Navigating the Process to Become a Nonprofit

You’ve given it a lot of thought. You’re ready to take on the application process:

• File for incorporation with the state. This identifies you as a legal nonprofit entity oper­ating within the Commonwealth of Kentucky.

• File for an Employer Identification Number (EIN). This is a unique nine-digit ID number that the IRS assigns to entities operating in the United States.

• Apply for federal 501(c)(3) status. Complete and submit IRS Form 1023 (or Form 1023-EZ) to receive nonprofit status from the federal government.
  

Resources

• Articles of Incorporation for Kentucky: Note that the template provided by the Kentucky Secretary of State does not meet IRS requirements for nonprofit articles of incorporation, so you should use it only as a guide. In addition to the statements in this template, you must also supply statements about your corporate purpose, avoiding inurement (benefit­ting people imper­mis­sibly), lobbying, adherence to mission, and where assets will go upon dissolution. For examples of these statements, see an IRS sample of articles of incorporation. CNPE strongly encourages you to get legal help before filing your articles with the Kentucky Secretary of State.
  
• IRS Form SS-4 Application for Employer Identification Number (EIN) in a PDF format you can complete on screen; here is the online version, which will be faster.
  
• IRS Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code. This can take 2 to 8 months for the IRS to process. If approved, you will get a “determination letter,” which is very important.
  
• IRS Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code; this form, for “small” nonprofits (as defined by the IRS) must be filed online; see if you qualify
  
• Video: Forming a Nonprofit

Note: CNPE does not provide legal or financial advice. Before taking action to create or fund a nonprofit, CNPE urges you to work with an attorney, CPA, or other professional.