How to Start a Nonprofit in Kansas


Steve Goldstein
Steve Goldstein
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Start a Nonprofit in Kansas

Are you looking to start a nonprofit in Kansas? You’ve come to the right place. Known for its vibrant community and rich culture, Kansas (often referred to as The Sunflower 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 Kansas’s motto, “To the stars through difficulties (Ad astra per aspera),” thousands of nonprofits are founded within the state each year. This article will provide a comprehensive guide to starting your own nonprofit corporation in Kansas. 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 Kansas, we encourage you to read this article in its entirety.

What is a Nonprofit in Kansas?

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 Kansas, 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 Kansas

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 Kansas 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 Kansas might be eligible for tax exemptions (check with Kansas Department of Revenue), but this type of organization does not get to enjoy limited liability and personal asset protection.

How to Start a Nonprofit Corporation in Kansas

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 Kansas 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 Kansas 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 120 days 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 One unrelated directors to start the organization. If you don’t choose a minimum of One directors, it will automatically become a member-managed corporation.

Step 3: Appoint Your Kansas Registered Agent

The third step is to get a Kansas 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 Kansas.

Step 4: Write Kansas 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 Kansas state law. It is similar to an LLC operating agreement in Kansas for the LLC owners.

Step 5: File the Kansas Articles of Incorporation

This is the most important step. File your Articles of Incorporation with the Kansas Secretary of State. You can do it through two ways, online and by mail. All the formation forms, such as the Kansas LLC Articles of Organization form, the Kansas Articles of Incorporation form for corporations, forms for LLPs, and all others can be found on the Kansas 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 $90 for filing online and by mail to the Kansas Office of the Secretary of State, Memorial Hall, 1st Floor, 120 S.W. 10th Avenue, Topeka, KS 66612 or upload it online (if available).

Step 6: Obtain Tax ID for Your Kansas 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 Kansas

The next step is to get the business licenses you need to run your nonprofit organization in Kansas. 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 Kansas, you must apply for the tax exemption to Kansas 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 Pub. KS-1520 Form to apply for the state tax exemption. Read Kansas classification of taxes to learn more about the Kansas tax structure.

Step 10: Get Insurance for Your Kansas 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 Kansas Insurance Department for more information.

After Forming Your Kansas 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 Kansas. 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 Kansas

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

  • Unbound. Kansas City
  • B&C Equine Rescue Inc.
  • Carbondale
  • Fundamental Learning Center Inc.
  • Variety Children’s Charity of Greater Kansas City.
  • L M Alcott Art Center Foundation.
  • Star of Hope International America Inc.
  • Shirley Ann Sullivan Educational Foundation.
  • Freeman Arabian Ranch And Rescue.

FAQs

What are the steps for starting a nonprofit in Kansas?
The steps for starting a nonprofit in Kansas include
What is the filing fee for a nonprofit in Kansas?
The filing fee for a nonprofit in Kansas is $90.
Do I need to register my nonprofit in Kansas?
Yes, you must register your nonprofit in Kansas with the Secretary of State.
What documents do I need to register my nonprofit in Kansas?
You must submit the Articles of Incorporation, the Organization Report, and the filing fee to the Kansas Secretary of State to register your nonprofit.
Do I need a Kansas registered agent for my nonprofit?
Yes, you must have a registered agent in Kansas to register your nonprofit.
What is the process for obtaining tax exemption in Kansas?
The process for obtaining tax exemption in Kansas involves filing Form AR-11 with the Kansas Department of Revenue and submitting a copy of the Articles of Incorporation to the IRS.
Do I need to file an annual report in Kansas?
Yes, you must file an annual report with the Kansas Secretary of State each year.
What is the deadline for filing my annual report in Kansas?
The due date for filing the annual report in Kansas is April 15 of each year.
Are there any special rules for fundraising in Kansas?
Yes, nonprofits in Kansas must comply with the Kansas Charitable Organizations and Solicitations Act.
Is there a registration fee for fundraising in Kansas?
Yes, there is a $30 registration fee for fundraising in Kansas.
Is there a limitation on the amount of money a nonprofit can raise in Kansas?
Yes, there is a limitation on the amount of money a nonprofit can raise in Kansas. The limitation is $25,000 per year.
What taxes does a nonprofit owe in Kansas?
Nonprofits in Kansas owe state income, sales, and property taxes.
Are there any special filing requirements for nonprofits in Kansas?
Yes, nonprofits in Kansas must file Form K-120 with the Kansas Department of Revenue each year.
Is there a state sales tax exemption for nonprofits in Kansas?
Yes, nonprofits in Kansas may apply for a sales tax exemption from the Kansas Department of Revenue.
What is the minimum number of board members required for a nonprofit in Kansas?
The minimum number of board members required for a nonprofit in Kansas is three.
Is there a minimum age requirement for board members in Kansas?
Yes, board members in Kansas must be at least 18 years old.
Is there a minimum salary requirement for executive directors in Kansas?
No, there is no minimum salary requirement for executive directors in Kansas.
Is there a limit to the amount of lobbying a nonprofit can do in Kansas?
Yes, nonprofits in Kansas are limited to 20% of their total activity being lobbying related.
What is the process for obtaining a liquor license in Kansas?
The process for obtaining a liquor license in Kansas involves completing an application, submitting a fee, and attending a hearing.
Are there any special laws or regulations for nonprofits in Kansas?
Yes, nonprofits in Kansas must comply with the Kansas Nonprofit Corporation Act, the Kansas Charitable Organizations and Solicitations Act, and other applicable laws and regulations.
What is the process for amending the Articles of Incorporation in Kansas?
The process for amending the Articles of Incorporation in Kansas involves filing an amendment with the Secretary of State and obtaining approval from the Board of Directors.
Are there any restrictions on the names of nonprofits in Kansas?
Yes, nonprofits in Kansas must have a unique name that is not already in use by another entity.
Are there any restrictions on the use of funds for a nonprofit in Kansas?
Yes, nonprofits in Kansas must use funds for their charitable purpose as described in the Articles of Incorporation.
Is there any liability protection for board members in Kansas?
Yes, board members in Kansas are generally immune from personal liability for their actions in their capacity as board members.
Can a nonprofit in Kansas engage in political activities?
Yes, nonprofits in Kansas may engage in political activities, but those activities must be non-partisan and cannot be used to directly support or oppose a candidate for public office.
Is there a reporting requirement for donations to nonprofits in Kansas?
Yes, nonprofits in Kansas must report all donations of $500 or more to the Kansas Department of Revenue.
Is there a minimum amount of money a nonprofit must have in its bank account in Kansas?
No, there is no minimum amount of money a nonprofit must have in its bank account in Kansas.
Are there any special rules for selling merchandise in Kansas?
Yes, nonprofits in Kansas must comply with the Kansas Sales Tax Act when selling merchandise.
What are the steps to starting a nonprofit in Kansas?
The steps to creating a nonprofit in Kansas include developing a mission statement, filing the organizational documents with the Kansas Secretary of State, obtaining a federal employer identification number (EIN) from the IRS, registering with the Kansas Department of Revenue, and creating a board of directors.
Is it necessary to have a lawyer to start a nonprofit in Kansas?
While it is not legally required, it is strongly recommended to seek the advice of an experienced attorney when forming a nonprofit in Kansas.
What is the filing fee for the Articles of Incorporation for a nonprofit in Kansas?
The filing fee for the Articles of Incorporation for a nonprofit in Kansas is $20.
Does a nonprofit in Kansas need to file annual reports?
Yes, all nonprofit organizations in Kansas must file an annual report with the Secretary of State every year.
Are there any tax exemptions available for a nonprofit in Kansas?
Yes, nonprofit organizations in Kansas are exempt from state income tax and property tax.

Also Read

Why Kansas Nonprofit Corporation is So Important

One of the primary reasons why nonprofit corporations are so vital in Kansas is their ability to address specific issues and needs that may not be adequately met by the government or for-profit businesses. These organizations are often mission-driven, focusing on everything from providing housing and food assistance to supporting education and promoting the arts. By honing in on specific areas of need, nonprofit corporations in Kansas can tailor their services to meet the unique challenges facing their communities.

Another critical aspect of nonprofit corporations in Kansas is their ability to mobilize resources and volunteers to make a difference. With a strong sense of community and dedication to social good, these organizations are often able to bring together individuals and businesses to support their mission. By harnessing the power of volunteers and philanthropic donations, nonprofit corporations in Kansas can expand their reach and impact, benefiting even more individuals in need.

Moreover, nonprofit corporations in Kansas serve as a voice for marginalized communities and advocate for positive change. These organizations work tirelessly to address social injustices, advocate for policy changes, and promote awareness of important issues affecting their communities. By amplifying the voices of those who may not have a platform of their own, nonprofit corporations in Kansas can effect real change and push for a more equitable society.

Nonprofit corporations in Kansas also play a crucial role in fostering innovation and creativity within their communities. By supporting the arts, education, and environmental initiatives, these organizations can inspire new ideas, spark conversation, and drive progress. Through their commitment to creative expression and experimentation, nonprofit corporations in Kansas help to build a more vibrant and dynamic community for all residents.

In addition to their direct services and advocacy work, nonprofit corporations in Kansas also contribute to the overall economic health of the state. By creating jobs, stimulating local economies, and providing valuable services, these organizations help to strengthen communities and build a more robust and resilient society. Their presence fosters a sense of community pride and unity, bringing individuals together in pursuit of a common goal.

Overall, nonprofit corporations in Kansas are an essential part of the social fabric, promoting positive change, providing crucial services, and driving community development. Their dedication to the greater good, unwavering commitment to social justice, and tireless efforts to make a difference highlight the critical role these organizations play in the state. By supporting nonprofit corporations in Kansas, we can all contribute to a more vibrant, equitable, and inclusive society for all residents.

Conclusion

Starting a nonprofit corporation in Kansas 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 Kansas, 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 Kansas, you must follow the steps mentioned above in the article.

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