Build Your Nonprofit Today
We’ve assisted over many nonprofits—let us help you establish yours. As a nonprofit corporation, you can qualify for grants, apply for 501(c)(3) tax-exempt status if eligible, and secure your organization’s assets. Starting at — + filing fees. These costs are often tax-deductible.
Why use PATA Solution to set up your Non-Profit?
Quick Setup in Minutes
Set up your nonprofit in three straightforward steps with a leader in online business formation. We prepare and file your documents with the Secretary of State.
Get It Done Correctly
Our step-by-step tools guide you through launching your nonprofit. We can handle statefiling and help you apply for 501(c)(3) tax-exempt status at the same time.
Support and Guidance
Enjoy lifetime customer support with guaranteed satisfaction. Plus, gain access to a network of attorneys who can guide your nonprofit’s formation and help it thrive.
What you need to know about forming an DBA
How to start a nonprofit with Us—it’s easy!
1. Tell us your nonprofit name
2. Answer some questions online
3. We’ll complete and file your paperwork
We can help you with the rest, too!
1. Get an EIN (Employer Identification Number)
2. File for 501(c)(3) tax-exempt status
3. Obtain a list of required licenses
What is a nonprofit?
A nonprofit organization is a group formed to pursue a positive purpose rather than generate
profit. None of the organization’s earnings are distributed to its members, directors, or
officers.
Which causes qualify for tax-exempt status?
Only nonprofits advancing specific purposes are eligible for tax-exempt designation. Examples include organizations focused on religious, scientific, charitable, educational, literary, sports-related, cruelty-prevention, or public safety activities.
The Benefits of Starting a Nonprofit
Enjoy Tax Advantages
Forming a nonprofit provides eligibility for federal, state, and local tax exemptions, allowing you to save money and dedicate more resources to your mission.
Qualify for 501(c)(3) Status
Meeting IRS requirements can grant your nonprofit 501(c)(3) status, enabling tax-deductible donations and attracting stronger support from donors.
Safeguard Your Assets
Nonprofit board members and directors are generally shielded from personal liability, protecting individual finances while supporting organizational goals.
Pros and Cons of Forming a Nonprofit
Advantages
1. Make a meaningful impact by addressing community
needs and creating positive change.
2. Eligible for 501(c)(3) tax-exempt status if requirements
are met.
3. Access government grants, loans, and other funding
opportunities.
4. Receive tax-exempt contributions from other nonprofits
via fiscal sponsorship.
5. Draw a reasonable salary as part of operating expenses.
Disadvantages
1. Keep accurate records of donations, grants, and
financial activities.
2. File annual IRS returns to maintain tax-exempt status.
3. Comply with bylaws and governance regulations.
4. Publicly disclose financial statements and salaries as
required.
What Qualifies as a 501(c)(3) Nonprofit?
To qualify, an organization must operate exclusively for recognized purposes such as religious, charitable, scientific, or educational activities. Additionally, it must comply with IRS requirements, including filing annual reports to maintain its tax-exempt status.
What is a 501(c)(3) Not Allowed to Do?
A 501(c)(3) organization risks losing its tax-exempt status if it distributes earnings to shareholders, engages in political campaigns or substantial lobbying, or fails to pursue its stated charitable or qualifying mission.
Ready to get your Non Profit?
Answers to Non-Profit Formation Questions
A quick guide to help you understand the registration process and requirements.
How do nonprofit owners make money?
Nonprofits receive revenue through sources like grants, donations, and membership programs. They use their revenue to pay for expenses needed to operate their business, including employee salaries.
What is the difference between a nonprofit and for-profit corporation?
A key difference is that a for-profit company can distribute earnings to owners or shareholders, while a nonprofit is restricted from doing so. It’s crucial to maintain tight controls over an organization’s net earnings and finances to maintain this distinction.
Is a nonprofit the same as a corporation?
A nonprofit may be formed as a corporation, but it is possible to create other nonprofit entities, such as a nonprofit LLC.
What does 501(c)(3) actually refer to?
It’s a section of the Internal Revenue Code—26 U.S.C. § 501(c)(3)—that makes qualifying organizations exempt from federal income tax and allows them to accept tax-deductible donations.
Civic leagues, homeowners associations, social welfare organizations, and political organizations are common types of nonprofits that don’t qualify for 501(c)(3) status. However, they may qualify for a tax exemption under other sections of the Internal Revenue Code.
Both public charities and private foundations have 501(c)(3) status, but how they get funding differs. Public charities typically get funding from the public and government. Private foundations typically get donations from a few individuals, a family, or a corporation. Regardless of the funding source, none of the earnings can be distributed to private shareholders or individuals.
Are there other names used for a nonprofit?
There are a variety of terms used for nonprofits. You may see a nonprofit organization called an NPO. If an organization serves a group of members rather than the general public, it may be called a non-for-profit organization. An example of a nonprofit institution is a public university. Sometimes you’ll see tax-exempt organizations casually referred to as “501c3 nonprofits.”
What is a disadvantage of a nonprofit?
Because nonprofit corporations have boards of directors to consult, nonprofits can be slower to act on opportunities than nimble startups.
What is the difference between an LLC and a 501(c)(3) organization?
An LLC is a type of business legal entity, while the term 501(c)(3) refers to any organization that’s been granted tax-exempt status by the IRS under that specific section of the Internal Revenue Code.
Which groups qualify for 501(c)(3) nonprofit status?
In addition to satisfying various IRS requirements, eligible organizations must generally be involved in religious, charitable, scientific, public safety, literary, or educational activities.
Maintaining your tax-exempt status requires year-round compliance, including recording all finances and expenses, remaining compliant with nonprofit bylaws, and filing Form 990 annually with the IRS.