Starting out in the right way is essential to an organization's success. You will need to have the right structure in place to facilitate the organization's mission now and as it grows. We can help you set up your new organization and help you apply for tax exemption.
- Forming a new organization:
- You will need to select the right organizational structure to achieve your organization's goals. Most nonprofits will incorporate (become a corporation), but for some organizations it may make more sense to be an unincorporated association or even a trust.
- After choosing a structure, you will need to the appropriate documents: Articles of Incorporation and Bylaws or Articles of Association or a trust document. The documents must comply with Michigan law and must also contain certain provisions to satisfy the IRS if you are applying for tax exemption.
- Applying for tax exempt status with the IRS:
- We can guide your organization and its leaders through completion of Form 1023, or the new 1023-EZ Form, or 1024, depending on which is most appropriate. We will help you with all aspects of seeking recognition of tax exemption and assisting with any queries from the Internal Revenue Service (IRS).
- We can advise new private foundations regarding application for recognition of exemption and the special rules that private foundations must follow.
- Moving Forward:
- We can advise your new 501(c)(3) organizations about record keeping to show it is publicly supported.
- We can help organizations obtain and maintain exemption from real property taxes.
- We can guide organizations through the process of fundraising registration with the State of Michigan and other State agencies that regulate charities.
If you are thinking about starting a new nonprofit organization, call our office at (734) 995-2500 to speak to N. Holowicki or B. Magill.