Start Your Kentucky Nonprofit

Harbor Compliance makes starting your nonprofit easy.
Your specialist manages all of the paperwork, letting you focus on your mission.
Get your 501(c)(3) approved - starting at $1,395 plus filing fees.

Start My Guaranteed 501(c)(3) Nonprofit

How to Start Your KentuckyNonprofit Guide

How to Start a Nonprofit in Kentucky

Welcome to our Kentucky nonprofit resource guide! This free guide will help you understand how to start your nonprofit in Kentucky and become 501(c)(3) tax exempt. You will find step-by-step instructions and get answers to common questions like "what does it cost?" and "how many board members do I need?".

If you're starting out with little or no funds, gaining professional assistance is rarely an option. In that case, you may want to commit to researching the process and filing government applications on your own. This route is not for the faint of heart but is certainly achievable if you work diligently. The following step-by-step guide should help you as you undertake this process.

1 Confirm a New Nonprofit is Necessary

As you begin, take a moment to consider if you should start a new non-profit organization. According to the National Center for Charitable Statistics, there were over 16,000 nonprofit organizations in Kentucky in 2013. To decide if a new nonprofit is necessary...

  • Research if an organization already exists in your area that serves your cause. By working together you avoid diluting the effect of fundraising dollars and volunteer hours available in your geography.
  • Consider fiscal sponsorship, in which an umbrella 501(c) organization incubates your charitable nonprofit. Fiscal sponsors permit your cause to receive tax-deductible donations and often handle administrative paperwork.
2 Understand the Benefits of Incorporating

This guide focuses on starting a nonprofit corporation, the traditional nonprofit legal structure. This legal structure has a few key benefits. First and foremost, the nonprofit corporation limits the liability of the organization's officers and directors. Second, the nonprofit corporation is familiar to donors and grant makers. Lastly, nonprofit corporations meet a wide range of IRS eligibility requirements, in particular those relating to the 501(c)(3) application.

3 Check Name Availability

The legal name of your nonprofit corporation may not conflict with any other registered name. Check availability of your desired name by conducting a name search.

Name Search:
Kentucky FastTrack Business Organization Search
Name Reservation:
End with the word "corporation," "company," or "limited" or the abbreviation "Corp.," "Inc.," "Co.," or "Ltd." or words or abbreviations of like import in another language, provided, however, that if a nonprofit corporation's name includes the word "company" or the abbreviation "Co.," it may not be immediately preceded by the word "and" or the abbreviation "&". KRS §273.177
4 Recruit Incorporators and/or Initial Directors
  • Identify the incorporators. These individuals will execute the articles of incorporation and submit them to the state. Kentucky only requires a minimum of one incorporator (KRS §273.243).
  • Recruit initial directors for your nonprofit board of directors. In Kentucky, naming the initial directors in the articles of incorporation is required KRS §273.247. A minimum of three directors are required and the number of directors must be set in the bylaws, except the initial number which is set in the articles (KRS §273.211).
  • Nonprofits often begin working with us before they incorporate and select a board. We help you understand state and IRS requirements as you select your board members.
5 Appoint a Registered Agent

Identify the nonprofit’s Kentucky registered agent. A registered agent is a legal appointee who is responsible for receiving legal notices for your nonprofit. Your registered agent must be physically located in Kentucky and maintain an office that is open during regular business hours.

We provide a convenient service to act as your Kentucky registered agent. As part of that service, our local office in Richmond, KY receives your legal documents and sends you notifications. You view your documents in your secure online account. Registered agent is included in our nonprofit formation service or you can sign up for this service separately.

Free Email Series

Learn the basics of starting a 501(c)(3) nonprofit with our

10-Day Nonprofit Startup Bootcamp

Sign Up Now

Welcome to Our Community

We're committed to publishing free informational resources such as this how-to guide. Our resources have been shared by important industry organizations including:

Fast Facts

Below is an overview of the paperwork, cost, and time to start an Kentucky nonprofit.

  • Form NAI: Non-profit Corporation Articles of Incorporation
  • Bylaws
  • IRS Form SS-4: Obtain an EIN
  • IRS Form 1023: 501(c) Tax Exempt Application
  • IRS Determination Letter
  • Form 10A100: Kentucky Tax Registration Application
  • Form 51A125: Application for Purchase Exemption - Sales and Use Tax
  • URS Charitable Registration, if applicable
  • Kentucky Charitable Registration

  • Incorporation: $8
  • 501(c): $400 or $850 IRS fee

  • Incorporation: ~3-5 business days by mail or online. While you wait if you file in-person.
  • 501(c): 2 weeks to 3 months

Learn By Video

6 File Kentucky Nonprofit Articles of Incorporation

File articles of incorporation to create your non-profit corporation.

Agency:Kentucky Secretary of State

Form NAI: Non-profit Corporation Articles of Incorporation

Filing Method:

Mail, in-person, or online

State Fee:



~3-5 business days by mail or online. While you wait if you file in-person.


Kentucky Revised Statutes - Chapter 273

Adding 501(c) provisions into your articles

The IRS requires specific language in the articles of incorporation to qualify for 501(c)(3) federal tax exemption. These provisions are not always included in state articles of incorporation templates. Refer to IRS Pub 557 for guidance and sample language.

7 Establish Organization Records

"Each corporation shall keep correct and complete books and records of account..." (KRS §273.233. Your filed articles of incorporation is the first document for your nonprofit corporate records. Your corporation will generate many other official records such as bylaws, meeting minutes, and your EIN.

Office supplies intended for a nonprofit corporation will help you stay organized and save time. Optionally, get a nonprofit records kit.

Draft bylaws which is the governing document for the nonprofit. The bylaws may contain any provisions for the regulation and management of the affairs of a corporation not inconsistent with law or the articles of incorporation (KRS §273.191). You will review and ratify the bylaws at your first board of directors meeting.

The Board should create and adopt a conflict of interest policy. This document is submitted to the IRS at the time they apply for 501(c)(3) tax exemption.

8 Hold Organizational Meeting of the Directors

Hold the first meeting of the board of directors or incorporators (KRS §273.257). At this meeting, the nonprofit should approve the bylaws, elect additional directors, appoint officers, and approve initial resolutions such as opening a company bank account. Keep minutes of this meeting.

9 Get a Federal Employer Identification Number (EIN)

Your nonprofit must obtain an EIN regardless of whether it will hire employees.

Agency:Internal Revenue Service (IRS)

IRS Form SS-4


IRS Pub 1635: Understanding Your EIN

Filing Method:

Mail, phone, fax, or online

IRS Fee:



Immediately online or by phone. 4 business days by fax. 4-5 weeks by mail.


The IRS website is only available during certain hours. Print your EIN before closing your session.

10 Get Kentucky State Tax Identification Numbers/Accounts

Register with the Kentucky Department of Revenue within 30 days of incorporation for applicable tax accounts

Submit to:
Kentucky Department of Revenue
Form 10A100: Kentucky Tax Registration Application
Filing Method:
Mail or online
~5-10 business days

You may also need to file other Kentucky Registration Applications.

Harbor's responsiveness and realistic understanding gave our organization a great start.
JohnThe Alumni Society of San Sebastian
Harbor helped me understand what's needed and why, and they pointed out the details that I didn't bother to pay attention to! They took care of the whole thing.
11 Apply for 501(c)

Applying for 501(c) tax exemption is often the most complex and time-consuming steps in setting up a nonprofit. It is also one of the most important, as obtaining a tax exemption is what is enables an organization to successfully raise funds, apply for grants, be exempt from IRS income tax, and enjoy a variety of other benefits exclusively available to nonprofits.

501(c) is the chapter of the Internal Revenue Code that regulates nonprofit organizations. Most nonprofits are 501(c)(3)s, including charities and foundations. There are a few forms used to apply for federal tax exemption. 501(c)(3) nonprofits apply using Form 1023 or Form 1023-EZ. Not all organizations however are eligible to file the streamlined Form 1023-EZ. Other types of nonprofits, including 501(c)(4)s and 501(c)(6)s, apply using Form 1024.

Seeking the help of a professional with this step is common. Choosing the right form to file is just one consideration. A great deal of expertise, time, and preparation goes into creating a successful application. The IRS estimates over 100 hours are spent on researching and preparing the application. If you're looking for professional assistance, check out our formation services to help you with your 501(c) application and the rest of the process. Our nonprofit specialists will help you from start to finish.

Agency:Internal Revenue Service (IRS)

IRS Form 1023IRS Form 1023-EZ, or IRS Form 1024


IRS Instructions for Form 1023IRS Instructions for Form 1023-EZ, or IRS Instructions for Form 1024.  Also see guidance IRS Pub 557: Tax-Exempt Status for Your Organization.

Filing method:


IRS Fee:

$275, $400, or $850, depending on form and annual gross receipts


1023-EZ average: <1 month. 1023 average: 3-6 months.

The IRS will return a Determination Letter which officially recognized your exemption.

12 Apply for Kentucky Tax Exemption(s)

Your nonprofit is automatically exempt from Kentucky corporate income tax when you receive IRS income tax exemption.

More information:
Kentucky Department of Revenue

Your nonprofit may be able to obtain exemption from Kentucky sales and use tax. To apply:

Submit to:
Kentucky Department of Revenue
Form 51A125: Application for Purchase Exemption - Sales and Use Tax
Filing method:
Include a copy of your articles of incorporation and IRS Determination Letter.
13 Register for Charitable Solicitation / Fundraising

Before soliciting donations or hiring professionals solicitors, you must register in each state where you will raise funds.

To file in Kentucky:

Agency:Kentucky Attorney General - Charities

All IRS tax-exempt nonprofits must register. Kentucky exempts:

  1. Religious institutions
  2. Educational institutions
  3. Membership organizations
  4. PTAs and student groups

Check the law for the full list of exemptions and exemption criteria.


There is no prescribed form. File by mail:

  • A copy of the most recent IRS 990 (or URS, if not available)
  • A copy of the IRS Determination Letter
  • A copy of the By-laws
  • A copy of the Articles of Incorporation
Filing method:


State Fee:



Charitable organizations must register with the Kentucky Attorney General prior to soliciting. 


Kentucky Revised Statutes Ann. §§ 367.650, 367.657 et seq.



Online fundraising:

Kentucky follows the Charleston Principles regarding when your nonprofit needs to register due to online fundraising.

Accepts URS:Yes

To fundraise nationally or online, please see our Fundraising Compliance Guide. Our services manage your initial, renewal, and exemption filings in every state.

14 Obtain Other Business Licenses & Permits

To run your business legally, you must obtain applicable licenses and permits. The easiest way to navigate the wide range of federal, state, and local requirements is to search by your business type and locality using the Small Business Administration Business License & Permit look-up tool.

Kentucky nonprofits who wish to conduct bingo, raffles, and other charitable gaming must register with the Kentucky Public Protection Cabinet - Department of Charitable Gaming by filing Form CG-1: Kentucky Application for License for Charitable Organization ($25 state fee).

* Ongoing Filings to Maintain Your Nonprofit

Once you have registered your nonprofit per the steps listed above, you will need to maintain compliance with all of the government agencies. Staying current with the IRS and state requirements is an ongoing responsibility. Continue reading our Kentucky nonprofit compliance guide to learn more!

Tax-Exempt in 2 Weeks!

Download the case study of how our client, Reform It Now, obtained 501(c)(3) tax exemption in only two weeks using the new IRS Form 1023-EZ!

From filing the 1023EZ on August 1st to receipt of the determination letter on August 14th is, in my humble opinion, simply breathtaking and I dare say, ONLY Harbor Compliance could have achieved that.
Dr. Bob A.Reform It Now, Inc.

Start Your Nonprofit with The Experts!

  • Guaranteed 501(c)(3) approval.
    We have a 100% success rate in forming nonprofits of all types.
  • Save 100+ hours preparing government forms.
    Your specialist customizes each of your applications for you.
  • Start fundraising with confidence!
    Gain access to grants and donations exclusive to 501(c)(3) nonprofits.
Start My Guaranteed 501(c)(3) Nonprofit
This page was last fact-checked March 29, 2016.