Follow these procedures to establish a charity in Connecticut and get 501(c)(3) status:
Step 1: Give Your Connecticut Nonprofit a Name
Step 2: Select Your Registered Agent; Step 3: Choose Your Board Members & Officers
Adopt Bylaws and a Conflict of Interest Policy in Step 4
Step 5: Submit a Certificate of Incorporation for a Nonstock Corporation.
Step 6: Obtain an EIN
Step 7: Apply for 501(c)(3) status (3)
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It is simple to establish a 501(c)(3) non-profit organisation in Connecticut.
To establish a 501(c)(3) tax-exempt nonprofit organisation in Connecticut, you must first establish a nonprofit under Connecticut law and then apply to the IRS for 501(c)(3) status.
Step 1: Give Your Connecticut Nonprofit a Name
The first and most crucial step in establishing your nonprofit company is deciding on a name. Make sure your name meets Connecticut naming regulations and is readily searchable by prospective members and contributors.
1. Follow the naming conventions:
Your organization’s name must be distinct from that of other firms in Connecticut.
An organisational designation, such as “Inc.”, “Ltd.”, “Incorporated,” or “Company,” must be included in the name.
2. Does the name exist in Connecticut? Do a name search on the State of Connecticut Website to ensure that the name you choose isn’t already used.
3. Is the URL accessible? We propose that you investigate if your company’s name is accessible as a web domain. Even if you don’t intend to create a company website right away, you may wish to purchase the URL to prevent others from doing so.
Step 2: Select a Connecticut Registered Agent.
A Connecticut registered agent must be designated by your charity.
What exactly is a Registered Agent? A registered agent is a person or corporate organisation that accepts vital legal papers on your behalf. Consider your registered agent to be your company’s point of contact with the state.
Who is eligible to be a Registered Agent? A registered agent must be a Connecticut person or a company, such as a registered agent service, that is permitted to do business in Connecticut. You may choose someone from your organisation, even yourself.
Step 3: Choose your Directors and Officers
A board of directors is made up of an organization’s directors. This board of directors is in charge of managing the nonprofit’s activities.
Officers are the president, secretary, and other members of a nonprofit who have specific roles and authority.
Your Connecticut nonprofit’s organisational structure MUST include:
At least three directors who are not connected to one another
The president
A secretarial assistant
Step 4 Adopt Bylaws and a Conflict of Interest Policy
Your organisation must have the following two papers in order to apply for 501(c)(3) status:
Bylaws
Policy regarding conflicts of interest
What exactly are bylaws? Bylaws are the guidelines that outline the nonprofit’s operational processes.
What is the definition of a Conflict of Interest Policy? A Conflict of Interest Policy is a set of guidelines put in place to guarantee that any decisions made by the board of directors or officials benefit the organisation rather than individual members.
Step 5: Submit the Connecticut Nonstock Certificate of Incorporation to the Secretary of State.
You must submit a Nonstock Certificate of Incorporation with the State of Connecticut to register your organisation.
To guarantee that your organisation is qualified to qualify for 501(c)(3) status, you must expressly say the following in the Certificate of Incorporation:
1. Function:
To be eligible for 501(c)(3) status, the organization’s purpose must be expressly confined to one or more of the following:
Charitable, religious, scientific, educational, literary, and other organisations promoting national/international amateur sports competition, preventing animal/child maltreatment, and testing for public safety
2. Decomposition:
You must indicate exactly what the organization’s assets will be used for and what will happen to the assets if the organisation is disbanded.
To be qualified for 501(c)(3) status, your organization’s assets must only be utilised for purposes authorised by Section 501(c) (3).
Section 5 of this sample IRS filing offers an illustration of these 501(c)(3) eligibility conditions.
Step 6: Obtain an EIN
What exactly is an EIN? The federal government uses an Employer Identification Number (EIN) or Federal Tax Identification Number (FTIN) to identify a company organisation. It is effectively the company’s social security number.
Why do I need an EIN? An EIN is necessary for the following activities:
To establish a commercial bank account for the firm
In terms of federal and state taxation
To recruit workers for the firm
Step 7: Apply for 501(c)(3) Status Prior to applying for 501(c)(3) status, a charity must,
Elect at least three independent directors. File the Nonstock Certificate of Incorporation with the relevant conditions (As covered in Step 5)
Adopt the bylaws as well as the conflict of interest policy.
Do you have an EIN?
Once these four qualifications have been completed, your organisation may file Form-1023 online to petition for 501(c)(3) tax-exempt status.
If your application is granted, the IRS will issue you a letter confirming that your organisation is tax-exempt under Section 501(c) (3).