Nonprofit Start Up Resources

Starting a nonprofit can feel overwhelming. To help facilitate the process, CRC has put together some key resources on the essentials for starting and key building blocks. These include:

  • Nonprofit Start Up for Success Road Map
  • Nonprofit Start Up Checklist
  • Alternatives to Starting a Nonprofit While Still Pursuing Your Mission
  • Nonprofit Boards: What to Know Before You Start
  • The Nonprofit Organization 501(c)(3) Tax Exempt Process
  • Nonprofit Sector Resources

Start Up Nonprofit: FAQ

There are three components for an organization to be exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code. A not-for-profit organization must be (1) organized and (2) operated exclusively for (3) one or more exempt purposes. Learn more from the IRS: ABCs for exempt organizations | Internal Revenue Service

  1. organized and operated exclusively for exempt purposes; The exempt purposes set forth in section 501(c)(3) are charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and preventing cruelty to children or animals.
  2. none of its earnings may inure to any private shareholder or individual; and
  3. it may not be an action organization that attempts to influence legislation as a substantial part of its activities nor participate in any campaign activity for or against political candidates.

For more information, see the IRS brochure: Applying for 501(c)(3) Tax-Exempt Status.

The IRS defines 25 organizations under the 501(c) tax-exempt status, the following are the 6 most common.

  1. 501 (c) (3) – Religious, charitable, educational, etc.
  2. 501 (c) (4) – Social welfare
  3. 501 (c) (5) – Labor, agriculture organization
  4. 501 (c) (6) – Business leagues
  5. 501 (c) (7) – Social and recreational clubs
  6. 501 (c) (8) – Fraternal beneficiary societies

If you are not sure you are ready to take on all the obligations of running a 501(c)(3) organization you may want to consider starting a new program within an existing nonprofit.  You can:

Nonprofit Organization 501(c)(3) Tax Exempt Process

Determine if you are ready to become a 501(c)(3) nonprofit organization.

Incorporate your nonprofit organization in the State of Colorado.

  • Develop Nonprofit Articles of Incorporation for your organization.
  • Register your nonprofit in the State of Colorado at the Secretary of State website.

Apply for your Organization’s Employer Identification Number (EIN) with the Internal Revenue Service.

  • You can obtain an EIN online through the IRS website for free after completing a series of prompted questions.

Learn more about the elements of being a tax exempt organization at the IRS: ABCs for exempt organizations | Internal Revenue Service

Also, determine whether you must file IRS Form 1023 (Application for Recognition of Exemption under Section 501(c)(3) of the Internal Revenue Code) OR if you are eligible to file IRS Form 1023-EZ (the streamlined application).

  • To determine your eligibility to submit the streamlined application, complete the Form 1023-EZ Eligibility Worksheet in the Instructions for Form 1023-EZ

Obtain and complete a paper version of IRS Form 1023 OR complete IRS Form 1023 online (using the interactive guide) OR, if eligible, complete IRS Form 1023-EZ online. Complete your Articles of Incorporation, Bylaws and all necessary attachments.

File the Form 1023, Articles of Incorporation, Bylaws and necessary attachments with the Internal Revenue Service.

  • The application fee is either $400 or $850 depending on your estimated annual organizational budget size.
  • The review and IRS approval process can take anywhere between 6 months and 18 months.

Form 1023 Assistance

CRC is pleased to provide information about area providers who help groups complete IRS Form 1023. This list has been provided to assist you in filling out paperwork required to start a nonprofit organization. Community Resource Center (CRC) does not assume responsibility for referrals. We also do not provide consulting services for any paperwork. Some organizations in the area that do offer this kind of consulting service include:

Other Legal Resources

Additional Resources

Take your learning to the next level with targeted trainings:

Nonprofit Financial Leadership

Learn the most critical components of financial management for nonprofit organizations to prepare strong financial documents for grant applications and board meetings. Topics covered include an understanding of basic financial management terminology, key policies, documents, and best practices for success.

The event focuses on building organizational capacity around nonprofit accounting practices, financial oversight, internal controls. year-end reporting requirements, and an overview of financial statements including cash flow and statement of activities. Learn about the roles that staff and boards both have in regard to nonprofit finances. Also, get a better understanding of what story your financial statements tell about your nonprofit.

Program Planning & Evaluation

Build your capacity to write competitive grants by gaining a deeper understanding of all that goes into a successful application – beyond just answering the questions. In this interactive session you will learn and discuss how to structure a grant narrative for maximum effectiveness, build data systems for impactful grant reporting, strengthen funder relationships and cultivate donors, create sustainable grant management tools, and build a culture of philanthropy across your organization.

For more information, please contact:

Alex McHenry
Director of Programs & Operations