The first step in forming a 501(c)(3) charity in Minnesota is to file your Articles of Incorporation. This article will help you through the nine procedures necessary to submit the Articles of Incorporation in Minnesota and formally create a nonprofit.
To organise a domestic nonprofit corporation in Minnesota, use the Minnesota Nonprofit Corporation Articles of Incorporation form or, if you intend to apply for 501(c)(3) status, prepare your own formation document using this template. This tutorial covers every step you need to follow to effectively design a 501(c)(3)-friendly formation document and get started on the path to founding a Minnesota charity.
Step 1: Enter the Name of Your Nonprofit
Step 8: Provide your incorporator information.
Step 9: Documents for Formation
The first step in creating your Minnesota Articles of Incorporation is to include the name of your nonprofit company. If you haven’t yet decided on a name for your organisation, these are the prerequisites for naming a nonprofit in Minnesota:
You may register for a trademark for your organisation after you have confirmed that no one else has previously trademarked your selected name.
While a registered agent is not necessary in Minnesota to submit the Articles of Incorporation, you must give an address for your nonprofit’s registered office.
Follow these standards when stating your registered office address:
Describe the goal of founding your nonprofit company in article three. This part must additionally contain the following statement in addition to that purpose:
“This corporation is organised solely for charitable, religious, and educational purposes as specified in Section 501(c)(3) of the Internal Revenue Code, including distributions to organisations that qualify as exempt organisations under Section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code.”
To be qualified for 501(c)(3) status, your nonprofit corporation’s mission must incorporate one or more of the following characteristics:
In article four, ensure that your nonprofit company meets all of the Internal Revenue Service’s exemption standards (IRS). You may do this by inserting the following needed wording in this section:
“At all times, the following shall function as conditions regulating the corporation’s operations and activities:
1. No part of the corporation’s net earnings shall inure to the benefit of, or be distributable to, its members, trustees, officers, or other private individuals, except that the corporation shall be authorised and empowered to pay reasonable compensation for services rendered and to make payments and distributions in furtherance of the purpose stated in the purpose clause hereof.
2. No substantial part of the corporation’s activities shall consist of carrying on propaganda or otherwise attempting to influence legislation, or any initiative or referendum before the public, and the corporation shall not participate in, or intervene in, any political campaign on behalf of, or in opposition to, any candidate for public office (including by publication or distribution of statements).
3. Notwithstanding any other provisions of this document, the corporation shall not engage in any other activities that are not permitted to be conducted by an organisation exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code or corresponding section of any future tax code, or by an organisation whose contributions are deductible under Section 170(c)(2) of the Internal Revenue Code or corresponding section of any future tax code.”
Confirm whether or not voting members will be included in your nonprofit company. If your organisation will not have voting members, just declare that it will not have members.
In addition, to finish this formation paperwork and qualify for 501(c)(3) status, you must designate at least three directors who will serve on your inaugural board of directors.
Follow these guidelines while creating your nonprofit’s inaugural board of directors:
Include the following language in article six, which will relieve your directors of personal accountability as long as the organisation is operated legally and reasonably.
“No member, officer, or director of this corporation will be personally responsible for any of this corporation’s debts or obligations of any kind, nor shall any of the members’, officers’, or directors’ property be subject to payment of this company’s debts or obligations.”
Most nonprofit companies are formed as eternal entities with no expiration date in mind. If your organisation has a particular termination date, include it in article seven.
You must also state how your nonprofit’s assets will be allocated if it is dissolved in this section. Dissolution assets must only be distributed for authorised, tax-exempt uses. Refer to the sixth section of the IRS’ proposed wording for corporations and organisations for further information on the requirements of dissolution and 501(c)(3) status.
Any individual who takes part in the completion and filing of the Articles of Incorporation is considered an incorporator. In article eight, just one incorporator must sign this formation paper and state their name and address.
In Minnesota, you may submit your Articles of Incorporation online, via mail, or in person.