• Starting a nonprofit organization requires planning and research.process flow image by Christopher Hall from Fotolia.com
  
  According to the Foundation Center and the National Center for Charitable Statistics, over 1.5 million nonprofit organizations exist in the United States. Nonprofit organizations provide valuable community services to under-served communities (such as low-income families, abused women and disabled persons). Starting a nonprofit requires planning and research but can ultimately become a rewarding experience for a person with a mission.
  
  

Articles of Incorporation

• A nonprofit organization should file articles of incorporation. Usually filed through the state attorney’s office, incorporation officially names the organization, its location and reason for existence. Incorporation can provide legal protection. In addition to incorporation, nonprofits need bylaws which clearly explain how the nonprofit will govern and function. Bylaws also include information on the selection of board members, membership requirements and committee structure.
  
  

Tax Exemption

• Most nonprofit organizations choose to file for a tax-exempt status with the Internal Revenue Service (IRS). The most common exemption status is 501(c)(3). To file for tax-exempt status, start with form 1023 from the IRS. The process may require the assistance of a tax or legal professional. It usually takes three to six months for an answer from the IRS.
  
  

Board of Directors

• A nonprofit should carefully select board members who either have proficient knowledge in the nonprofit area or some related expertise that augments the knowledge-base of the new enterprise. Board members help create policy for the organization and work on budgets. Make sure to provide clear guidelines that outline board member duties. Additionally, organizations should conduct a communitywide search for potential candidates to ensure a wide net of potential board members.