Non-Profit Formation In North Carolina
Non-profit organizations are governed by a complex system of laws and regulations. It is imperative that these mandates are carefully adhered to when the non-profit is formed. At Carolina Estate Planning, we focus on providing our clients with representation that allows them to develop and operate a non-profit organization that meets their goals.
Steps to Non-Profit Formation In North Carolina
As stated above, the steps involved in forming a non-profit organization are intricate and involve a thorough knowledge of governing laws and regulations. Below is a brief overview of the steps involved in the process. For information that is more tailored to your organization’s specific needs, contact our firm today.
Name Your Organization
The first (and perhaps most fun) part is choosing a name for your non-profit. Choose a name that is easy to remember and spell. If the name you are considering has multiple words, see if the acronym is “catchy” and memorable. Finally, once you have decided on a name, check the North Carolina Secretary of State’s website to make sure the name you chose has not already been taken by another company.
Decide On Leadership
Part of forming a non-profit is deciding who will fill key positions. For example, you will need at least one incorporator, three directors, and a registered agent.
- Incorporator: Person legally responsible for formation of the non-profit and signs the Articles of Incorporation.
- Director: Oversees that the non-profit operates in a way that will enable it to meet its long-term goals. Also ensures financial viability and fundraising practices.
- Registered Agent: Person or business that is listed with the Secretary of State as the proper party to serve in case of legal action.
Prepare & File Articles Of Incorporation
Articles of Incorporation are filed with the North Carolina Secretary of State. It is the initial guiding document of the non-profit that confirms the organization’s existence. The Articles of Incorporation must be customized and include certain language to meet tax-exempt status with the IRS.
Prepare Governing By-Laws
By-laws are the operating manual for your non-profit. Their terms must align with the Articles of Incorporation and include procedures for holding meetings and elections of officials.
Hold A Meeting With The Directors
At the initial meeting with the directors several actions which must be taken, including:
- Approve by-laws
- Election of directors
- Appointment of officers
- Approve initial transactions, i.e. opening a bank account
Obtain Identifications & Licenses
There are certain ID’s, licenses, and statuses you will need to operate as a non-profit organization. They include:
- Employer Identification Number (EIN)
- 501(c)(3) federal tax exemption status
- State tax exemption status
- Charitable solicitation registration
Contact Our Non-Profit Formation Attorney Today
My name is Jeff Bloomfield, and if you are considering creating a non-profit organization, I encourage you to reach out to me to discuss your goals. I am ready and able to answer any questions and address any concerns you may have. My phone number is 336-221-4457 or you can reach me via our contact page.