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How do I start a nonprofit organization for rescuing cats?
Thank you so much for your desire to rescue cats! Ian provided a great general overview on how to start a nonprofit. As a fellow cat lover, I just wanted to provide a few more pointers that may be helpful for you:Here is the IRS guidance on the language for the nonprofit charter (articles of incorporation/certificate of incorporation): Suggested Language for Corporations and AssociationsWhile it is no where written, you want to aim for at least 3 directors that are not related by blood, marriage, adoption or business. Related directors can greatly lessen the chance of IRS approval, especially if a majority of the board is related.If you have a social security number, you can apply for an EIN online here: EIN Individual Request - Online Application. It is free and should take under 5 minutes.Many states will require you to hold the initial organizational meeting after the corporation is formed, and not before, in order for corporate action to be properly authorized. Check state requirements. There is also often the option of taking corporate action by written consent in lieu of meeting, which might be more convenient for everyone involved.There is also a Form 1023-EZ which is an expedited short form 501(c)(3) application. You should check the worksheet in the 1023-EZ instructions to see if your nonprofit will qualify. Turnaround time is much quicker with the EZ application.The IRS strongly recommends having a conflict of interest policy. The state you form the nonprofit corporation in may also require a conflict of interest policy to be in place (New York is one of them). There is a sample conflict of interest policy in Appendix A of the Form 1023 instructions that may be helpful for you to reference.If your nonprofit will be getting donations from the general public (or government assistance), you may want to make sure to select “public charity” in the Form 1023/1023-EZ. If you don't choose “public charity,” the nonprofit will be classified as a “private foundation,” which is much more highly regulated. Of course, you should take the time to decide what classification will be better for your needs.After you hopefully receive a positive IRS determination letter, make sure you check if your state requires your nonprofit to register as a charity. If so, you'll need to do that.Getting the 501(c)(3) acknowledgement from the IRS exempts the nonprofit from Federal taxes, but not state sales or franchise taxes. Many states will require you to separately request sales tax and corporate franchise tax exemptions. Check with the state tax authority to see what is available.Hope this helps!
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