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Roofing invoice example for non-profit organizations

How to form a 501(c) (3), non-profit corporation. A non-profit corporation is purpose-driven, a company whose goal is not to make profit for themselves. Typically, they are an organization that wants to make money in order to help further a social cause or provide a public benefit. Let's get you started on the right path to forming a non-profit corporation in Delaware. (gentle music) If you're not sure what a non-profit is, check out our other video, "What is a non-profit?" linked below. How do you form a non-profit corporation? There are two ways, you can do it yourself or you can hire a service to do it for you. Let's take a look at both options and help you decide how to go about forming your own non-profit corporation. Option one, do it yourself. If you want to save money, you can form a non-profit corporation on your own. Let's take a look at the steps to forming a non-profit corporation on your own. One. Choose and secure your non-profit's name. The name you select for your non-profit will establish its brand. It's the first thing most people will learn about your organization. It's important to pick a name that both aligns with your mission, and follows the rules of naming guidelines in Delaware. You'll need to check Delaware's specific naming requirements, but in general, follow these rules when choosing a name. The name you pick for your organization should not include any words or terms that could be considered grossly offensive or misleading. The name must be distinct from that of any other corporation in Delaware. For more information on what makes a name distinct, check out our other video, "How to name your business in Delaware," linked below. Once you have a name selected, do a name search to make sure it's available in Delaware. After doing a Delaware name search, you'll want to do a domain search to see if your name is available as a URL. Even if you don't plan on making your website today, you may want to secure the URL, so someone else doesn't take it. Two. Appoint a registered agent. The registered agent can be an individual within the company, including yourself or you can hire a professional service authorized to do business in Delaware. They will send and receive legal papers on your behalf. These documents include official correspondence like legal summons and document filings which your registered agent will receive and forward to you. Your registered agent will also help remind you to file the necessary reports. Failure to properly maintain your non-profit can result in fines and dissolution, so this assistance is valuable. Three. Choose your non-profit structure. There are two options in the state of Delaware for non-profit structure, exempt, and nonstock. If you're looking to file for federal tax exemption 501(c)(3) status, you'll want to choose the exempt structure. Otherwise, choose the nonstock structure. Four. Select directors and officers. Your non-profit corporation will be made up of some number of directors and officers. The directors of a non-profit are responsible for overseeing the operations of the organization. Together, they form the board of directors. The power and influence of the directors over the organization comes from them as a board. The directors themselves do not have any authority as individuals. The board typically creates the policies that govern the non-profit. They also oversee management level hiring, such as the company officers. The officers of the non-profit, such as the president, or secretary, are individuals with responsibilities and the authority to execute based on their job description. Together, the officers on the board will come together to make up the organizational structure of your non-profit. An officer may also be on the board of directors and serve both roles, if allowed to do so by the organizational bylaws, which we will discuss later. If your organization plans to apply for 501(c)(3) status for federal tax exemptions, it must elect at least three directors not related to each other, a president and a secretary. Note, that one person can hold multiple offices. Five. File the Certificate of Incorporation for Exempt Corporation. To form a non-profit corporation, you will need to file official papers with Delaware. In Delaware, this is called the Certificate of Incorporation for Exempt Corporation. Some possible information in the Certificate of Incorporation for Exempt Corporation you may have to include is, entity name, registered agent and registered office, management, membership, purpose, additional provisions, incorporator, and execution. For more information on the sections of Delaware's Certificate of Incorporation for Exempt Corporation, check out our page linked below. Six. Operating procedures and house-keeping. Once your non-profit corporation has been formed, you'll want to start getting the structure of it together and determine how your non-profit will be run. Starting with the bylaws and Conflict of Interest policy. Your bylaws are the rules that determine how your organization will be governed and run. You can think about it as a constitution for your non-profit. It makes the rules and priorities clear for everyone involved. In your bylaws, be sure to include how the non-profit will be governed, the roles of directors and officers, how meetings are held, voting procedures, electing officer or directors, how records will be kept and managed, how disputes will be handled, and how bylaws will be added and amended in the future. When you're ready to get started, check out some bylaws templates linked in the description below. The conflict of interest policy are the rules set to ensure that decisions being made for the non-profit are based on what is best for the organization, and not being motivated by what is best for individuals. You'll want to make sure you have a draft of both the bylaws and Conflict of Interest policy before your organizational meeting. We have templates of both bylaws, and conflict of interest policy linked The description below. An organizational meeting is the first official meeting of your non-profit. Some of the things that are discussed in a typical organizational meeting are, taking attendance to show you have a quorum, appointing temporary officers and chairmen, adoption of bylaws, and adoption Conflict of Interest policy. It's important to record minutes of the meeting and have it signed by all attending directors. We have some corporate minutes templates linked below to help you get the ball rolling. After your non-profit has been formed, you'll need to apply for an EIN or Employment Identification Number. An EIN is like a social security number for your non-profit. And it's used for things like filing for 501(c)(3) status, opening a bank account, applying for tax exempt status, and submitting tax returns. For more information on EIN's, check out our other video linked below. Seven. Register with the Delaware Division of Revenue. Although your non-profit will be exempt from the majority of taxes, and holding appropriate business licenses. You still need to register with the Delaware Division of Revenue. You can complete this form online or by mail, we have linked both options below. They offer businesses a consolidated application that will register them with the Office of Workers Compensation, Division of Unemployment Service, and the Division of Revenue. For more information, you can call the Division of Revenue, or visit them at their website linked below. Eight. Apply for 501(c)(3) status, federal tax exemption. What is federal tax exempt status, and why do you want it? When a corporation generates income, that corporation has to pay a federal income tax. As a non-profit, your goal is to generate income that is used to help further a cause, rather than fill the pockets of the company employees. Because of this, the federal government allows that non-profits income not be taxed so that more of the money can go towards the cause that the non-profit is supporting. Before your non-profit can apply for 501(c)(3) status, it must file the Certificate of Incorporation for Exempt Corporation with the required provisions, adopt the bylaws and Conflict of Interest policy, and have an EIN number. In order to file for tax exempt status, most organizations will need to file form 1023, online or by mail, and pay a fee of $600. If your organization's annual gross receipts are below $50,000, then you may be able to file form 1023-EZ with the fee of $275. You can check your eligibility with the link in the description below. Once you have received your 501(c)(3) determination letter from the IRS. You will automatically be exempt from Delaware corporate income tax. Option two. The second way to form a non-profit is to hire a professional service to create your non-profit for you. Hiring a professional service to file your forms and act as your registered agent for the non-profit will cost you an additional 50 to $150. This fee only covers formation of a non-profit corporation. If you wish for the professional service to file for 501(c)(3) status, the cost may go up to as much as $1,700, plus filing fees. However, there are several benefits to working with a pro. A hired registered agent helps with getting your reports filed on time. Helps you stay organized by keeping your business mail separate, and is available at all regular business hours to accept official mail and legal papers on your non-profits behalf. If you want to form an organization or company in Delaware with the purpose being to help a cause, rather than to make a personal profit, a non-profit corporation is the best way to do that. Now you know all the steps to form a non-profit in Delaware. For a more detailed guide, visit our site at StartupSavant.com. Give the video a like if you found it useful, and subscribe if you'd like to see more. If you have questions or encounter any roadblocks, leave a comment below. Good luck in starting your non-profit.