How To Incorporate a Non-Profit Organization

While a non-profit organization has its advantages (such as tax exemptions or limited liability), forming a corporation from your non-profit organization may be a good move if this can further the goals and mission of your organization.

Under the Internal Revenue Code of the United States, to be tax-exempt and non-profit means to be dedicated to a certain cause such as scientific, literary, testing for public safety, fostering of national or international amateur sports, prevention of cruelty to animals or children, religious, educational, or charitable.

Be it a partnership or personal incorporation, it does have an edge and more long-term possibility than a non-profit.

Read on the tips, reminders and steps on how you can incorporate your non-profit organization.

1. The organization's mission and vision should be clearly defined. By moving to a corporation, your new and bigger goals should not be completely different from the original purpose of your group.
2. Documents. All pertinent documents about your incorporation should be checked and have gone through your lawyer's review. With this, you can have legal backup and avoid any legal case in the future. Your lawyer can also guide you with the legal changes particularly about taxes, an area your non-profit organization was once alien to.
3. Hire an accountant. From a non-profit to a corporation means major changes in your accounting, thus, hiring an accountant to do these changes in your financial bottom-line is a crucial step.
4. Contact your local mail office. Since you will be dealing with a lot of mail for your cause, a dedicated mail box should help you right into organizing them and receiving and sending them in a timely fashion too.
5. Insurance. Since you will now work with many ‘assets' you have to guard them and you may want to have them insured. Hire a registered agent for your insurance needs.
6. Choose a bank to handle your accounts. This should be a bank that can provide the service and understands the needs of a small and new business such as yours.
7. State tax exemption. If you want to apply for state tax exemption, you can choose to do so pending submission of all required documents.
8. Develop your articles of incorporation. There are templates and other forms that you can fill-up (although they may not be that easy) to be able to come up with your own.

Websites of your local state are very helpful when it comes to these procedures. Be sure to check their website or contact their office, as these procedures vary per state (local websites such as that of California and Texas have comprehensive information about these procedures). And since you will be operating in their state and would need their support sooner or later, it might be better to communicate and introduce yourself so you can get the necessary and official guidance in this organizational change.

For your papers to be approved, and to have them approved in your time-frame, make sure you have completed paper work and coordinated with all necessary offices. This ensures your transition to be as smooth and as productive as it can be.