Starting a 501(c)(3) Nonprofit Organization in California.

 Steps to organize a 501(c)(3) non-profit organization in California.

With the right team and support, starting a 501(c)(3) non-profit organization in California can be one of the most rewarding accomplishments. Before starting your own nonprofit organization, make sure there are no other already established similar organizations in your local area. If another exists, it may be helpful to join hands and utilize the existing support and resources.

1. Name Your Organization:

Make sure that your organization name is available, the legal name of your nonprofit corporation cannot already exist in other organizations registered in the state.

2. Choose a California nonprofit corporation structure:

• Public benefit corporations - those seeking IRS exemptions 501(c)(3) and/or similar California state tax exemptions. 

3. Formation of Members - Recruiting Incorporators and Directors:

Recruiting directors 

• Minimum: 1.

• Qualifications: None. No residency or membership requirement.

• Term: 1 year, 4 year maximum - 6 year maximum if corporation has 0 members.

Recruiting officers

• Elected by the board of directors.

• Two or more offices may be held by the same individual.

4. Prepare and File Articles of Incorporation, Initial Report:

Your organization’s articles of incorporation officiate the start of your non-profit.

After filing, must file an initial report.

5. Obtain an Employer Identification Number (EIN):

Unique, nine-digit number assigned by the IRS to identify your nonprofit. You will use your EIN to open up a bank account, apply for the 501(c)(3) status, and return tax returns to the IRS, annually.

6. Apply for 501(c)(3):

Obtaining tax exemption comes with many benefits, such as being able to apply for grants and growing your charitable organization while being exempt from IRS income tax.

Completing the federal exemption application is much more simple, and easier, with the guidance of a professional. A typical 501(c)(3) application takes over 100 hours to complete - by IRS estimates.

7. Register for Charitable Solicitation (Fundraising)

Laws may differ from state to state, but most states (including California) require nonprofit organizations soliciting donations to report donations on an annual basis. 

8. Overview

Sources:

Foundation Group. Trust Foundation Group to Help You Start Your California Nonprofit. Accessed 2021. https://www.501c3.org/state-nonprofit-guide/how-to-start-a-nonprofit-in-california/

Harbor Compliance. Start Your California Nonprofit. Accessed 2021. https://www.harborcompliance.com/information/how-to-start-a-non-profit-organization-in-california