These are many of the key steps necessary for creating a Georgia nonprofit corporation and obtaining §501(c)(3) tax-exempt status. This list may not be complete and should not be construed as legal advice. Each situation is different and may require additional or different steps. Always consult an attorney to address your particular situation.
- Decide on Name
- Confirm no other corporation in the state is using the name
- Google the name to see if others are using it, which might create trademark issues
- Determine the organization’s purpose and goals; draft a mission statement
- Recruit Initial Directors (assuming no corporate members)
- Minimum 3 directors
- Must be a natural person and at least 18 years old
- Directors do not need to live in Georgia
- Appoint a Registered Agent
- Appointed registered agent must be physically located in the state and maintain an office that is open during regular business hours.
- Prepare and File Articles of Incorporation
- Publish Incorporation
- Must publish notice of incorporation no later than the next business day after filing articles of incorporation.
- File Initial Report
- After filing articles of incorporation, the corporation’s initial report must be filed electronically using the E-corp Secretary of State Website
- Create Official Corporate Minute Book (may be electronic)
- Draft Bylaws
- Bylaws are the governing documents for your nonprofit. They serve as your organization’s operating manual and should be consistent with your articles of incorporation and the law.
- More Information
- Create a Conflict-of-Interest Policy
- A conflict of interest arises when someone in the nonprofit has competing interests and is making choices that could harm the organization. You want a policy in place to prevent this from happening.
- More Information
- Hold Organizational Meeting of the Board of Directors
- This includes reapproving directors, approving bylaws, adopting conflict of interest policy, electing officers, adopting financial policies including who can authorize payments, and determining who can sign for the organization.
- Obtain Other Business Licenses, Registrations, and Permits
- This may include Department of Revenue and Department of Labor registrations.
- More information on business licenses: Does Your Nonprofit Need a Business License?
Obtaining 501(c)(3) Status
- Apply for a Federal Employer Identification Number (Online – Form SS-4)
- If you don’t expect to have greater than $50,000 in income and $250,000 in assets in the first 3 years, then complete Form 1023 EZ Online: https://www.irs.gov/forms-pubs/about-form-1023-ez
- If you do expect to have greater than $50,000 in income and $250,000 in assets in the first 3 years, then complete Form 1023 Online: About Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code | Internal Revenue Service
- Receive 501(c)(3) Determination Letter
Once established, refer to the following resources for information on how to maintain proper compliance on an ongoing basis.
- PBPA Staying Legal Publication: Best Practices for Operating a 501(c)(3) in Georgia
- PBPA Webcast: You Got Your 501c3 Status, Now What?
- PBPA Web Series: Legal Issues for New Nonprofits