Essential steps for starting a California Nonprofit Organization

Islip + Company Sacramento CPA has been a boutique specialist in the field of non-profit accounting, auditing and tax for decades. We understand the issues facing non-profits and we know that each non-profit organization is totally unique. We build custom time-saving solutions to help your non-profit organization run efficiently and steer clear of pitfalls in regulations.

These are some essential steps for starting a California Nonprofit Organization

  • Determine the name of the organization.
  • Determine the organization’s purpose. A clear, concise written mission statement and purpose.
  • File the articles of incorporation with the California Secretary of State.
  • Obtain a federal employer identification number (EIN).
  • File the Statement of Information with the California Secretary of State once approved articles is received.
  • Appoint the board of directors.
  • File the initial registration form with the California Attorney General’s Registry of Charitable Trusts (Charitable Organization Only).
  • Draft the bylaws, conflict of interest policy and whistle blower policy.
  • Apply for federal tax exemption with the Internal Revenue Service (IRS) Form 1023 or 1024.
  • Apply for California tax exemption with the California Franchise Tax Board (FTB) Form 3500.
  • Develop budget for first 3 years.
  • Establish record-keeping system. Organization documents, minutes, financial reports, and other official records must be saved beyond the life of the organization.
  • Establish accounting system.
  • Apply for nonprofit mailing permit from U.S. Postal Service. To enjoy reduced postage rates.
  • Obtain directors’ or officers’ liability insurance.

Please contact Islip + Company Sacramento CPA and Non-profit specialist for assistance should a need arise at your organization.