. The Articles of Incorporation must include the name and purpose of the non-profit, the counties in which it operates, and the names and addresses of the Incorporators.
  3. Obtaining Employer Identification Number (EIN): The organization must obtain an EIN from the Internal Revenue Service (IRS). An EIN is used to identify the non-profit for tax purposes.
  4. Drafting Bylaws: The non-profit must have Bylaws that set out the organization's rules and procedures. The Bylaws must include the following elements: the purpose of the non-profit, the duties of officers and board members, the method of selecting officers and board members, the procedures for holding meetings, and the process for amending the Bylaws.
  5. Hiring a Registered Agent: The organization must have a Registered Agent in New York who can receive legal documents on behalf of the non-profit.

Non-Incorporation Requirements

Non-profit organizations that do not incorporate in New York are called unincorporated associations. These organizations are not separate legal entities, and their members are personally liable for the organization's debts and obligations. Non-incorporated non-profits must meet the following legal requirements:

  1. Formation: To create a non-incorporated non-profit organization, two or more people must come together for a common purpose. They must have a mutual understanding of the organization's goals and objectives.
  2. Purpose: The non-profit's purpose must be charitable, educational, literary, religious, or scientific. It cannot be for-profit.
  3. Registration: Non-incorporated non-profits do not need to register with the state, but they must obtain any necessary licenses or permits to carry out their activities.
  4. Bylaws: The non-profit must have Bylaws that set out the organization's rules and procedures. The Bylaws must include the purpose of the non-profit, the duties of officers and board members, the method of selecting officers and board members, the procedures for holding meetings, and the process for amending the Bylaws.

Conclusion

Starting a non-profit organization in New York requires compliance with legal requirements that differ depending on whether the organization chooses to incorporate or not. These legal requirements include filing Articles of Incorporation, obtaining an EIN, drafting Bylaws, and hiring a Registered Agent. Non-incorporated non-profits must meet legal requirements related to formation, purpose, registration, and Bylaws. It is advisable to seek the advice of a licensed attorney to ensure compliance with all applicable legal requirements.