Follow these procedures to establish a charity in New York and get 501(c)(3) status:
Step 1: Give Your New York Nonprofit a Name
Step 2: Select a Registered Agent
Step 3: Select a Nonprofit Type
Step 4: Appoint Board Members and Officers
Step 5 Adopt Bylaws and a Conflict of Interest Policy
Step 6: Submit your Certificate of Incorporation.
Step 7: Obtain an EIN
Step 8: Apply for 501(c)(3) status (3)
It is simple to establish a 501(c)(3) non-profit organisation in New York.
To establish a 501(c)(3) tax-exempt nonprofit organisation in New York, you must first establish a nonprofit in the state and then apply to the IRS for 501(c)(3) status.
Step 1: Give Your New York Nonprofit a Name
The first and most crucial step in establishing your nonprofit company is deciding on a name. Make sure your name meets New York naming regulations and is readily searchable by prospective members and contributors.
Observe the naming guidelines:
Include an organisational designation, such as “Incorporated,” “Inc.”, “Ltd.”, or “Company.”
Not to be dishonest in any manner or to imply that your organisation was formed for a purpose other than that specified in your Certificate of Incorporation.
Include no statements or phrases that would give the impression that your organisation is operating as an agent of the United States or the State of New York.
Include none of the following words or phrases:
a physician or a lawyer (unless you obtain special permission)
Union, labour, council, industrial group (when referring to worker’s rights, unless you attach a state board of standards and appeals permission)
blind or disabled (unless you attach an approval from the state department of social services)
exchange (unless you attach approval from the attorney general)
school, elementary, secondary, kindergarten, prekindergarten, preschool, nursery school, museum, history, historical society, arboretum, library, college, university, or other limited words (unless you attach approval from the state commissioner of education)
Furthermore, the name of your charity cannot include profane or derogatory terms or phrases, or imply that your organisation will participate in illegal conduct.
More information regarding naming a charity in New York may be found in the official rules of the New York State Senate.
2. Does the name exist in New York? Make sure the name you choose isn’t already in use by doing a company entity search on the website of the New York State Division of Corporations.
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 New York Registered Agent.
By default, the Secretary of State in New York serves as the statutory agent for service of process (registered agent) for all New York organisations.
You may also designate a registered agent for your New York organisation. When you finish your company’s formation paperwork, you will be offered this choice.
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 New York resident or a company, such as a registered agent service, that is permitted to do business in New York. You may choose someone from your organisation, even yourself.
Step 3: Determine Your Organizational Type
Before starting, you must decide on the corporate structure for your firm and secure any necessary permissions. You must choose one of the following options:
Religious Corporation – Religious companies operating in New York are subject to certain laws and restrictions. The Consolidated Laws of New York include more information regarding forming a religious organisation in New York.
Nonreligious Organization
Consent or Approval Required – If the goal of your charity is connected to any of the items listed in the graph below, you must acquire permission from the relevant governing authority. This permission must be submitted together with your Certificate of Incorporation application.
Step 4: 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 nonprofit in New York MUST have the following organisational structure:
At least three independent directors A president A minimum of one vice president
A secretarial assistant
A treasury official
Step 5 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 6: Submit the Certificate of Incorporation to the State of New York.
You must submit the Certificate of Incorporation with the State of New York to register your nonprofit.
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 7: Obtain an EIN
What exactly is an EIN? The Employer Identification Number (EIN), also known as the Federal Tax Identification Number (FTIN), is used to identify a commercial organisation, such as your nonprofit company. It is basically your 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
How can I get an EIN? After founding the firm, the business owner obtains an EIN from the IRS (free of charge). This may be done both online and by mail.
Step 8: 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 Certificate of Incorporation with the relevant conditions (As covered in Step 6)
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).