What legal steps do I need to take to start a nonprofit organization in Pennsylvania?
To start a nonprofit organization in Pennsylvania, you need to follow these legal steps:
- Choose a name for your organization: The name should not have been taken by any other entity in the state of Pennsylvania. You can check the availability of the name on the Pennsylvania Department of State website.
- Formulate your mission statement: Clearly define your nonprofit's purpose, goals, and activities that you want to undertake.
- Draft your articles of incorporation: Pennsylvania requires that nonprofits file Articles of Incorporation with the Department of State. This document should contain specific language and provisions necessary to obtain tax-exempt status. The Pennsylvania Department of State provides a standard form that can be used.
- Appoint Board of Directors: At least three directors are required in Pennsylvania. They are responsible for controlling the affairs and property of the nonprofit. They also manage the nonprofit's business and are held accountable for its actions.
- Apply for an Employer Identification Number (EIN): This is required for all entities, including nonprofits. It is issued by the Internal Revenue Service and is used to identify the organization when filing tax returns.
- Apply for 501(c)(3) tax-exempt status: This is necessary if you want your nonprofit to be tax-exempt. Once your Articles of Incorporation are filed, you can apply for 501(c)(3) status with the IRS. The process can take several months and requires detailed documentation of your nonprofit's activities and finances.
- Obtain necessary licenses and permits: Depending on the nature of your nonprofit's activities, you may need other licenses and permits from local and state government agencies.
- Register with the Pennsylvania Bureau of Charitable Organizations: All nonprofit organizations that solicit charitable donations in Pennsylvania must register with this bureau. The registration process involves submitting annual financial reports and other documents.
Possible limitations or exceptions to the above advice may arise in the case of special circumstances, such as if your nonprofit wants to engage in political activities or if it is a religious organization. In such cases, it is advisable to seek guidance from a licensed attorney who is familiar with Pennsylvania nonprofit law.
It's important to note that this advice should not be considered a substitute for legal advice from an attorney, and that the information provided above is for informational purposes only.