How to Start a Nonprofit in North Dakota


Steve Goldstein
Steve Goldstein
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Steve Goldstein runs LLCBuddy, helping entrepreneurs set up their LLCs easily. He offers clear guides, articles, and FAQs to simplify the process. His team keeps everything accurate and current, focusing on state rules, registered agents, and compliance. Steve’s passion for helping businesses grow makes LLCBuddy a go-to resource for starting and managing an LLC.

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Start a Nonprofit in North Dakota

Are you looking to start a nonprofit in North Dakota? You’ve come to the right place. Known for its vibrant community and rich culture, North Dakota (often referred to as The Peace Garden State) is an ideal location for establishing a nonprofit organization. Unlike for-profit businesses, nonprofits focus on addressing pressing social issues and require a strong foundation, thorough research, and a clear mission targeting a specific community problem.

Embarking on the journey of creating a nonprofit entails various crucial steps, such as obtaining 501(c)(3) status. A 501(c)(3) organization is designed for charitable, religious, educational purposes, and more, qualifying it for federal and state tax exemptions.

In the spirit of North Dakota’s motto, “Liberty and union, now and forever, one and inseparable,” thousands of nonprofits are founded within the state each year. This article will provide a comprehensive guide to starting your own nonprofit corporation in North Dakota. Keep in mind that the steps discussed here are general guidelines, and modifications may be necessary depending on your specific circumstances. To gain a deep understanding of how to start a nonprofit in North Dakota, we encourage you to read this article in its entirety.

What is a Nonprofit in North Dakota?

Nonprofit organizations are legal entities that operate to serve public benefits and address community issues. Unlike for-profit organizations, nonprofits do not aim to generate any profit. The Internal Revenue Service (IRS) generally exempts nonprofit organizations from tax. However, based on the business entity structure, you will receive tax exemptions as a nonprofit.

In North Dakota, ensure you have a community issue to address before you start forming your nonprofit. It can generally be education, religion, charity, social service, or other social issues. Nonprofits do not pay taxes on the money they receive through fundraising programs, donations, or any charitable funding.

Types of Nonprofits in North Dakota

The first thing one has to decide is what type of nonprofit structure one wants. There are several types of nonprofits one can start. Here is a list of nonprofit types one can choose from-

  1. Nonprofit LLC
  2. Nonprofit Corporation
  3. Unincorporated Nonprofit

Forming an LLC in North Dakota for your nonprofit can be a smooth option. However, having a corporation is less complex than having a nonprofit LLC. Hence, it is wise to start a nonprofit corporation instead of an unincorporated nonprofit or nonprofit LLC.

– LLCBuddy Editorial Team.

Technically, starting a corporation for your nonprofit protects your personal assets but also is eligible for Federal and State tax exemptions. When you form an LLC for your nonprofit, it only protects your personal assets but does not give you any tax exemptions. On the other hand, a nonprofit Corporation has both corporation and limited liability company benefits. You can also have an unincorporated structure where you don’t have to register it. Unincorporated nonprofits in North Dakota might be eligible for tax exemptions (check with North Dakota Office of State Tax Commissioner), but this type of organization does not get to enjoy limited liability and personal asset protection.

How to Start a Nonprofit Corporation in North Dakota

Setting up a nonprofit corporation requires a few things to consider. Name of the nonprofit, initial directors, drafting bylaws, get a Registered Agent, obtain tax IDs, insurance, and a bank account – these are important steps you must follow. The steps mentioned here are general business formation steps. State-wise, some steps can be different. Getting an expert consultation before you start your nonprofit corporation formation is recommended. Here are the steps explained below-

Step 1: Get a Suitable Name for Your North Dakota Nonprofit Corp

The first step is to name your nonprofit corporation. You must be sure that the name is available and that no other organization is using this name. You can check the North Dakota LLC name search to find the best suitable name for your organization. You must follow those rules to avoid any legal issues later. You can reserve the name for 1 year for any domestic entity (such as a nonprofit LLC) if you’re not forming the nonprofit immediately.

Step 2: Appoint the Initial Board of Directors

The next step is to get your nonprofit’s initial board of directors. It is very important when you are setting up a nonprofit corporation. You need at least Three unrelated directors to start the organization. If you don’t choose a minimum of Three directors, it will automatically become a member-managed corporation.

Step 3: Appoint Your North Dakota Registered Agent

The third step is to get a North Dakota Registered Agent for your nonprofit corporation. The Registered Agent is a person who receives all the legal documents on your behalf. It is necessary to get a registered agent. He/she must be above 18 years old and have a physical address in North Dakota.

Step 4: Write North Dakota Nonprofit Bylaws

The next important step is to write the company bylaws. The directors and board members must decide how the meetings, elections, voting, and other corporate activities will be held. These bylaws must comply with the North Dakota state law. It is similar to an LLC operating agreement in North Dakota for the LLC owners.

Step 5: File the North Dakota Articles of Incorporation

This is the most important step. File your Articles of Incorporation with the North Dakota Secretary of State. You can do it through two methods, online and by mail. All the formation forms, such as the North Dakota LLC Articles of Organization form, the North Dakota Articles of Incorporation form for corporations, forms for LLPs, and all others can be found on the North Dakota SOS official website. Submit the details of your nonprofit corporation, like the name of the nonprofit, address, name and address of the registered agent, operation dates, directors’ details, and more information related to your company. You can send the form (for offline filing) and the filing fee of $100 for online and by mail filing to the North Dakota, 600 E Boulevard Avenue Dept 108, Bismarck ND 58505-0500 or upload it online (if available).

Step 6: Obtain Tax ID for Your North Dakota Nonprofit Corporation

The subsequent step involves obtaining a Tax ID for your nonprofit corporation. You will need to acquire an Employer Identification Number (EIN) from the official IRS website. To obtain the EIN, submit your application to the IRS office either by mail or through their online platform. There is no associated cost for this process.

Step 7: Get Business Licenses in North Dakota

The next step is to get the business licenses you need to run your nonprofit organization in North Dakota. Check with the local government office if any special licenses you need to run your nonprofit. You can file your nonprofit as a charity if you want.

Step 8: Federal Tax Exemption

You must submit Form 1023 to the IRS to file for federal tax exemption. This form, titled “Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code,” is required for all nonprofit corporations. Smaller nonprofits have the option to file Form 1023-EZ instead. You will be prompted to provide details about your organization upon obtaining the relevant form. Complete the form with the necessary information and submit it. The filing fees are $600 for Form 1023 and $275 for Form 1023-EZ.

Step 9: State Tax Exemption

Once you get the Federal Tax Exempt, it is time for State Tax Exempt. In North Dakota, you must apply for the tax exemption to North Dakota Office of State Tax Commissioner. Get the form, fill it up with the correct details, and send it to the office. You may need to pay a fee along with the form and supportive documents to apply for the State Tax Exemption. You need Tax Exemption Application to apply for the state tax exemption. Read North Dakota classification of taxes to learn more about the North Dakota tax structure.

Step 10: Get Insurance for Your North Dakota Nonprofit

Once you start your nonprofit, you must get insurance to protect your organization. You must get workers’ compensation and unemployment insurance if you have employees. Based on your nonprofit structure, you might need general liability insurance, property, vehicle, auto insurance, etc. You can contact the insurance providers to learn more about which are required for your organization. Also, you can contact North Dakota Insurance Department for more information.

After Forming Your North Dakota Nonprofit Corporation

Once your nonprofit is formed, there are additional steps to complete:

  • Get a Business Bank Account: You must get a business account for all types of business-related transactions in North Dakota. You may need different documents based on the bank and place of business. Check with the bank for it.
  • File Nonprofit as Charity: This is optional. Your nonprofit is either for charity purposes or any purpose that meets your community’s needs. If your organization is for charity purposes, then you can file your nonprofit as a charity to enjoy tax exemptions.
  • Other Business Compliances: You may need additional compliances based on your nonprofit type. Check with your attorney or local authority for more information.

Names of Nonprofit Corporations in North Dakota

Following are some of the Nonprofit Organizations in North Dakota. The contact information of these organizations can be found on North Dakota SOS official websites.

  • Hettinger Charities
  • Hillsboro Charities
  • Hope Charities
  • Horace Charities
  • Jamestown Charities
  • Kenmare Charities
  • Killdeer Charities
  • Kindred Charities.

FAQs

What are the steps to starting a nonprofit in North Dakota?
Starting a nonprofit in North Dakota involves filing articles of incorporation with the North Dakota Secretary of State, obtaining an Employer Identification Number (EIN) from the Internal Revenue Service, registering with the North Dakota Department of Commerce, and obtaining any necessary state and local licenses and permits.
What documents do I need to file to start a nonprofit in North Dakota?
The necessary documents to start a nonprofit in North Dakota include articles of incorporation, documents pertaining to the purpose of the nonprofit, and a statement of the nonprofit’s activities.
Is there a filing fee to start a nonprofit in North Dakota?
Yes, the filing fee to start a nonprofit in North Dakota is $100.
Do I need to register with the state of North Dakota to start a nonprofit?
Yes, you need to register with the North Dakota Department of Commerce in order to start a nonprofit.
What are the legal requirements for a nonprofit in North Dakota?
The legal requirements for a nonprofit in North Dakota include filing articles of incorporation, obtaining an Employer Identification Number (EIN), and registering with the North Dakota Department of Commerce.
Are there any special tax requirements for nonprofits in North Dakota?
Yes, nonprofits in North Dakota must file a tax return each year and pay taxes on any income they receive.
Does a nonprofit in North Dakota need to have a board of directors?
Yes, a nonprofit in North Dakota needs to have at least three board members who are responsible for the organization’s governance.
What are the qualifications to serve on a nonprofit board in North Dakota?
To serve on a nonprofit board in North Dakota, a person must be of legal age and have knowledge or experience related to the purpose of the nonprofit.
Are there any state fundraising requirements for nonprofits in North Dakota?
Yes, nonprofits in North Dakota must register with the North Dakota Attorney General’s office prior to engaging in any fundraising activities.
Does a nonprofit in North Dakota need to have a registered agent?
Yes, a nonprofit in North Dakota needs to have a registered agent to accept legal documents on behalf of the organization.
Does a nonprofit in North Dakota need to obtain any local permits or licenses?
Yes, a nonprofit in North Dakota may need to obtain local permits or licenses, depending on the activities of the organization.
Does a nonprofit in North Dakota need to keep records of its income and expenses?
Yes, a nonprofit in North Dakota must keep records of its income and expenses in order to comply with state and federal regulations.
What is required to form a nonprofit corporation in North Dakota?
To form a nonprofit corporation in North Dakota, you must file Articles of Incorporation with the Secretary of State, pay the filing fee, and provide the required information and documents.
How do I obtain a federal tax exemption for my nonprofit in North Dakota?
To obtain a federal tax exemption, you must submit an application to the Internal Revenue Service (IRS).
How do I register my nonprofit with the North Dakota Secretary of State?
To register your nonprofit with the North Dakota Secretary of State, you must file a completed registration form and pay the required fee.
Does my North Dakota nonprofit need a business license?
Depending on the type of activities your nonprofit engages in, it may be required to obtain a business license from the state.
What are the requirements to maintain a nonprofit in North Dakota?
To maintain a nonprofit in North Dakota, you must comply with all state and federal laws, file an annual report with the Secretary of State, and pay any necessary taxes and fees.
What are the reporting requirements for a North Dakota nonprofit?
A North Dakota nonprofit must file an annual report with the Secretary of State, and may also be required to file an annual report with the IRS.
Is there a fee to form a nonprofit in North Dakota?
Yes, there is a filing fee to form a nonprofit corporation in North Dakota.
Is there a fee to register a nonprofit with the North Dakota Secretary of State?
Yes, there is a fee to register a nonprofit with the North Dakota Secretary of State.
What is the deadline to file an annual report for a North Dakota nonprofit?
The deadline to file an annual report for a North Dakota nonprofit is April 15th of each year.
How do I make sure my North Dakota nonprofit is in compliance with state and federal laws?
To make sure your North Dakota nonprofit is in compliance, you should periodically review all applicable laws and regulations, and consult with an attorney if necessary.
Is there a tax exemption for charitable organizations in North Dakota?
Yes, charitable organizations in North Dakota may be eligible for a state tax exemption.
What other organizations do I need to register with when forming a nonprofit in North Dakota?
Depending on the type of activities your nonprofit engages in, you may need to register with other organizations such as the IRS, the North Dakota Department of Revenue, and the North Dakota Department of Labor and Human Rights.
Are there any restrictions on the activities of a North Dakota nonprofit?
Yes, nonprofits in North Dakota must comply with all applicable state and federal laws and regulations.
What documentation is required to form a North Dakota nonprofit?
To form a North Dakota nonprofit, you must submit Articles of Incorporation, a federal tax exemption application, and any other necessary documentation.
What is the difference between a 501(c)(3) and a 501(c)(4) organization in North Dakota?
A 501(c)(3) organization is a nonprofit that is exempt from federal income tax, while a 501(c)(4) organization is a nonprofit that is not exempt from federal income tax.
Are there special rules for nonprofits that engage in political activities in North Dakota?
Yes, nonprofits that engage in political activities in North Dakota must comply with all applicable state and federal laws and regulations.
What is the best way to raise funds for my North Dakota nonprofit?
The best way to raise funds for your North Dakota nonprofit is to explore all available options, including grants, individual donations, fundraisers, and corporate partnerships.
What are the rules for using charitable donations in North Dakota?
Charitable donations in North Dakota must be used for the specific purpose for which they were given and must be used in compliance with all applicable laws and regulations.
What steps should I take to protect my nonprofit from potential legal issues in North Dakota?
To protect your nonprofit from potential legal issues in North Dakota, you should consult with an attorney, obtain necessary business licenses, and ensure that all activities of the nonprofit comply with all applicable laws and regulations.
Can I start a nonprofit in North Dakota without incorporating?
No, you must incorporate your nonprofit in North Dakota in order to obtain a federal tax exemption and register with the Secretary of State.

Also Read

Why North Dakota Nonprofit Corporation is So Important

One of the main reasons why North Dakota’s Nonprofit Corporation is so important is their ability to address social issues and advocate for change. These organizations can provide a voice for those who may not have one, whether it be the homeless, the environment, or any other issue that needs attention. By bringing attention to these matters, nonprofits are able to influence policy decisions and create positive change in the community. They offer a platform for advocacy and mobilization, helping individuals and communities come together to fight for what they believe in.

Nonprofit organizations also provide vital services to those in need. Whether it is through food banks, homeless shelters, mental health services, or any other type of support, nonprofits are there to offer a helping hand when it is needed most. Without these organizations, many individuals and families would be left without critical services and support that can truly make a difference in their lives. By filling these essential gaps in services, nonprofits can address the root causes of social problems and ensure that everyone has access to the support they need to thrive.

Furthermore, North Dakota’s Nonprofit Corporation plays a key role in fostering community development and bringing people together. These organizations often act as a hub for community engagement and social change, providing opportunities for individuals to come together, volunteer, network, and make a difference. By creating a sense of belonging and connection, nonprofits can help build strong, vibrant communities that are able to address challenges and achieve common goals. They foster a sense of collective responsibility and ownership, encouraging individuals to work together towards a shared vision for a better future.

Additionally, nonprofits in North Dakota provide invaluable resources and support for local businesses and entrepreneurs. By offering funding opportunities, mentorship programs, and networking events, nonprofits can help small businesses grow and scale, fostering economic development and job creation. These organizations can also serve as a bridge between the private and public sectors, bringing together different stakeholders to find collaborative solutions to complex problems. By supporting local businesses, nonprofits help boost the overall economic vitality of North Dakota, ensuring that communities thrive and prosper.

In conclusion, North Dakota’s Nonprofit Corporation plays a critical role in addressing social issues, providing essential services, fostering community development, and supporting local businesses. These organizations are a vital part of the fabric of society, helping to build stronger, more resilient communities that are able to address challenges and achieve common goals. It is essential that we continue to support and empower nonprofits in North Dakota, as they are truly making a difference in the lives of individuals and the overall well-being of the community.

Conclusion

Starting a nonprofit corporation in North Dakota is an incredible way to give back to your community and positively impact the causes that matter most to you. By forming a nonprofit, you can provide essential services, promote awareness, and make a lasting difference in the lives of those who need it most. In North Dakota, a lot of nonprofit organizations are there to cater to people in need. Starting a nonprofit corporation is better than an LLC, as it provides limited liability and tax benefits. It helps you save taxes. If you want to start a nonprofit in North Dakota, you must follow the steps mentioned above in the article.

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