How to Start A Nonprofit
Register with the State of Colorado as a nonprofit
The first step is reserving your organization name and business type with the State of Colorado. With this filing, you must attach the proper IRS, State and Nonprofit Industry Standard clauses when completing the application. Not doing this in the initial step can cost you time and money.SOLUTION: I can help you set this up
Obtain a Nonprofit IRS EIN number
The IRS requires that your organization name match the state nonprofit registration status. Also, you must obtain a nonprofit EIN, not a different business type.SOLUTION: I can help you register this correctly.
Complete the 1023 Application
This is a 28 page document with 100 pages of instructions. The IRS says that an organization who has not filled this application out will expend 100 hours of time and at least 12 months. Fortunately, you have 27 months to complete the application. However, if information is not provided correctly you risk delaying the approval or being declined completely. On average, the IRS declines 40% of all applications, approves with questions/delays 40% of applications and only approves 20% of all applications.SOLUTION: I can help you through the long process of the application by making it easier to apply. Ninety percent (90%) of applications I have submitted are approved without additional questions and/or delays. I provide all the documents and guide you through the process.
UNDERSTANDING NONPROFIT INDUSTRY STANDARDS
There are many facets of running a nonprofit that you must know about as you move forward including Organizational Management, Board Development, and Capacity Building.SOLUTION: I help you understand these terms and how to set up and improve your organization. I do this as part of the 1023 Application process and can assist other organizations who need this type of consulting work.
Fundraising
Prior to receiving your 501c3 application you should be fundraising. Although you can’t promise tax exempt the IRS will back date the tax deductions to the date you filed with the state as a nonprofit IF they approve your 501c3 application.
Once you receive your 501c3 Tax Exempt status you can apply for grants.
SOLUTION: I assist organizations in developing initial fundraising program ideas. After the tax exempt status is obtained I can help your organization with the Colorado Common Grant Application and Strategic Grant Writing Plan.
Once you receive your 501c3 Tax Exempt status you can apply for grants.
SOLUTION: I assist organizations in developing initial fundraising program ideas. After the tax exempt status is obtained I can help your organization with the Colorado Common Grant Application and Strategic Grant Writing Plan.
Keeping Your Nonprofit Operating
Annual IRS Filings
The IRS requires the 990 be filed annually. If your organization has less than $50,000 in gross receipts, you can file for a 990N. Otherwise, there are other 990 forms you may have to file.SOLUTION: I can assist with filing a 990N or a 990EZ. I work with local accountants who specialize in nonprofit organizations that can assist with other tax needs including the regular 990 form.
Annual State Filings
The state requires you file the Charitable Solicitations Registrations by May 15 each year.The state requires an annual report be filed for your organization.
SOLUTION: I assist organizations in completing these annual filings.
State Tax Exempt Certificate
The state allows you to obtain a Tax Exempt Certificate so you don’t have to pay taxes for purchases for your organization.SOLUTION: I can help with this paperwork and filing.
Bingo and Raffle License
State law is very specific on conducting any games of chance in Colorado. You must be a nonprofit membership organization for at least five years before applying for this and then you must attend classes and have a licensed games manager that has been with your organization for at least 6 months.SOLUTION: There are other rules required by the state and I can assist your organization in understanding these laws.
