Follow these procedures to establish a charity in North Dakota and get 501(c)(3) status:
To establish a 501(c)(3) tax-exempt nonprofit organisation in North Dakota, you must first establish a nonprofit under North Dakota law and then apply to the IRS for 501(c)(3) status.
The first and most crucial step in establishing your nonprofit company is deciding on a name. Make sure your name meets North Dakota naming regulations and is readily searchable by prospective members and contributors.
1. Follow the naming conventions:
2. Does the name exist in North Dakota? Do a name search on the State of North Dakota’s 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.
A North Dakota 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 North Dakota person or an organisation, such as a registered agent service, that is permitted to do business in North Dakota. You may choose someone from your organisation, even yourself.
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 North Dakota nonprofit’s organisational structure MUST include:
Your organisation must have the following two papers in order to apply for 501(c)(3) status:
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.
NOTE: The nonprofit must adopt its bylaws and conflict of interest policy during its first organisational meeting, when the directors and officers are formally selected.
You must submit the Articles of Incorporation with the State of North Dakota to register your nonprofit.
To guarantee that your organisation is qualified to qualify for 501(c)(3) status, you must expressly declare the following in the Articles 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:
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.
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:
If your application is granted, the IRS will issue you a letter confirming that your organisation is tax-exempt under Section 501(c) (3).