Obtaining 501(c)(3) status requires careful planning and following detailed instructions.
Nonprofit organizations are vital components of society and offer valuable resources to many individuals. Nonprofits can offer educational assistance, shelter, clothing and food for needy individuals, arts programs and more. Starting a 501(c)(3) nonprofit organization in Wisconsin requires individuals to submit documentation and follow rules on the state and federal levels. Nonprofit organizations benefit from 501(c)(3) status because they are exempt from federal and state income taxes and are able to offer tax benefits to individuals who make contributions. Starting and running a successful nonprofit in Wisconsin requires careful planning and dedication from leaders, staff and volunteers.
Instructions
1. Choose a legal name for your nonprofit corporation. Your nonprofit is required to have a unique name that does not belong to another business. The name of your nonprofit must end with a corporate designator such as "Incorporated," "Corporation," "Company," "Limited" or an abbreviation of those terms.
2. Set up your initial board of directors. The board of directors is responsible for drafting the bylaws, creating the voting procedures for new directors and members and establishing the internal operational functions of your nonprofit. Your nonprofit is required to have at least three directors.
3. Obtain the Articles of Incorporation (Form 102) from the Wisconsin department of financial institutions. Form 102 is the application used for individuals to form a nonprofit organization. You can download and print a copy of the form from its website or pick one up at the physical office of the Wisconsin department of financial institutions.
4. Fill out Form 102 completely with the required information. The information required on the Articles of Incorporation includes the name and legal address of your nonprofit organization, the name of the registered agent, the name and addresses of the initial directors and the purpose for forming the nonprofit. Submit the completed form, an exact copy and the current required filing fee to the Wisconsin department of financial institutions (P.O. Box 7846 Madison, WI 53707-7846).
5. Draft the bylaws for your nonprofit. The bylaws are the rules and regulations that are used to govern the operations of your organization. The bylaws are usually enacted at your first meeting for your nonprofit.
6. Apply for an Employer Identification Number (EIN) on the Internal Revenue Service's website, by phone or by fax. An EIN is similar to a Social Security number for a business. The application is free and the number is received instantly after the application is successfully submitted.
7. Visit the IRS website to obtain Form 1023. This form is used by nonprofits that seek to apply for federal tax-exempt status under Section 501 of the Internal Revenue Code.
8. Fill out Form 1023 completely with the required information. Mail the completed form and the current required filing fee to the IRS (P.O. Box 12192, Covington, KY 41012-0192). You must also submit a copy of your Articles of Incorporation and bylaws with the Form 1023.
9. Submit a completed copy of Form S-103 (CES) to the Wisconsin department of revenue (P.O. Box 8902 Madison, WI 53708-8902) to obtain a Certificate of Exempt Status (CES) number, which exempts nonprofit organizations from sales tax. 501(c)(3) nonprofit organizations will usually qualify for this status. You are also required to send in a copy of your IRS determination letter, Articles of Incorporation, bylaws and an income statement from your nonprofit's most recent accounting period.
10. Submit a completed copy of Form No. 296 and the current required filing fee to the department of regulation & licensing charitable organizations for permission to solicit contributions. You must also send in a copy of your IRS 501(c)(3) determination letter, Articles of Incorporation and a statement detailing how you plan on using the funds. You are only required to register if your solicited contributions will exceed $5,000.
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