Starting a nonprofit organization in Tennessee can be a fulfilling venture that allows you to make a positive impact on your community. However, before you can begin working towards your charitable goals, you need to navigate the process of registering your nonprofit organization with the state. In this step-by-step guide, we will outline the key procedures and requirements for registering a nonprofit organization in Tennessee.
Table of Contents
Step 1: Determine Your Mission and Structure
The first step in establishing a nonprofit organization is to clearly define your mission and identify the cause or community you aim to serve. It is essential to have a well-defined purpose and specific goals to guide your organization’s activities.
Additionally, you must determine the legal structure of your nonprofit. Common options include an unincorporated association, a trust, or a nonprofit corporation. A nonprofit corporation is the most popular choice due to the liability protection it offers to directors and officers.
Step 2: Choose a Name
Selecting an appropriate and unique name for your nonprofit is crucial. Your organization’s name should reflect its mission and values while complying with Tennessee state laws. Before finalizing your choice, conduct a search on the Tennessee Secretary of State’s website to ensure your desired name is not already in use by another entity.
Step 3: Draft Bylaws
Bylaws serve as the internal operating rules for your nonprofit organization. These rules govern the structure, decision-making processes, and day-to-day operations. Consult with legal professionals or nonprofit experts to ensure your bylaws comply with Tennessee laws and effectively support your organization’s goals.
Step 4: Form a Board of Directors
A nonprofit organization requires a board of directors to provide governance, strategic guidance, and oversight. The board should consist of individuals who share your passion for the cause and possess relevant skills and expertise. In Tennessee, a minimum of three directors is required, and they must be at least 18 years old.
Step 5: File Articles of Incorporation
To establish your nonprofit corporation in Tennessee, you need to file Articles of Incorporation with the Tennessee Secretary of State. The articles typically include the organization’s name, purpose, duration, registered agent, and initial board of directors. You can file the articles online or submit a paper form along with the required filing fee.
Step 6: Obtain an Employer Identification Number (EIN)
An Employer Identification Number (EIN) is necessary for tax purposes, banking, and hiring employees. You can obtain an EIN by completing an online application on the Internal Revenue Service (IRS) website or by submitting Form SS-4 via mail or fax.
Step 7: Apply for State and Federal Tax Exemptions
To qualify for tax-exempt status, you must apply to both the state of Tennessee and the IRS. For state tax exemption, file an Application for Sales and Use Tax Exemption with the Tennessee Department of Revenue. To obtain federal tax-exempt status, submit Form 1023 (for larger organizations) or Form 1023-EZ (for smaller organizations) to the IRS.
Step 8: Register for Charitable Solicitations
If your nonprofit organization plans to solicit donations in Tennessee, you must register with the Division of Charitable Solicitations and Gaming (DCSG). The registration process involves completing the required forms and paying the applicable fees. Failure to register may result in penalties and legal consequences.
WE CAN HELP
Registering a nonprofit organization in Tennessee involves several essential steps, from defining your mission and structure to obtaining tax exemptions and registering for charitable solicitations. By following this step-by-step guide and seeking professional guidance when needed, you can successfully establish your nonprofit organization and embark on a journey to make a positive difference in your community. Remember to stay compliant with state and federal regulations to ensure the ongoing success and effectiveness of your nonprofit.