> ## Documentation Index
> Fetch the complete documentation index at: https://docs.pluvel.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Nonprofit Formation

> Form a 501(c)(3) nonprofit organization through Pluvel.

You want to start something that matters — a charity, an educational program, a community organization. But you've heard the process is complicated. Multiple filings. IRS applications. Boards and bylaws and bureaucracy.

Here's the reality: forming a nonprofit takes more steps than forming an LLC, but it's not as scary as it sounds. You file with your state, then apply to the IRS for tax-exempt status. If you've got a clear mission and organized records, you'll get there.

## Why form a nonprofit

**Tax exemption.** No federal income tax on revenue related to your mission. Some states also exempt property and sales tax.

**Donor deductions.** Contributions to 501(c)(3) organizations are tax-deductible. That makes fundraising dramatically easier — donors have a financial incentive to give.

**Grant eligibility.** Most foundations and government grants require 501(c)(3) status. Without it, you're locked out of major funding sources.

**Credibility.** Formal nonprofit status signals accountability and legitimacy. Donors trust organizations with IRS recognition.

## Two steps to tax-exempt status

Forming a nonprofit requires two separate approvals:

<Steps>
  <Step title="State incorporation">
    File Articles of Incorporation with your state as a nonprofit corporation. This creates the legal entity.
  </Step>

  <Step title="IRS 501(c)(3) application">
    File Form 1023 or 1023-EZ with the IRS to get tax-exempt status. This is the federal recognition that makes donations deductible.
  </Step>
</Steps>

<Warning>
  State incorporation alone doesn't make you tax-exempt. You must also receive IRS determination. Until then, donations aren't tax-deductible.
</Warning>

## What Pluvel handles

| Task                        | What we do                                   |
| --------------------------- | -------------------------------------------- |
| Name availability           | Check if your name is available              |
| Articles of Incorporation   | File nonprofit articles with your state      |
| Registered agent            | Provide a registered agent (included)        |
| EIN application             | Apply for your federal tax ID                |
| Bylaws                      | Generate nonprofit bylaws template           |
| Conflict of interest policy | Required for 501(c)(3) applications          |
| Form 1023 or 1023-EZ        | Prepare and file your tax-exempt application |

## 501(c)(3) requirements

To qualify, your organization must:

**Operate exclusively for exempt purposes:**

* Charitable
* Religious
* Educational
* Scientific
* Literary
* Prevention of cruelty to children or animals
* Public safety testing

**Not benefit private individuals.** No part of earnings can benefit private shareholders or individuals. This is called the "inurement prohibition."

**Limit political activity.** No campaign activity for political candidates. Limited lobbying (there are specific tests for how much is allowed).

## Form 1023 vs. 1023-EZ

| Form        | Who qualifies                                               | Processing time | Complexity              |
| ----------- | ----------------------------------------------------------- | --------------- | ----------------------- |
| **1023-EZ** | Projected revenue under $50,000/year, assets under $250,000 | 2-4 weeks       | Shorter, streamlined    |
| **1023**    | Everyone else                                               | 3-6 months      | Detailed, comprehensive |

<Info>
  Most new nonprofits qualify for Form 1023-EZ. We'll assess your situation and recommend the appropriate form.
</Info>

## What you'll need

To form a nonprofit and apply for 501(c)(3) status:

* **Mission statement** — Clear description of your exempt purpose
* **Articles of Incorporation** — With required IRS language about purpose and dissolution
* **Bylaws** — Governance rules for your organization
* **Board of Directors** — Minimum 3 directors in most states (unrelated individuals recommended)
* **Conflict of interest policy** — Required by IRS
* **Budget projection** — Expected revenue and expenses for first 3 years

## Timeline

| Step                  | How long it takes |
| --------------------- | ----------------- |
| State incorporation   | 1-5 business days |
| EIN application       | Same day          |
| Form 1023-EZ approval | 2-4 weeks         |
| Form 1023 approval    | 3-6 months        |

## Board requirements

Nonprofit boards work differently than for-profit boards:

| Requirement  | Details                                        |
| ------------ | ---------------------------------------------- |
| Minimum size | 3 directors in most states                     |
| Independence | Related parties should be a minority           |
| Compensation | Board members typically serve unpaid           |
| Duties       | Fiduciary duty, duty of loyalty, duty of care  |
| Meetings     | Annual meeting required, document with minutes |

<Tip>
  For credibility with grantors, avoid a board composed entirely of family members. Funders want to see independent oversight.
</Tip>

## Ongoing compliance

501(c)(3) organizations have annual requirements:

| Requirement                              | When it's due                                              |
| ---------------------------------------- | ---------------------------------------------------------- |
| **Form 990**                             | 15th day of 5th month after fiscal year-end                |
| **State annual report**                  | Varies by state                                            |
| **Charitable solicitation registration** | If fundraising in multiple states                          |
| **Board meetings**                       | At least annually                                          |
| **Record keeping**                       | Maintain minutes, financial records, donor acknowledgments |

### Form 990 variants

| Form               | Who files                                        |
| ------------------ | ------------------------------------------------ |
| 990-N (e-Postcard) | Gross receipts ≤ \$50,000                        |
| 990-EZ             | Gross receipts \< $200,000 and assets < $500,000 |
| 990                | Everyone else                                    |

## What we don't cover

Pluvel handles formation and basic compliance. Some nonprofit needs require specialized help:

* **Fundraising strategy** — How to raise money effectively
* **Grant writing** — Preparing grant applications
* **Major donor cultivation** — Building relationships with big donors
* **Charitable solicitation registration** — Required in \~40 states if you fundraise nationally

## State-specific notes

<AccordionGroup>
  <Accordion title="California">
    Must register with California Attorney General's Registry of Charitable Trusts. Annual RRF-1 filing required in addition to federal Form 990.
  </Accordion>

  <Accordion title="New York">
    Register with the Charities Bureau before soliciting donations. CHAR500 annual filing required.
  </Accordion>

  <Accordion title="Texas">
    No state income tax. File periodic reports with the Secretary of State. Relatively straightforward compliance.
  </Accordion>
</AccordionGroup>

## Types of 501(c) organizations

While 501(c)(3) is most common, other options exist:

| Type      | Purpose                            | Donations tax-deductible? |
| --------- | ---------------------------------- | ------------------------- |
| 501(c)(3) | Charitable, religious, educational | Yes                       |
| 501(c)(4) | Social welfare                     | No                        |
| 501(c)(6) | Trade associations                 | No                        |
| 501(c)(7) | Social clubs                       | No                        |

<Card title="Start your nonprofit" icon="hand-holding-heart" href="mailto:support@pluvel.com">
  Contact us to begin your nonprofit formation.
</Card>