Timeline and Steps Towards 501(c)3 Incorporation

Incorporating as a 501(c)3 nonprofit organization can be a lengthy and complex process. Below is an outline of the general steps and timeline toward achieving non-profit status. We recommend working with a lawyer to ensure all steps are completed correctly.

1. Develop a mission statement and create a board of directors (takes about 1-2 months)
Your mission statement should clearly outline the purpose and goals of the organization. Once this is done, you will need to create a board of directors, which should consist of at least three individuals who are not related and have no personal or financial conflicts of interest.

2. Choose a name and check availability (about 1-2 weeks)
Choose a name for your organization and check its availability with your state’s business registry.

3. Draft bylaws and apply for incorporation (about 2-4 weeks)
Draft bylaws that outline the organization’s structure, governance, and procedures. Then, file the articles of incorporation with the state where the organization will be headquartered.

4. Obtain an employer identification number (EIN) (about 1-2 weeks)
Apply for an EIN from the IRS. This is a unique identification number that is required for tax purposes.

5. Apply for tax-exempt status (6-12 months)
File Form 1023 or Form 1023-EZ with the IRS to apply for tax-exempt status. The processing time for this application can range from 6-12 months, depending on the complexity of the organization and the backlog of applications at the IRS.

6. Register with state and local authorities (1-2 months)
Register with state and local authorities to comply with any requirements for nonprofit organizations in your area.

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