How To Start A Non Profit Organization In Delaware

The irs does not allow public charities seeking 501 c 3 status to have only a single director as the board.

How to start a non profit organization in delaware. Any corporation granted an exemption by the irs as a non profit organization under section 501 c is exempt from delaware corporate income tax. To become a nonprofit corporation in delaware you can use the state of delaware sample certificate of incorporation for an exempt corporation as a guide to draft your own certificate of incorporation. If your plan to start a nonprofit includes filing for 501 c 3 status then the flexibility of governance allowed by delaware will not apply. The state of delaware is home to more than 5 500 nonprofit organizations including more than 3 000 501 c 3 public charities. Once a nonprofit organization has been created and has obtained tax exemption and other necessary qualifications these statuses must be maintained.

Additionally non profit corporations are exempt from obtaining a delaware business license and paying the accompanying gross receipts tax on the sales of most goods and services. In order to qualify for 501 c 3 status the organization s purpose must explicitly be limited to one or more of the following. Explore learn about existing services in the geographic and subject areas in which you plan to work review alternatives to creating a new nonprofit such as. Before you start a new nonprofit make sure you have identified an unmet need in your community and know that there are not any existing organizations serving your cause. These nonprofit organizations employ nearly 12 percent of the state s workforce and generate upwards of 6 billion in annual revenue.

To start a nonprofit corporation in delaware you must file a nonprofit certificate of incorporation with the delaware division of corporations. Then you apply for tax exempt status from the irs. Below is a list of the ongoing compliance filing requirements for a nonprofit tax exempt organization in delaware. You can submit your certificate online or by mail. Delaware certificate of incorporation.

5 best states to start a nonprofit 1. Starting a nonprofit organization in delaware checklist phase 1. O volunteering or working for an existing organization. When you re starting a non profit in delaware there are a number of factors to consider especially if you re forming a 501 c 3 organization. Creating a mission statement you re creating a non profit because you want to give back to your community but you must still meet certain requirements to protect yourself and to ensure that you re meeting your organization s goals.

To create a 501 c 3 tax exempt organization first you need to form a nonprofit corporation under delaware state law.