Tips to Setting Up a 501c3

Having your own 501c3 is NOT required to be a part of Love Our Cities. In fact, we recommend you take all the time you need under a fiscally sponsoring organization. But, as you grow you may find that becoming your own entity is a good choice. Unfortunately, there is not "one checklist" for all states - therefore you will have to do your research!

Here are some helpful guidelines: This is NOT a complete checklist!*

1. Define your mission & vision

2. Define your board (most of the time this will be members of your team!)

3. Create by-laws for your board of directors - Develop governance policies for the organization.

4. Establish your nonprofit’s values and the organizational approach to your work.

5. Establish an annual budget for your non-profit based on operating expenses including salaries.

6. Develop a fundraising plan that includes fundraising goals, and fundraising methods including grants, corporate and individual donations, and in-kind contributions.

7. Establish a bookkeeping system to account for cash receipts and cash disbursements, assets, and liabilities. (See Quickbooks or Xero).

8. Establish financial auditing procedures and internal controls. Retain or consult with a bookkeeper to create accounting records and financial reports. Determine your fiscal year and type of accounting system (cash vs. accrual). Visit this site for more information on cash vs. accrual accounting.

Federal & State Forms - EVERY STATE IS DIFFERENT

1. Apply to IRS for an employer identification number (EIN).

2. Establish a bank account and establish check signing procedures.

3. Designate which member(s) have the power to sign checks.

4. Apply for IRS 501(c)(3) tax exempt status using IRS Form 1023. Check and see if you are eligible for the 1023-EZ form.

5. File for state and local tax exemptions and any other filing requirements. Visit this link for your state’s individual requirements.