If you’ve decided that a nonprofit is the best way to accomplish your mission, congratulations. That’s a big decision, and one that deserves some careful planning.

When I started a nonprofit, I spent countless hours researching the process, reading IRS guidance, talking with professionals, and trying to piece together how everything fit together. Looking back, there are a few things I’m especially glad I did, along with a few things that surprised me.

This article is the roadmap I wish someone had handed me before I got started. It’s not intended to cover every legal requirement or filing you’ll encounter. Instead, my goal is to give you a realistic picture of what the process looks like, the decisions you’ll need to make along the way, and the lessons I learned that I hope will make your journey a little easier.

As always, this is based on my personal experience and should not be considered legal, tax, or accounting advice. Every state has different requirements, so be sure to consult an attorney or accountant and check with your Secretary of State’s office before making decisions.

Start With Your Mission

Before you file paperwork, I’d encourage you to spend some time defining your mission. The legal steps are important, but they’re much easier when you’re clear about the purpose behind your organization. I’ve written several articles about choosing the right structure and defining your mission, and I’d encourage you to start there if you’re still in the planning stage.

If you’re still working through those questions, I encourage you to read Should You Start a Nonprofit? Maybe. In that article, I share how I decided a nonprofit was the right fit for Still Worth Saving and some of the questions I think everyone should ask before filing a single piece of paperwork.

If you’ve already reached that point, let’s talk about what comes next.

Lay the Foundation of your Mission

One of the biggest things I learned is that filing the paperwork is actually one of the easier parts. The harder work happens before you ever submit an application.

This is the stage where you’re beginning to build the foundation for your organization. Taking a little extra time now to think through and document some of your most important decisions will make everything easier once things start to progress.

At the same time, don’t feel like you have to have every answer before you move forward. As you start to talk with people and take action, your mission will likely become even clearer and may evolve. You may discover better ways to serve the people or causes you care about. That’s not a sign you did something wrong but instead a natural part of building an organization.

The goal in this step isn’t to have a perfect plan. The goal is to have enough clarity to confidently take the next step.

Before I filed anything, I wanted to have a good understanding of:

• The mission and purpose of the organization
• Who I wanted to serve
• How I hoped to fund the mission
• The name I wanted to use
• The people I hoped would serve on my board

Those decisions gave me a solid foundation, but they certainly weren’t the end of the story. I didn’t move on to the next steps knowing exactly what to do or how we would help. Even today, Still Worth Saving continues to grow and evolve as I learn more about where the greatest needs are and how we can make the biggest impact. Knowing when to listen and adjust and knowing when to stay the course are skills you’ll need to develop in order to run an effective organization.

Once those foundational pieces start coming together, the paperwork should become less intimidating because you won’t be trying to create an organization from scratch. You will instead be putting the legal structure around a mission that was already taking shape.

Choosing a Name for your Organization

Choosing a name can feel exciting and overwhelming at the same time. It’s one of the first things people will know about your organization, and hopefully it’s a name you’ll be using for many years to come.

Don’t put too much pressure on yourself to find the “perfect” name. Instead, look for one that clearly reflects your mission, is easy to remember, and gives you room to grow. You may be surprised how many good ideas you come up with before you finally land on the right one.

Keep in mind that unusual spellings, overly common names, and things that are cute but maybe a little too “inside joke” might not be the best choices. 

Before you get too attached to a name, spend a little time making sure it’s actually available. I recommend checking:

• Domain name availability through a registrar like Namecheap
• Social media handles on the platforms you plan to use
• A Google search to see what else may already exist
• The IRS Tax Exempt Organization Search
• The U.S. Trademark database if you think you may eventually trademark your name

I had an idea for a great name and felt very invested before finding out it was taken and in use. If whoever owns the name isn’t really using it then it may be possible to get it, but take time to consider what is most important. A year later and I can’t even remember what that original idea was, and I didn’t spend time trying to chase it down.

Once you do find a name that’s available and that meets the criteria and you are ready to move forward with it, I’d encourage you to purchase the domain name and reserve the social media accounts right away. Even if you’re not ready to build a website or create social media content, they’re relatively inexpensive and you’ll be glad you secured them while you continue building your organization.

Build Your Board

One of the most important decisions you’ll make is choosing your board members. These are the people that will help guide your organization in the coming months and hopefully years.

Every state has different requirements, but most nonprofits need at least a small board of directors to get started. While it may be tempting to simply ask family members or close friends, you’ll need to be strategic. There can be limitations on how many related parties can serve on a board. And while a friend may be a great choice, it’s certainly great to include people you trust, make sure you are clear about the role they can fill and the skills they will bring to your organization.

Look for people who:

• Believe in your mission.
• Bring different skills and perspectives (i.e. fill gaps in your skill set).
• Are willing to ask thoughtful questions.
• Will support your vision while also providing accountability.
• Are excited to help the organization succeed, whether that’s through fundraising, volunteering, networking, or serving in another meaningful way.

You don’t need a board full of experts. You need people you trust who genuinely want to see the mission succeed and are happy to help navigate it with you.

As your organization grows, your board will likely grow and change too. That’s perfectly normal. Focus on finding people who are willing to help you build a strong foundation rather than trying to assemble the “perfect” board from day one.

One more tip: Don’t worry about recruiting someone with an impressive title or who looks good on paper. A person with passion for your mission or who wants to support you, that has a good work ethic and follow through, is way more valuable.

Form Your Nonprofit Corporation

Once you’ve decided a nonprofit is the right structure for your mission and you’ve started building your foundation, it’s time to make it official.

In most states, this means forming a nonprofit corporation through your Secretary of State’s office. Every state has different requirements, so your first step should be reviewing the filing instructions and requirements for your state.

At this point, many people are comfortable taking the DIY approach to save money, and in many cases, that’s perfectly reasonable. There is often no requirement to hire an attorney or other professional. That said, I’ve also learned that getting the right advice early can save you significant time, money, and frustration down the road. Only you can decide where you’re comfortable handling things yourself and where professional guidance is worth the investment.

If you plan to apply for 501(c)(3) status, which is the most common type of tax-exempt nonprofit, pay close attention to the language required in your Articles of Incorporation. Including the appropriate IRS language from the beginning can save you time and help you avoid unnecessary setbacks later.

Choose a Registered Agent

As part of forming your nonprofit corporation, you’ll need to designate a registered agent. This is the person or company responsible for receiving legal and official government documents on behalf of your organization.

Depending on your state, you may have several options. You can:

• Serve as your own registered agent.
• Ask an attorney to serve in that role.
• Hire a professional registered agent service.

When I was researching this step, one thing I had to consider was that if you choose to serve as your own registered agent, your name and address may become part of the public record. For some people, that’s perfectly fine. Others prefer the added privacy and convenience of using a professional service.

Apply for an EIN

Once your nonprofit corporation has been formed, one of the next steps is applying for an Employer Identification Number (EIN) through the IRS.

Even if you don’t plan to hire employees, your nonprofit will still need an EIN. Think of it as the organization’s tax identification number. You’ll use it when opening a bank account, applying for 501(c)(3) status, and completing many other official forms.

The good news is that this is one of the easier steps in the process. If you’re applying directly through the IRS, the online application is straightforward and, in most cases, you’ll receive your EIN immediately after completing it.

Tip: Save your EIN confirmation letter somewhere you’ll be able to find it later. You’ll likely need it more often than you expect when opening accounts, applying for services, or completing future paperwork.

Create Your Bylaws

Your bylaws are essentially the operating manual for your nonprofit. They outline how your organization will be governed, how decisions will be made, and the responsibilities of your board.

Most bylaws cover topics such as:

• Board member roles and responsibilities
• Officer positions
• Meeting requirements
• Voting procedures
• Conflict of interest policies
• How future changes to the bylaws will be approved

Unlike some of the earlier steps in the process, this is one area where I think it’s worth considering professional guidance. While there are reputable templates available online that can provide a great starting point, your bylaws become the governing document for your organization. Spending a little money upfront to have an attorney review them or help tailor them to your nonprofit can save significant confusion and potential issues as your organization grows.

Remember, your bylaws aren’t meant to be set in stone forever. As your nonprofit evolves, it’s perfectly normal to amend them so they continue to reflect how your organization operates.

Open a Bank Account

Once you’ve received your EIN and filed your Articles of Incorporation, it’s time to open a dedicated bank account for the nonprofit.

Keeping your nonprofit finances completely separate from your personal finances is essential from the very beginning. It makes bookkeeping easier, helps build credibility, and will save you countless headaches when it comes time to file reports or prepare financial statements.

Before visiting the bank, check what documents they’ll require. Most banks will ask for your Articles of Incorporation, EIN confirmation, and identification. Some may also request your bylaws or a board resolution authorizing the account.

Take a little time to compare banks and credit unions as well. Some offer nonprofit accounts with reduced fees or additional services designed specifically for charitable organizations.

Apply for 501(c)(3) Status

Applying for federal tax-exempt status is what allows your nonprofit to be recognized by the IRS as a charitable organization under Section 501(c)(3). For most nonprofits, it’s also what allows donors to make tax-deductible contributions.

Depending on your organization, you’ll complete either Form 1023-EZ or the longer Form 1023. The IRS provides eligibility requirements for each, so your first step is determining which application is appropriate for your organization.

One thing that surprised me was learning that you can begin accepting donations before your application is approved. However, you should not represent those donations as tax deductible until you’ve received your IRS determination letter.

It’s also important to remember that federal approval isn’t the only requirement. Depending on your state, you may also need to register before soliciting charitable donations.

This is another area where I think professional guidance is well worth considering. Whether you work with an attorney, an accountant, or another professional experienced with nonprofit filings, having someone to assist with completing or reviewing your application before you submit it can provide peace of mind and help you avoid costly delays or mistakes.

Build Your Online Presence

One of the first things I wanted to do after getting the legal pieces in place was create a professional online presence. Even if your nonprofit is small, having a website and professional email address helps build trust and gives people confidence in your organization.

Don’t feel like you need a large or complicated website to get started. A simple website that clearly explains your mission, introduces your organization, and provides a way for people to contact or support you is more than enough.

As your organization grows, your website can grow with it.

At a minimum, I’d recommend setting up:

• A website with your own domain name
• A professional email address that matches your domain
• An email list so you can stay connected with supporters
• Basic social media accounts using your organization’s name

Set Up a Donation Platform

Once people discover your organization, make it as easy as possible for them to support your mission.

There are many excellent donation platforms available, and the right one depends on your organization’s needs and budget. Some of the more popular options include:

• Givebutter
• PayPal for Nonprofits
• WP Give if you’re using a WordPress website

As you’re comparing platforms, think beyond simply accepting donations. Consider questions like:

• Can donors make recurring gifts?
• Will it automatically send donation receipts?
• Can I export donor information?
• Does it integrate with my website or email platform?
• What fees will donors or the organization pay?

Choosing the right platform now can save you from migrating donor information later.

Think about the experience from the donor’s perspective. If someone is inspired to support your mission, the donation process should feel simple, secure, and trustworthy.

Set Up an Accounting System

As a former accountant, you probably won’t be surprised that I believe this step deserves your attention from day one.

One of the best things you can do for your nonprofit is create good financial habits early. Keeping accurate records doesn’t just make tax season easier. It builds transparency, strengthens trust with donors, and gives your board better information for making decisions.

Whether you use accounting software, work with a bookkeeper, or hire an accountant, choose a system that you’ll actually keep up with consistently.

Track every dollar that comes in, every dollar that goes out, and keep supporting documentation organized.

Good bookkeeping isn’t just about compliance. It’s about being a good steward of the resources people have entrusted to your organization.

Examples of costs you may incur

Typically Required	May Be Optional
State incorporation fees	Attorney
IRS application fee	Accountant
Domain name	Logo design
Registered agent (if using a service)	Business cards
Bank account	Premium software

Final Thoughts

When I first started asking whether Still Worth Saving should become a nonprofit, I had no idea where the journey would lead. Looking back, I’m grateful I took the time to build a strong foundation before worrying about the paperwork.

The forms eventually get filed. The approvals eventually arrive. But the mission is what carries you forward long after those tasks are complete.

If your mission is worth pursuing, it’s worth building well.