Starting a nonprofit can help your organization become more official, receive donations, apply for grants, and build stronger partnerships. However, becoming a nonprofit also comes with responsibilities, paperwork, and rules that you need to follow.
Before Starting: Is a Nonprofit Right for Your Organization?
Not every club or project needs to become a nonprofit. A nonprofit is usually a good option if your organization:
Has a clear mission that helps the community
Plans to continue operating for multiple years
Wants to apply for grants or accept donations
Wants to partner with schools, businesses, or government organizations
Has a team of people willing to manage the organization
Step 1: Incorporate Your Organization
The first official step is creating your nonprofit corporation with the California Secretary of State.
What you'll do:
Create a BizFile account.
File your Articles of Incorporation.
Wait for approval.
Once approved, file your Statement of Information before the deadline.
Official Resources
Apply for an Employer Identification Number (EIN) through the IRS.
Think of an EIN as your organization's Social Security number.
You'll need it to:
Open a bank account
Apply for tax exemption
File official paperwork
Official Resource
Step 3: Create Your Organization's Rules
Every nonprofit should create a few basic documents.
These include:
Bylaws (how your organization operates)
Board Resolution (approval for important actions like opening a bank account)
Helpful templates can be found online by searching:
"Nonprofit bylaws template"
"Board resolution template"
Keep all important paperwork together in a folder or binder.
This should include:
Articles of Incorporation
EIN confirmation letter
Statement of Information
Bylaws
Board resolutions
Future tax documents
Having everything organized will save you time later.
Once you have your EIN and incorporation documents, open a bank account in your nonprofit's name.
Banks usually ask for:
EIN
Articles of Incorporation
Bylaws
Board resolution
Government-issued ID
Many national banks and credit unions offer nonprofit checking accounts, so compare options before choosing one.
To become tax-exempt, apply to the IRS for 501(c)(3) status.
Most small youth organizations use Form 1023-EZ, which is a simplified application.
Once approved, your nonprofit can:
Accept tax-deductible donations
Apply for many grants
Access nonprofit discounts and free programs
Official Resources
After receiving your IRS approval, complete California's tax exemption process.
Common forms include:
FTB Form 3500A (for organizations that already have IRS approval)
CT-1 (required for many charitable organizations that raise donations)
Official Resources
Once your nonprofit is approved, you can begin building your public presence.
Some next steps include:
Buy a .org domain name.
Build a website.
Create organization email addresses.
Apply for Google Workspace for Nonprofits.
Apply for grants.
Begin fundraising.
Helpful Resources:
Google Workspace for Nonprofits
After becoming a nonprofit, you'll need to stay up to date with annual requirements.
Remember to:
File required IRS tax forms each year.
Keep financial records.
Hold board meetings.
Save meeting minutes.
File any required California forms on time.
Missing deadlines can lead to penalties or even loss of your nonprofit status.
☐ Decide if becoming a nonprofit is the right choice
☐ File Articles of Incorporation
☐ File your Statement of Information
☐ Apply for an EIN
☐ Write your bylaws
☐ Organize your documents
☐ Open a nonprofit bank account
☐ Apply for IRS 501(c)(3) status
☐ Complete California tax exemption paperwork
☐ Create your website and begin growing your organization