A couple posts ago, I took a look at some nonprofit organizations associated with Banshee Reeks. The Friends of Banshee Reeks (the main organization I focused on) wasn't made by a government or conservation agency - it was formed by concerned citizens who wanted to take action to keep their local lands natural. As it turns out, anyone can form a nonprofit as long as you jump through all the right hoops and (probably) fill out the right forms. Let's give it a try!
A quick Google search ("How to start a nonprofit in Virginia") reveals the answers. I personally decided to go with Harbor Compliance's website (linked here - I will refer to this as 'the link above' throughout the rest of this post), as I liked the format of their instructions, but I came across a lot of other sites (mostly law groups) who all have basically the exact same process listed (*any information in the steps below is pulled directly from Harbor Compliance's website). The Process is as follows:
Name your organization - This probably seems pretty obvious, but a name is important. It establishes your brand, and will also be useful in future steps. You can make sure the name you want is both available and meets state requirements by doing a name search with the State Corporation Commission Clerk's Information System (linked here).
Recruit Incorporators and Initial Directors - The Incorporator: person who signs the Articles of Incorporation for your nonprofit (you need at least 1 but can have more) ; Directors: make up the governing body of your nonprofit (identify 3, unrelated individuals).
Appoint a Registered Agent - The registered agent is responsible for receiving legal notices on behalf of the organization. They must be physically located in the state and maintain an office operating on normal business hours.
Prepare and File Articles of Incorporation - This will make the creation of your organization official. You can find this form on the website I've listed above, or probably also with a quick Google search.
Obtain an Employer Identification Number (EIN) - A 9-digit number assigned by the IRS to identify your nonprofit. You will use your EIN to open bank accounts, apply for your 501(c)(3), and submit returns to the IRS. The form for this step can also be found on the website linked (or Google).
Store Nonprofit Records - You will receive official documents for your organization, such as your EIN number, 501(c)(3) status letter, meeting minutes, state secrets, who knows what else. Organizing these documents for safe keeping an ease of access is critical. Organizations can make use of records management software, or a really slick filing cabinet.
Establish Initial Governing Documents and Policies - Bylaws: governing documents for your nonprofit, serving as your organization's operating manual. Also, adopt a conflict of interest policy, this will prevent potential harm to the organization. Once your bylaws and policies have been approved and adopted, safely store them with the rest of your records.
Hold Organizational Meeting of the Board of Directors - Initial meeting agenda: approve bylaws, adopt conflict of interest policy, elect directors, appoint officers, approve any necessary resolutions (ie. opening the orgs bank account). Be sure to record important decisions in meeting minutes (notes).
Get Virginia State Tax Identification Numbers/Accounts - Virginia offers a consolidated state tax registration application for new organizations. Links to necessary forms and filing methods are listed in the link provided above.
Apply for 501(c) - Fill out the appropriate form - let's say we'll do the 501(c)(3). In this case, we need to apply using Form 1023. Again, you can access forms and filing instructions via the website linked above.
Register for Charitable Solicitation (Fundraising) - Registering in your home state allows your organization to solicit donations (must be renewed annually).
Obtain Other Business Licenses & Permits - Running your organization legally means ensuring you've got all the right licenses and permits to operate. You can look up what is necessary to have in your state by going to the Small Business Administration Business License & Permit look-up tool.
And that's it!
Well, there are other things you'll need to do to maintain your proper forms, documents, licenses, and permits, but that's something you can worry about later. For now, pat yourself on the back for taking action to benefit yourself and your community!
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