STEP/TASK

ROLE

TIMELINE

Name the Nonprofit.  The name of the nonprofit must be distinguishable from names of other businesses currently operating in Virginia. The name can not contain words or phrases that would make the general public think the nonprofit was created for any other purpose than intended. Phrases or words can not be used that can be deemed offensive. Potential names can be checked for availability with the Virginia business name database. Names can be reserved for 120 days online for a fee of $10. Rules for naming an organization can be found here.

Nathan, Sujan, Rick, Jenna

August 1

Form a Mission Statement. The nonprofit’s mission statement will be a broad outlook of what it wants to accomplish. The statement should be short (1 to 2 sentences) and concise, however it will accurately portray who the nonprofit is and how it will contribute to the mission. It should be noted that the mission statement should be intriguing and engaging as it will be used on published materials.

Nathan, Sujan, Rick, Jenna

August 4

Form a Vision Statement. The nonprofit’s vision statement will effectively communicate the goals of the nonprofit for the future and guide the nonprofit, the goals should be challenging but attainable. The vision statement will be short and concise.

Nathan, Sujan, Rick, Jenna

August 4

Choose initial directors and officers. The board of directors (board members are elected) will serve as a support system for the nonprofit. The board must have 3 (minimum) directors who have no relation to each other. The board is responsible for supervising the operations of the nonprofit. Officers are members of the board that are elected to help run the day to day activities of the nonprofit and to ensure its success. There are 4 officer positions within the board: President, Vice-President, Treasurer and Secretary. Board members need to represent the mission and purpose of the nonprofit and also be an advocate for its interests.

Nathan, Sujan, Rick, Jenna

August 4

Prepare bylaws and conflict of interest policy. Bylaws will contain rules and procedures of how the nonprofit will operate (how meetings will be held, election of officials and directors, corporate formalities). A conflict of interest policy ensures that the decisions made by the board or officers are in the best interests of the nonprofit and not individual members. Bylaws and the conflict of interest policy will be adopted during the first meeting of the nonprofit when the board and officials are appointed.

Nathan- First Draft

Sujan & Rick - editing and details

August 6 Final draft

File Articles of Incorporation. Articles of   incorporation are filed with the state to register the nonprofit. In order to qualify as a 501(c)(3) the purpose of the nonprofit must explicitly be stated and must include what the nonprofit will use assets for; along with what will happen to assets if the nonprofit is dissolved. Articles will include if the nonprofit will have members and how directors will be elected. Instructions on filing can be found in the Virginia Nonprofit Organization Toolkit. 

Rick and Jenna will file with state

Filed on August 7, 2022

Appoint a Registered Agent. An individual or corporation needs to be appointed to accept and file legal documents on behalf of the nonprofit. The registered agent acts as a liaison between the nonprofit and the state. The person or corporation must have a physical address and live or operate within the state of Virginia. A member of the board can act as the registered agent as long as they accept the responsibilities of the position.

Nathan, Sujan, Rick, Jenna

August 4

Hold first official meeting of board of directors. This meeting is intended to set up the organizational structure of the board. The following tasks should be completed

• Approve bylaws
• Elect directors (if not in articles)
• Appoint officers
• Set up accounting period and tax year
• Set up/open corporate bank account

At the conclusion of meeting a corporate records binder should be set up, the binder should include meeting minutes, bylaws, consent forms, and other important documents.

Nathan – Agenda

Nathan/Sujan/Rick/Jenna - selection and election of directors and appoint officers

August 22

Obtain an Employer Identification Number (EIN). This number serves as our federal tax ID number. It will identify the nonprofit.

It will allow us to:

• open a bank account
• file taxes as a nonprofit on the federal and state level
• hire employees.

The EIN can be obtained from the IRS free of charge. Filing can be done online.

Rick - file

Filed on August 23

Apply for 501(c)(3) status. To file for a 501(c)(3) status the following must be met:

• 3 directors with no relation
• File articles of incorporation
• Adopt bylaws and conflict of interest policy
• Possess and EIN number

A 1023 form must be filed in order to receive the 501(c)(3) status. In order to submit the form the nonprofit will:

Register for an account at Pay.gov

Enter 1023 in search box and select the 1023 form

Complete the form

Instructions for completing the form can be found here. If the application is approved the IRS will send the nonprofit a letter designating the nonprofit as exempt from federal taxes.

Rick - file

Field on August 23

Obtain a Business License. There may be a need for the nonprofit to obtain a business license as we may need to obtain licenses or permits for the work we hope to accomplish.

The requirements for obtaining a license are:

• Federal Employment Identification Number
• Description of business activities
• Nonprofit name
• Start date of business
• Number of employees and expected annual sales
• Address of nonprofit and contact info
• Business sales tax number, if we have one
• Estimated gross revenue

Instructions for applying and obtaining a license can be done here

Rick/Jenna

Applied - August 23

Obtained - August 30

Develop a budget: Financial stability and sustainability is essential for the existence of the nonprofit. In order to achieve the goals in the vision statement and carry out the mission financial management is necessary. By assessing the amount of money the nonprofit has to spend, and what it needs to accomplish tasks will provide information on funding that needs to be secured. It is important that the nonprofit create and assess the budget annually. Periodically reviewing the budget throughout the year helps understand the financial health of the nonprofit.  

Nathan - Template

Rick/Jenna - details

Draft due on August 22

Open a business banking account. Opening a business banking account will separate personal assets from business assets. This will protect members/board members from legal liabilities. It will also be helpful for the nonprofit to secure a business credit card. This will allow the nonprofit to separate business expenses from personal expenses, it also aids in building credit which can help with raising capital for the nonprofit.

In order to open a business banking account the following are needed:

• Nonprofit EIN number
• Copy of bylaws
• Copy of Articles of Incorporation

Jenna

Opened - August 25

Hire a business accountant. Hiring an accountant familiar with tax laws and codes pertaining to nonprofits will help avoid fines, penalties, and other tax errors that could arise. This will also aid in managing funding and understanding gains and losses in our nonprofit. Having an accountant also prevents abuse of power within the organization as it pertains to assets.

Nathan/Sujan/Rick/Jenna

August 30

Obtain a D.U.N.S. number. In order to apply for federal grants and cooperative agreements the nonprofit needs to obtain a DUNS number. Instructions on how to apply and obtain a DUNS can be found here.

Jenna

Filed September 1

File for Virginia state tax exemptions. As a nonprofit operating in the state of Virginia the nonprofit can apply for tax exemptions. Certain criteria must be met before filing these along with instructions on filing can be found here.

Jenna

Filed September 1

Filing as a charitable organization for soliciting contributions in Virginia. In order to obtain funds through fundraising or if the nonprofit plans to have funds solicited on our behalf we must file an initial registration statement with the commissioner of Virginia. The code law and the necessary information needed for filing can be found here. 

Jenna

Filed September 2

Apply for a nonprofit mailing permit. The federal government offers reduced bulk mailing prices for non profits. It might be beneficial to apply for this if the nonprofit intends on using bulk mail for soliciting contributions/communicating. Information on how to apply and the form can be found here.

Rick/Jenna

Apply and Filed September 2