What are the requirements for starting a non-profit organization in California?
To start a non-profit organization in California, there are several requirements that must be met.
First, the organization must have a specific purpose that qualifies as a charitable, educational, or other non-profitable purpose under California law. This must be clearly stated in the organization's articles of incorporation, which must be filed with the California Secretary of State.
Second, the organization must have at least three directors or trustees, who are responsible for managing the affairs of the organization. These directors must be individuals, not organizations or corporations, and each must be at least 18 years old.
Third, the organization must obtain tax-exempt status from the Internal Revenue Service. To do this, the organization must file an application for exemption, known as Form 1023, with the IRS. The application must include detailed information about the organization's purpose, activities, and financial operations.
Fourth, the organization must comply with various state and federal laws governing non-profit organizations. This includes maintaining accurate financial records, filing annual tax returns, and complying with applicable state and federal employment and labor laws.
There are also several potential limitations or exceptions to consider. For example, certain types of non-profit organizations may require additional licenses or permits to operate in California, such as charitable fundraising permits. Additionally, non-profit organizations are subject to various regulations and requirements under California law, including rules related to conflicts of interest, corporate governance, and non-discrimination.
If you are considering starting a non-profit organization in California, it is important to consult with an experienced attorney for advice and guidance. An attorney can help you navigate the legal requirements and ensure that your organization is properly established and compliant with all applicable laws and regulations.