How to Start a Nonprofit Organization in New York

Step 1: Name Your New York Nonprofit

A great business name is a vital ingredient for any business, including nonprofit organizations. Along with choosing a name that will help you attract as many members and donors as possible, though, you will also need to choose a name that complies with New York naming guidelines.

To learn more about how to name a New York nonprofit, check out ourHow to Name a Nonprofit in New Yorkguide.

New York Business Naming Guidelines

New York business owners must adhere to the following guidelines when choosing business names:

• The name must include an organizational designation, such as “Incorporated,” “Inc.,” “Ltd.,” or “Company”
• The name must not be deceptive in any way and should not suggest that your organization was designed for a purpose different than the purpose stated in your certificate of incorporation
• The name must not falsely suggest that your organization is acting as an agent of the United States or the state of New York
• The name cannot include certain terms such as “doctor,” “lawyer,” “labor,” “council,” “school,” or “education” (without special authorization)
• The name cannot include any words or phrases that are considered obscene or derogatory to certain persons, groups, or beliefs

You can find a complete list of New York business naming guidelines on theNew York State Senate's official website.

Checking Your Name’s Availability

You can check the availability of a business name by conducting a business name search on theNYS Division of Corporationswebsite.

Along with ensuring that your business name is available, it’s also a good idea to see if the name is available as a网络域. That way, when you’re ready to make your website, you will already have control over it before others can obtain it.

Once you’ve chosen a name and web domain for your nonprofit, the best way to complete the process of forming your company is to use a business formation service. There are plenty of high-quality services available for New York business owners to choose from, but our top recommendation is:

Northwest($29 + State Fees)

Step 2: Choose a Registered Agent in New York

In New York, the Secretary of State is the default statutory agent for service of process (i.e.,registered agent) for your nonprofit. Your company’s registered agent will receive important legal documents on behalf of your company and will be responsible for forwarding them to the company.

You can also elect your own agent. If you decide to elect a registered agent for your nonprofit, you will have the option of either electing yourself, an individual within your company (as long as they are a New York resident) or using aregistered agent servicethat is authorized to conduct business in the state.

For more information on how to elect your own agent, be sure to check out our guide onchoosing a registered agent for your New York nonprofit.

Step 3: Choose Your Organization Type

Before proceeding further, you must decidewhat kind of corporate structure your organization will haveand obtain any approvals you might need. You will need to choose from the following options:

1. Religious Corporation- there are distinct rules and regulations that are applicable to religious corporations operating in New York. Access further information about starting a religious organization in New York in theConsolidated Laws of New York.
2. Nonreligious Corporation
   1. Consent or Approval Required- If your nonprofit’s purpose is related to any of the following in the graph below, you must obtain approval from the appropriate governing body. This approval must accompany your Certificate of Incorporation application.

Step 4: Select your Directors & Officers

Thedirectorsof an organization come together to form a board of directors. This board of directors is responsible for overseeing the operations of the nonprofit.

The president, secretary, and other members of the nonprofit who have individual responsibilities and authorities are known asofficers.

Both New York and the IRS require 501c3 nonprofits to haveat least three directors to be eligible for 501c3 status.The majority of directors should not be related to each other.

New York does not have any specific officer requirements, meaning titles are left up to the nonprofit to determine in its bylaws.

To learn more about electing aNew York nonprofit board of directors, read our full guide.

步骤5:Adopt Bylaws & Conflict of Interest Policy

Before your organization is eligible to apply for 501c3 status, you will first be required to create the following documents:

• Bylaws:Bylaws are the rules that dictate your organization’s operating procedures, including its rules, protocols, and management structure
• Conflict of interest policy:A conflict of interest policy is a set of rules designed to prevent board members and officers from acting in their own interest rather than the interest of the company

Both of these documents should be adopted during your nonprofit’s first meeting where the directors and officers are officially appointed.

Step 6: File the New York Certificate of Incorporation

To register your nonprofit, you will need to file the Certificate of Incorporation with the State of New York.

To ensure that your nonprofit is eligible to apply for 501c3, in the Certificate of Incorporation you must explicitly state the following:

1. Purpose:

In order to qualify for 501c3 status, the organization’s purpose must explicitly be limited to one or more of the following:

Charitable, Religious, Scientific, Educational, Literary, Fostering national/international amateur sports competition, Preventing cruelty to animals/children, Testing for public safety

2. Dissolution:

您必须显式地国家的资产rganization will be used for, and what will happen to the assets if the organization is dissolved.

有资格获得501 c3状态,你的资产r organization must only ever be used for purposes approved under section 501c3.

Section 5 of thissample IRS documentprovides an example of these provisions required for 501c3 eligibility.

Step 7: Get an EIN

Every organization in New York is required to attain anEmployer Identification Number (EIN)or Federal Tax Identification Number. This number is used for identification purposes and essentially serves as a Social Security number for your company.

Why You Need an EIN

Organizations in New York are required to have an EIN before they are able to open a business bank account, file federal or state taxes, or hire employees. For these reasons, it’s impossible to create a nonprofit in the state without one.

How to Get an EIN

You can obtain an EIN for your nonprofit free of charge by contacting the IRS either online or by phone. For more information on how to get an EIN, check out ourEIN lookupguide.

Step 8: Apply for 501c3 Status

Before a nonprofit can apply for 501c3 status it must,

1. Elect at least 3 directors not related to each other
2. File the Certificate of Incorporation with the required provisions (As covered inStep 6)
3. Adopt the bylaws and conflict of interest policy
4. Have an EIN number

Once these four conditions have been met your nonprofit can apply for 501c3 tax-exempt status by filingForm-1023online.

If your application is approved, the IRS will send you a determination letter stating that your organization is exempt from federal taxes under section 501c3.