Non-For-Profit Organization Development: Ensuring Tax Exemption Status

Each year, thousands of non-for profit organization are created. As part of the creation process, the founder of the non-for-profit must ensure specific government filings are made to establish a legal identity on which individuals, corporations and grantors can offer financial support. As the founder of a non-for-profit organization, understanding the steps required, will ensure a more efficient establishment of the non-for-profit and, in return, resulting in more expeditious funding.

When beginning a non-for-profit organization, the first step is to create the organization name. Choosing a non-for-profit organization name is not a process to be taken lightly. Use words or phrases which describe the mission or goal of the non-for-profit in a snapshot company name. Once created, the first step in the creation of a non-for-profit organization is to file the appropriate business names on file with the county clerk's office. For a nominal fee, the non-for-profit organization is established in name only and an assumed name document will be given to the founder of the non-for-profit organization.

With the assumed name document, the next step in establishing the legal status of the non-for-profit organization, is to obtain an employer identification number. Contact the Internal Revenue Service, by phone or online and complete Form SS-4 which will establish the Employer Identification Number of the non-for-profit organization at no cost to the organization or the founder.