Starting a nonprofit in California

The decision to create a nonprofit organization is noble, and the effort can be very rewarding. There are a few things that should be considered before moving forward; and if you decide to, you may wish to seek the assistance of a professional company to ensure it is done correctly.

Is your organization necessary?

The desire to help others is admirable, but you should ask yourself if a new organization is the best way to go about doing so. Sometimes it is more helpful to volunteer at an existing organization than to create a new one. If you're uncertain, consider asking similar ones in your area if they would benefit from having another nonprofit to partner with.

Don't be discouraged if it turns out a new organization isn't the best option. Your work as a volunteer is always appreciated.

Moving forward

If you've decided to move forward in creating your foundation, there are a few steps that must be taken in order to do so:

1. Choose a name. Your organization's name must not be misleading or too similar to an existing company according to the California Secretary of State. You may check through California's name availability search.
2. Appoint a Board of Directors. Less than half of these directors may receive pay, be related to one another, or be related to a paid director.
3. Incorporate. You'll need to file articles of incorporation (code) and have a copy of your company's bylaws onsite (code); you can do this yourself, but you may find it easier to let an experienced company do it for you.
4. Apply for a Federal Employer Identification Number (EIN). This may be done online for both the IRS and the State of California.
5. Apply for tax-exemption. This means becoming recognized as a 501(c)(3) by the IRS and filing a Form FTB 3500A with the State of California Franchise Tax Board. This is another step that you may easier if done by an experienced company.

More in-depth guides may be found via Cal Nonprofits and the Digital Media Law Project.

Now what?

Now that you're nonprofit is up and running, you'll want to look into fundraising and into getting the word out there. A website is a great way to provide information to a lot of people, and having marketing collateral with your logo on it to pass out at events and to possible sponsors helps increase the visibility of your organization.

Author Bio: The writer is an expert in the field of start a nonprofit organization with focus on Government grants.

CharityNet USA offers nonprofit consulting services towards starting a nonprofit or charity.