Nonprofit Registration — Formation and Ongoing Requirements for Charitable Entities

Registering a nonprofit in the U.S. can be complex and time-consuming. It involves multiple steps, such as creating bylaws, filing Articles of Incorporation, and obtaining an Employer Identification Number (EIN).

After incorporation, many nonprofits apply for tax-exempt status to gain federal and state tax benefits. Furthermore, if your nonprofit intends to solicit funds, most states require you to complete a charitable registration process beforehand.

The exact requirements for nonprofits often differ by location, and regulatory obligations become more complex when operating in multiple states. As such, many entities outsource their registration to experts like Harbor Compliance, who offer tailored services to make the process seamless.

This article will discuss the nonprofit registration process, from incorporation to ongoing requirements. We’ll also show how Harbor Compliance’s solutions can save time, reduce stress, and enable you to focus on meeting your entity’s objectives.

What Does the Nonprofit Organization Registration Entail?

The nonprofit registration process encompasses everything you need to do to legally establish and operate your entity while adhering to state-imposed regulations. From the initial formation filings to ongoing obligations, this process ensures you avoid penalties and maintain public trust in your charitable organization.

While the exact registration requirements vary slightly depending on the state in which your nonprofit operates, the process typically includes core components. These include:

• Formation requirements, such as filing Articles of Incorporation and creating bylaws
• Applying for tax-exempt status
• Completing and renewing the charitable registration process before soliciting donations

Since these requirements differ slightly by jurisdiction, it’s crucial to understand the specific regulations applicable in your state and ensure all filings are completed accurately and on time.

Formation Requirements for Nonprofit Organizations in the United States

To start a nonprofit in the U.S., you must fulfill specific formation requirements, such as:

1. Creating bylaws
2. Filing Articles of Incorporation
3. Obtaining an EIN

1. Creating Bylaws

Nonprofit bylaws outline the internal structure and rules in your organization. Typically, the document includes the following information:

• Roles and responsibilities of officers and directors
• How frequently meetings will be held
• The decision-making process your entity will follow
• Provisions for membership

If your nonprofit intends to file for tax exemption, the Internal Revenue Service (IRS) typically requires you to include a copy of your entity’s bylaws with your application.

2. Filing Articles of Incorporation

Articles of Incorporation are a critical document that nonprofits must file with the secretary of state or another designated regulatory authority to legally establish their operations in a specific jurisdiction. The form often requires basic information about your organization, such as:

• Entity’s legal name
• Principal place of business
• Registered agent’s name and address

3. Obtaining an EIN

An Employer Identification Number (EIN) is a federal tax ID issued by the IRS. This nonprofit tax identification number is essential for filing taxes, hiring employees, and administering certain trusts and estates.

Before filing for an EIN, you must first form a nonprofit entity with your state. Failing to complete this step can delay the processing of your EIN application.

Filing for the 501(c) Tax Exemption

Forming a nonprofit organization doesn’t automatically grant it tax-exempt status. While certain nonprofits, such as churches, synagogues, mosques, temples, and charities with gross receipts not exceeding $5,000 annually, may be automatically considered tax-exempt, most organizations must formally apply for recognition of exemption with the IRS.

To qualify for tax exemption, your nonprofit must be formed for exempt purposes and cannot be operated for the benefit of private individuals or entities.

If you meet these eligibility requirements, you must file Form 1023 or 1023-EZ with the IRS. The Form 1023-EZ is a simplified version of this application, available only to organizations that meet the following criteria:

• Annual gross receipts not exceeding $50,000
• Mailing address within the U.S.
• Formation under the U.S. law

Entities who do not meet the Form 1023-EZ eligibility criteria are expected to apply using Form 1023, which is much longer and has a higher filing fee—$600 for Form 1023 compared to $275 for Form 1023-EZ.

The Information Required in the Recognition for Tax Exemption Application

Regardless of whether you use Form 1023 or 1023-EZ to apply for tax-exempt status, the IRS requires some essential information from your organization, which typically includes:

• Legal name and mailing address
• Incorporation date and state of formation
• EIN and bylaws
• Copy of the Articles of Incorporation
• Current and projected financial statements (including your nonprofit’s source of funding)
• Names and addresses of the board of directors and officers in the charity organization

Additionally, timing matters when filing for tax exemption. If you submit your application within 27 months of your nonprofit’s legal formation, the IRS will backdate your tax-exempt status to your formation date. However, if you file after this period, your tax-exempt status will be effective from the date you submit your application.

The State-Level Charitable Registration Process

If your nonprofit intends to solicit funds, you could be required to complete the charitable registration process, depending on the state you operate and where you solicit donations.

This process is currently mandatory in 41 jurisdictions across the U.S. and typically must be completed before any solicitation efforts begin. Furthermore, solicitation is often considered to have occurred even if you do not receive funds from the effort.

While most nonprofits involved in fundraising are required to complete this process, certain organizations are usually exempt, such as:

• Schools
• Religious organizations
• Nonprofits who are soliciting from their members (provided funding is not a criterion for membership)

However, since most nonprofits do not fall under these categories and often aim to solicit from the general public, they must adhere to the charitable registration laws in their respective states.

How To Register a Charity Organization

The requirements for charitable registration vary slightly depending on the state from which your nonprofit plans to solicit funds. Generally, you must provide one or more of the following during the registration process:

1. The IRS letter of determination confirming your tax-exempt status
2. Your annual financial report, often the IRS Form 990
3. A list of officers and directors in your firm

These documents are submitted online or via mail alongside a registration application requesting basic information about your organization, such as its name, location, and registered agent. Typically, the application is filed with the designated regulatory authority in your jurisdiction, such as the secretary of state.

It’s important to note that the initial application is just the beginning. Most states require nonprofits to renew their registration annually by submitting an updated application form and financial report.

Even if your nonprofit qualifies for an exemption from charitable registration, additional obligations may apply. Typically, exempt entities must file an application for exemption outlining how they meet the exemption criteria. This exemption application often requires annual renewal as well.

Failing to adhere to the charitable registration requirements can have serious consequences, including fines, civil or criminal actions against officers or directors, loss of tax-exempt status, damaging negative publicity, or revocation of solicitation rights.

Risks Associated With Self-Managing the Nonprofit Registration Process

Establishing a nonprofit and maintaining compliance involves navigating complex tasks, from drafting your bylaws and obtaining an EIN to filing Articles of Incorporation and completing charitable registration.

Handling this entire process in-house can be overwhelming for many organizations, especially when resources are already stretched thin by the demands of fulfilling their charitable mission with limited staff and volunteers.

Additionally, errors or missed steps in the process can lead to significant consequences, such as delays in application approval, penalties, and even fines. Given these challenges, many nonprofits find it beneficial to seek professional assistance.

Experts like Harbor Compliance can manage the registration process and ensure all filings are submitted accurately and on time. This will enable your organization to focus on its charitable mission and effectively serve the community.

Harbor Compliance—Your Trusted Partner Providing Comprehensive Nonprofit Registration Solutions

Charitable organizations need a partner capable of supporting them during and after the registration process while scaling services as they grow. Harbor Compliance excels in this role, providing comprehensive solutions tailored to nonprofit registration and ongoing obligations.

Harbor Compliance is a trusted provider with years of experience managing tens of thousands of registrations annually. Our expertise will ensure your nonprofit is formed accurately and adheres to regulatory requirements.

For starters, we offer a Nonprofit Formation Service, where we assist with filing your Articles of Incorporation and even help apply for tax-exempt status with the IRS. Additionally, we can handle the application process for your Employer Identification Number (EIN), which is necessary when requesting a confirmation of tax exemption.

Above all, Harbor Compliance provides a Charitable Registration Service that takes the burden of charitable registration off your shoulders. With our help, you can fundraise confidently, knowing all registrations and renewals are handled professionally.

Since acquiring Labyrinth Inc., the largest provider of charitable registration in the U.S., we have supported over 60% of the registrations held by organizations operating in at least 38 states.

Our services extend beyond nonprofit and charitable registration to include:

• Registered Agent Service —With local offices across the U.S., we can act as your registered agent, enabling us to receive and forward legal correspondence on your entity’s behalf.
• Foreign Qualification Service —When expanding operations into other states, we streamline the process to ensure you adhere to the requirements in new jurisdictions.

How To Order Harbor Compliance’s Nonprofit Registration Service

At Harbor Compliance, we specialize in providing tailored services for charitable organizations. If you’d like to partner with us and order our nonprofit formation service, you can do so by following these steps:

1. Visit Harbor Compliance’s Nonprofit Formation Service page.
2. Scroll to Nonprofit Incorporation.
3. Select Learn more.
4. Provide your contact details.
5. Submit the online form.

Additionally, if your nonprofit would be soliciting funds and you require our assistance with the charitable registration process, you can order our service using these steps:

1. Visit Harbor Compliance’s Charitable Registration Service page.
2. Select Contact Us.
3. Fill out the online form with your contact details.
4. Submit your order.

Harbor Compliance also offers comprehensive white papers on charitable solicitation registration compliance and navigating the complexities of charitable registration that you can download for free.

Harbor Compliance’s Additional Services

In addition to assisting with nonprofit registration and facilitating foreign qualification during expansion, Harbor Compliance offers various services to help organizations meet their filing and regulatory obligations. The table below provides an overview of these additional services:

Service Category	Service
Entity lifecycle management	LLC formation Incorporation Amendment Name reservation Doing Business As (DBA) Publishing Reinstatement Dissolution and withdrawal
Tax registration	Payroll tax registration Sales and use tax registration
Business licensing support	General business licenses Industry permits for sectors like engineering and construction
Document filing and retrieval	Annual report Initial report Certificate of good standing Certified copies Drop-off filing

Nonprofit Registration FAQs

This section will answer some frequently asked questions about the nonprofit registration process. To learn more, visit our Information Center.

Navigating the Nonprofit Registration Process With Harbor Compliance

Registering and maintaining a nonprofit involves navigating multiple steps, including filing Articles of Incorporation, securing an EIN, and completing the charitable registration process. Keeping track of these obligations can be overwhelming and cause errors and missteps, leading to more severe consequences. As such, it is advisable to outsource to a provider that offers comprehensive solutions and multistate support to nonprofits looking to expand.

Harbor Compliance can support your charity organization, from initial filings to renewing charitable registrations. Order our Charitable Registration Service and focus on meeting your nonprofit’s objectives while we handle the complexities of compliance.

Use our free Harbor Compliance Score™ to assess your organization’s standing with regulatory requirements and contact us to inquire about additional services you may need. Afterward, you can schedule a demo session of our proprietary Software Suite to explore our practical and unique modules. Want to learn more about charitable registration in different states? Find more guides in the table below: