Determine Your Charity's Organizational Structure

• 1). Define what kind of charity you want to start and whether an incorporated non-profit structure will best serve your charitable research goals; alternatively, consider whether your services will predominantly center on fund allocation and, if so, whether a charitable trust makes a more efficient choice.
  
  
• 2). Confirm whether your charity qualifies for incorporation as a non-profit organization as identified by Section 501(c)(3) of the Internal Revenue Code (IRC). To qualify, your organization's activities must be wholly charitable in nature and fall under certain IRS-defined tax exempt purpose categories, such as community benefit, religious, scientific or educational.
  
  
• 3). Declare your charity's mission in a formal written mission statement; your mission statement should succinctly communicate to potential audiences what charitable research services you hope to provide.
  
  

Procedure to Incorporate as a 501(c)(3) Non-Profit Organization

• 1). Write and sign articles of incorporation for your organization; state the purpose, name, duration of operation, and other basics.
  
  
• 2). Write and sign by-laws for your organization; state the rules that govern your charity, including how decisions will be made and by whom, and how conflicts will be resolved.
  
  
• 3). File an application packet for a non-profit organization with your state's Secretary of State if required by your state. Pay the small fee for filing.
  
  
• 4). Obtain a Federal Employer Identification Number (EIN): the number that will identify your organization to the Internal Revenue Service (IRS) for tax purposes. Call the IRS at (800)-829-4933 if you wish to have your EIN assigned immediately or apply online instead.
  
  
• 5). Complete and file a 1023 Application Packet (available online at www.irs.gov) with the IRS for recognition of your federal status as a charitable organization, but only after you have received acceptance from the Secretary of State for your application described in Step 3.
  
  
• 6). Establish a board of directors and select a registered agent: a person who resides in the state of incorporation and will be responsible for official communications from the state.
  
  
• 7). Safeguard your non-profit tax-exempt status once the IRS has approved your application. Keep detailed records of sources of income and corporate meetings; separate and pay taxes on income not related to the organization's charitable activities; and do not distribute corporate income to board members.