How to Start a Nonprofit Organization in Indiana 2025


Steve Bennett
Steve Bennett
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Start a Nonprofit in Indiana

Establishing a nonprofit is kind of similar to forming a corporation in Indiana. You can easily start a nonprofit in Indiana as a limited liability company, a corporation, or any other type of business structure. Unlike for-profit businesses, nonprofits focus on addressing pressing social issues than profit-oriented businesses.

This article will guide you through the Dos and Don’ts of starting a nonprofit in Indiana. LLCBuddy editors explain all the steps you must follow to form a corporation for your nonprofit organization. It must be noted that this page shared generalized steps to form a nonprofit in Indiana. It is recommended to consult an attorney or hire a professional service.

What is a Nonprofit in Indiana

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 Indiana, ensure you have a community issue to address before 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 Indiana

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

BOI Report Filing

According to the Corporate Transparency Act, every LLC, corporation, and other type of business that is registered with the Indiana SOS or similar authority, must file the BOI report with FinCEN. From January 1, 2024, it is mandatory to file a BOI report for every business entity. In this report, LLCs have to share information about the beneficial owners (having equal or more than 25% share). LLC owners can file BOI reports online or offline.

Businesses in Indiana that are created before January 1, 2024, should file their BOI report by January 1, 2025. Businesses that are created in 2024, must file the BOI report within 90 business days of finishing the formation process. Missing out on filing the BOI report may lead to a monetary penalty of $500/day.

How to Start a Nonprofit in Indiana

Nonprofits are certainly different from for-profit organizations. The main focus of the organization is on social values rather than profit. The process of having a nonprofit in Indiana is similar to forming any corporation in Indiana. However, there are a few additional steps to follow.

Step 1: Develop Your Mission and Vision

Before you get into legal details, you need to define the purpose and goal of your organization clearly; this will go a long way in guiding your decisions as well as making it easy for you to explain your mission statement.

  • Pick out what specific cause or issue you want to address;
  • Define who you will target or help reach particular goals;
  • List down both what people should do within a short period and what they should achieve in the long term perspective;
  • Write a captivating mission statement.

Step 2: Name Your Nonprofit in Indiana

Naming a business in Indiana has a handful of regulations. If you start a corporation or an LLC in Indiana, you must follow those regulations to name your nonprofit. The most important rule is to check if the name is available in Indiana to use.

If you’re forming an LLC in Indiana for your nonprofit organization, check out LLC naming guidelines in Indiana. For the corporation regulations, read on how to start a corporation in Indiana. As soon as the name is decided, you can reserve it with the Indiana Secretary of State. You can also file DBA in Indiana before you establish your nonprofit organization. DBA can be filed in two methods, by mail and in person. The DBA filing fee in Indiana is $35.

  • Online DBA Filing: There is no online filing available
  • Offline DBA Filing: For filing offline, you must send the downloaded PDF form or drop it off in person at the Marion County Recorder’s Office, 200 E. Washington Street, Suite T-741, Indianapolis, IN 46204
  • DBA Renew Time in Indiana: Indefinite

Step 3: Appoint Initial Board Members

If you’re forming a corporation for your Indiana nonprofit, it is required to appoint the initial board members. In Indiana, 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 4: Get Indiana Registered Agent

This is a very important step for any business in Indiana. The Registered Agent in Indiana is a person who conducts all types of documentation between the State and your nonprofit organization. The Registered Agent must be from Indiana, above 18 years of age, and must have legal rights to conduct business in the state. Several professional and business formation services offer registered agent services in all the states in the USA. It is better to hire a professional rather than being your own Registered Agent in Indiana.

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Step 5: File Articles of Incorporation with Indiana SOS

This is the most important step in forming a nonprofit corporation in Indiana. File your Articles of Incorporation with the Indiana Secretary of State. You can file your nonprofit corporation through two ways, online and by mail. 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.

  • Online Incorporation: Create an account/Log in to the SOS site, get the online form, fill it, and submit online
  • Offline Incorporation: Send the form by mail to Department of Secretary of State Business Services Division, 302 West Washington Street, Room E018, Indianapolis, IN 46204
  • Incorporation Fee in Indiana: $30 for filing online and by mail

Hiring a professional service might be a wise idea here. Having a corporation is much more complex than forming an LLC. We recommend ZenBusiness as they are one of the top business service providers currently. They offer LLC formation at $0 in Indiana.

Step 5.1: Write Company Bylaws

As soon as you file the formation documents, it is time for 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 Indiana state law. It is similar to an LLC operating agreement in Indiana for the LLC owners.

Step 6: Get an EIN in Indiana

The next step is to obtain the EIN in Indiana. The employer identification number (EIN) is required to conduct business in Indiana. You will need to acquire the Indiana 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: Tax Exemptions for Your Nonprofit

When you start a nonprofit in Indiana, you enjoy tax exemptions. As the nonprofits are not profit-oriented, they get a huge tax exemption from Federal and State authorities.

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.

State Tax Exemption

Once you get the Federal Tax Exempt, it is time for State Tax Exempt. In Indiana, you must apply for the tax exemption to the Indiana Department of Revenue. 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 an Exemption Certificate to apply for the state tax exemption. Read Indiana classification of taxes to learn more about the Indiana tax structure.

Can I form an LLC for my Nonprofit in Indiana?

Yes, you can form an LLC in Indiana to run a nonprofit. Establishing an LLC nonprofit in Indiana requires similar documents and paperwork. Except for tax exemption applications that one must file with the state tax and revenue department. LLCs must file Form 1023 with the Indiana Department of Revenue to get the tax exemption.

After You Form a Nonprofit Corporation in Indiana

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

  • Get necessary licenses: As soon as your corporation or an LLC for your Nonprofit in Indiana will be established, get necessary licenses and permits. Check with the local authority/government to get the local permits.
  • Get Insurance for the Indiana Nonprofit: 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.
  • Get a Business Bank Account: You must get a business account for all types of business-related transactions in Indiana. 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.
  • Evaluating And Improving Performance: To evaluate the performance of your non-profit organization, it is necessary to; establish performance metrics also tied to the mission; and implement continuous improvement strategies.
  • Staying Current With Nonprofit Trends And Best Practices: To stay up-to-date on trends and best practices in the non-profit world you should join nonprofit associations plus networks.

Common Challenges And How To Address Them

  • Funding Sustainability

For funding sustainability issues you need to focus on diversifying funding sources and developing strong relationships with donors. Also, implementing efficient financial management, exploring earned income opportunities for sustainability, and such should be on focus.

  • Volunteer Management

The challenges faced in volunteer management can be resolved by creating clear roles plus expectations for volunteers, and providing adequate training also support. Recognize and appreciate volunteer contributions while implementing volunteer retention strategies such as offering regular appreciation events or awards. Provide trainers’ placement services too.

  • Mission Drift

This problem can be solved by several mechanisms such as regular review and reaffirmation of your organizational mission–this will ensure that all activities are aligned with the core purpose. Educate board members and staff about the importance of the mission and make them understand how this works out in practice. Implement a strategic planning process and explain to the board why it is important for their organizations to have a well-defined mission.

  • Regulatory Compliance

To remain compliant with the law, you need to: keep track of changing laws and regulations all the time; conduct regular compliance audits; seek professional advice when in doubt; and implement comprehensive record-keeping systems.

Names of Nonprofit Corporations in Indiana

Following are some of the Nonprofit Organizations in Indiana. The contact information of these organizations can be found on Indiana Secretary of State portal.

  • Mission Guatemala Inc.
  • Happy Hollow Children’s Camp Inc.
  • National FFA Organization
  • Pet Friendly Services of Indiana
  • Paws and Think Inc.
  • Obat Helpers Inc.
  • Art With A Heart
  • Bikersinc.

FAQs

What are the steps to incorporating a nonprofit in Indiana?
The steps include drafting articles of incorporation, filing with the Indiana Secretary of State, and obtaining federal tax-exempt status from the IRS.
How long does it typically take to incorporate a nonprofit in Indiana?
It can take a few weeks to a few months, depending on the complexity of the organization and the backlog at the Secretary of State’s office.
Do I need to have a physical address in Indiana to start a nonprofit there?
Yes, Indiana law requires nonprofit organizations to have a registered office in the state.
What are the filing fees for incorporating a nonprofit in Indiana?
The filing fee for incorporating a nonprofit in Indiana is $30, as of the time of this response.
How do I file for federal tax-exempt status for my nonprofit in Indiana?
You can file IRS Form 1023 or 1023-EZ, along with the required documentation, once you have incorporated your nonprofit in Indiana.
Are there any specific fundraising regulations in Indiana for nonprofits?
Yes, Indiana requires nonprofit organizations to register with the state’s Attorney General’s office before conducting fundraising activities.
Can I form a nonprofit in Indiana if I am not a resident of the state?
Yes, you can incorporate a nonprofit in Indiana even if you are not a resident of the state.
What is the process for dissolving a nonprofit in Indiana?
The process for dissolving a nonprofit in Indiana typically involves filing articles of dissolution with the Secretary of State and settling any outstanding debts or obligations.
Are there any annual reporting requirements for nonprofits in Indiana?
Yes, Indiana requires nonprofits to file an annual report with the Secretary of State, along with any necessary fees.
Can a nonprofit in Indiana make a profit?
Yes, nonprofits in Indiana can generate revenue and make a profit as long as the funds are used to further the organization’s mission and not for personal gain.
What are the advantages of starting a nonprofit in Indiana?
Indiana offers tax exemptions for nonprofits, access to grant funding, and a supportive nonprofit community.
Can I convert an existing for-profit business into a nonprofit in Indiana?
Yes, you can convert an existing for-profit business into a nonprofit in Indiana by following the legal requirements for incorporating a nonprofit organization.
Is there a minimum number of people required to start a nonprofit in Indiana?
No, Indiana does not have a minimum requirement for the number of people needed to start a nonprofit organization.
Can I pay myself a salary as the founder of a nonprofit in Indiana?
Yes, as long as the salary is reasonable and in line with industry standards for similar positions.
Are there specific rules for naming a nonprofit in Indiana?
Yes, nonprofits in Indiana must choose a name that is not already in use and that complies with state laws regarding misleading or deceptive names.
Is there a limit on how much money a nonprofit can hold in reserves in Indiana?
There is no specific limit on the amount of money a nonprofit can hold in reserves in Indiana, but excess reserves should be used for charitable purposes.
Can a nonprofit in Indiana engage in political activities?
Yes, nonprofits in Indiana can engage in some limited political activities, but they must be careful to remain nonpartisan and comply with federal tax laws.
Can I start a nonprofit in Indiana if I have a criminal record?
Having a criminal record does not necessarily disqualify you from starting a nonprofit in Indiana, but it may be a factor in the approval process.
Are there specific requirements for board members of nonprofits in Indiana?
Indiana does not have specific requirements for board members of nonprofits, but they are typically expected to act in the best interests of the organization.
How can I find funding for my nonprofit in Indiana?
You can search for grants, solicit donations, host fundraising events, and apply for government funding to support your nonprofit in Indiana.
Can a nonprofit in Indiana own property?
Yes, nonprofits in Indiana can own property, but they must use it for charitable purposes and may be subject to property tax exemptions.
What is the difference between a 501(c)(3) and other types of nonprofits in Indiana?
A 501(c)(3) is a specific type of nonprofit that is tax-exempt and allows donors to make tax-deductible contributions. Other types of nonprofits may have different tax benefits or limitations.
Can a nonprofit in Indiana sell goods or services?
Yes, nonprofits in Indiana can sell goods or services as long as the income generated is used to further their charitable mission.
Do I need to have a board of directors to start a nonprofit in Indiana?
Indiana law requires nonprofits to have a board of directors responsible for overseeing the organization’s activities.
Are there specific requirements for submitting financial reports for nonprofits in Indiana?
Yes, nonprofits in Indiana are required to maintain accurate financial records and may be required to submit audited financial statements to the state.
How can I attract volunteers to work for my nonprofit in Indiana?
You can recruit volunteers through online platforms, community events, and outreach efforts to support your nonprofit’s mission in Indiana.
Can a nonprofit in Indiana engage in commercial activities?
Nonprofits in Indiana can engage in commercial activities as long as the income generated is used to further their charitable mission.
What resources are available for starting a nonprofit in Indiana?
Resources available for starting a nonprofit in Indiana include support from the Secretary of State’s office, local nonprofit organizations, and online guides and tutorials specific to Indiana law.
What are the steps to starting a nonprofit in Indiana?
To start a nonprofit in Indiana, you need to establish a mission, choose a name, draft bylaws, file articles of incorporation with the Indiana Secretary of State, and apply for tax-exempt status with the IRS.
How long does it take to start a nonprofit in Indiana?
The timeline for starting a nonprofit in Indiana can vary, but it typically takes several months to complete all the necessary paperwork and obtain tax-exempt status.

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In Conclusion

Starting a Nonprofit corporation in the Indiana takes careful thought, dedication, and detailing. Follow the steps detailed in this guide while addressing common challenges so that your organization can be built on solid ground and make a long-lasting impact on your cause. Remember also that running a nonprofit organization in Indiana is a perpetual learning, adapting, and growing process.

As you continue your journey, you may need professional help. Having a professional or experienced person, or attorneys while you run your nonprofit in Indiana can make the journey much simpler in the long run. Since forming a nonprofit involves tax exemptions, the government takes additional care to verify your background.

Donations, charity, and several community services are the most desirable ways to evade tax. Hence, many people get involved in nonprofit organizations. It is recommended to consult a legal professional, accountants, and service providers like ZenBusiness for the paperwork and formation process. With persistence, passion, and proper management structure everything is possible hence changing positively your community as far as Non-Profit corporations are concerned.

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