1. Check the availability of the organization's name. Before you file the paperwork you will need to make a name for your organization. To check for availability of the proposed name of the organization call the Washington Secretary of State's Office (360) 753-7115.



2. Write and File Articles of Incorporation with the State of Washington. In order to legally form a nonprofit corporation you will need to file an "Application to Form a Nonprofit Corporation" with the Washington Secretary of State. You can obtain the application at http://www.secstate.wa.gov/corps or request one by telephone at 360-753-7115. NOTE: Be sure to reference your Articles of Incorporation in the appropriate spaces on the application form. In particular, language similar to the "Dissolution" language in the Sample Articles of Incorporation will be important later when you apply to the IRS for exempt status, so be sure to reference that paragraph on the form under "Dissolution."
   
   Include a cover letter with information about the contact person for your group. This person will receive the approved Articles from the State.
   
   Include the required incorporation fee of $30. In order to remain registered, in subsequent years you will receive an annual registration form and will need to pay a $10 fee.
   
   After reviewing your application, the State may send you a list of questions. This is a normal part of the process and gives you the opportunity to clarify and/or correct portions of your application.
   
   The stamped approved copy of the Articles of Incorporation that you receive is referred to by the IRS as the "conformed copy." Keep in mind that you need to send copies of the conformed copy to the IRS along with Form 1023 (see item #5, below).
   
   
3. Create Bylaws. Bylaws outline how your agency will operate. They typically include information on an agency's mission, membership (composition, number and structure of meetings, responsibilities and decision-making process, etc.), geographic area served, Board of Directors (number, election process, terms, quorum, vacancies, etc.), committees, fiscal management (fiscal year, committee/officer responsibility etc.), and how to amend Bylaws. For a template for bylaws see: Sample Nonprofit Bylaws.
   
   
4. Obtain a federal Employer Identification Number (EIN). Even if you don't plan to hire employees, you must obtain an EIN. The process is very simple and costs nothing. Just fill out IRS form SS-4 and fax it to the appropriate regional office. You'll receive your organization's EIN by fax within 48 hours. NOTE: In addition to the regular IRS forms that are available at the IRS web site, you can find "fill-in" forms that allow you to fill them in on your computer. These are available at http://www.irs.gov/formspubs/index.html
   
   
5. File Federal Papers for Tax Exemption. In addition to filing Articles of Incorporation with the State, you will also need to obtain federal exemption from taxes from the Internal Revenue Service (IRS).
   
   You will need the following forms:(The following links are in pdf format. You will need the FREE Adobe Acrobat Reader to view and print them. Other file formats are available at: http://www.irs.ustreas.gov or you can request them by calling the IRS at (800) 829-3676)
   
   
   • Form 1023 ("Application for Recognition of Exemption under 501(c)(3) of the Internal Revenue Code"). Processing this form takes approximately 100 days and you may be asked to provide additional information before they can make the determination about your request.
   • Form 8718 ("User Fee for Exempt Organizational Determination Letter Request")
   • Publication 557 ("Tax-Exempt Status for Your Organization")
   
   
   Organizations should file these forms within 15 months of incorporation. Form 1023 requires a filing fee of $500.00 if the organizational budget will average more than $10,000 per year over four years, or $150 if less.
   
   To file these forms, you will need to provide the following information:
   • Description of exempt purpose and actual programs, who is being served and why, demographics of constituency, etc.
   • Financial information - where will the funds originate, private vs. public support, information about fees for services, statement of revenue and expenses, balance sheet, etc.)
   
   
   
6. Annual Obligations Once Your Federal Tax Exempt Status is Granted
All 501(c)(3) organizations (except purely religious organizations) need to file Federal Form 990 (Return of Organization Exempt From Income Tax) annually with the IRS. This form is available online at: http://www.irs.ustreas.gov or by calling the IRS at (800) 829-3676).


7. Other Considerations:
   • Board Membership and Meetings- recruitment and retention strategy, how often will the Board meet, who prepares agenda, minutes and notices, etc.?
   • Fundraising Strategy - What funding is needed, and where will it come from?
   • Accounting System - How will funds be tracked and reported? What internal controls need to be in place?
   • Staffing - What are the staffing needs, what are the personnel policies and payroll procedures?
   • Community education/awareness - What is the communications plan, how will other people and groups know about the organization's work?
   • Evaluation - How will the organizations work be monitored and assessed?
   • Insurance - What insurance does the organization need?

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