How to Start a Nonprofit in Nebraska


Steve Goldstein
Steve Goldstein
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Start a Nonprofit in Nebraska

Are you looking to start a nonprofit in Nebraska? You’ve come to the right place. Known for its vibrant community and rich culture, Nebraska (often referred to as The Cornhusker 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 Nebraska’s motto, “Equality before the law,” thousands of nonprofits are founded within the state each year. This article will provide a comprehensive guide to starting your own nonprofit corporation in Nebraska. 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 Nebraska, we encourage you to read this article in its entirety.

What is a Nonprofit in Nebraska?

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 Nebraska, 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 Nebraska

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 Nebraska 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 Nebraska might be eligible for tax exemptions (check with Nebraska 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 Nebraska

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 Nebraska 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 Nebraska 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 Nebraska Registered Agent

The third step is to get a Nebraska 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 Nebraska.

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

Step 5: File the Nebraska Articles of Incorporation

This is the most important step. File your Articles of Incorporation with the Nebraska Secretary of State. You can do it through two method that is filing online, or in-office. All the formation forms, such as the Nebraska LLC Certificate of Organization form, the Nebraska Articles of Incorporation form for corporations, forms for LLPs, and all others can be found on the Nebraska 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 $30 for in office filing and $25 for online filing to the Robert B. Evnen, Secretary of State, P.O. Box 94608, Lincoln, NE 685098. or upload it online (if available).

Step 6: Obtain Tax ID for Your Nebraska 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 Nebraska

The next step is to get the business licenses you need to run your nonprofit organization in Nebraska. 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 Nebraska, you must apply for the tax exemption to Nebraska 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 Form – 13 to apply for the state tax exemption. Read Nebraska classification of taxes to learn more about the Nebraska tax structure.

Step 10: Get Insurance for Your Nebraska 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 Nebraska Department of Insurance for more information.

After Forming Your Nebraska 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 Nebraska. 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 Nebraska

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

  • Plattsmouth Charities
  • Ralston Charities
  • Ravenna Charities
  • Red Cloud Charities
  • Roca Charities
  • Schuyler Charities
  • Scottsbluff Charities
  • Seward Charities.

FAQs

What are the steps for starting a nonprofit in Nebraska?
To start a nonprofit in Nebraska, you must first create a board of directors, develop a mission statement and purpose, select a name and obtain a federal employer identification number. Next, you must file articles of incorporation with the Secretary of State’s office, apply for 501(c)(3) tax-exempt status, register with the Nebraska Department of Revenue, and obtain any necessary state licenses.
What laws do I need to know when forming a nonprofit in Nebraska?
When forming a nonprofit in Nebraska, it is important to be aware of the Nebraska Nonprofit Corporation Act, which outlines the legal requirements for formation and operation. Additionally, you should ensure that your nonprofit is compliant with all local, state and federal laws.
Who can start a nonprofit in Nebraska?
Anyone in Nebraska who is of legal age can start a nonprofit. However, it is important to note that the individuals who form the nonprofit will be held responsible for the organization’s compliance with state and federal laws.
How much does it cost to start a nonprofit in Nebraska?
The cost to start a nonprofit in Nebraska can vary, but generally includes registration fees, legal and accounting fees, and costs associated with obtaining 501(c)(3) tax-exempt status.
What paperwork is needed to form a nonprofit in Nebraska?
To form a nonprofit in Nebraska, you must file articles of incorporation with the Secretary of State’s office, obtain a federal employer identification number, and apply for 501(c)(3) tax-exempt status. Additionally, you may need to register with the Nebraska Department of Revenue and obtain any necessary state licenses.
How do I obtain 501(c)(3) tax-exempt status in Nebraska?
To obtain 501(c)(3) tax-exempt status in Nebraska, you must file an application (Form 1023 or Form 1023-EZ) with the Internal Revenue Service (IRS). You must also provide a copy of your articles of incorporation, a copy of your bylaws, and a list of the names and addresses of the board of directors.
What are the legal requirements for starting a nonprofit in Nebraska?
The legal requirements for starting a nonprofit in Nebraska include forming a board of directors, developing a mission statement and purpose, selecting a name, obtaining a federal employer identification number, filing articles of incorporation with the Secretary of State’s office, and applying for 501(c)(3) tax-exempt status. Additionally, you may need to register with the Nebraska Department of Revenue and obtain any necessary state licenses.
What fees are associated with starting a nonprofit in Nebraska?
The fees associated with starting a nonprofit in Nebraska can vary, but generally include registration fees, legal and accounting fees, and costs associated with obtaining 501(c)(3) tax-exempt status.
How long does it take to start a nonprofit in Nebraska?
The process of starting a nonprofit in Nebraska can take anywhere from a few weeks to several months, depending on how quickly you complete the necessary paperwork and obtain all the required licenses and permits.
Is it necessary to register with the Nebraska Department of Revenue?
Yes, it is necessary to register with the Nebraska Department of Revenue if you plan to solicit funds in Nebraska or receive contributions from Nebraska residents.
Are there any specific requirements for naming a nonprofit in Nebraska?
Yes, there are certain requirements for naming a nonprofit in Nebraska. The name must not be the same as, or too similar to, the name of an existing business entity, and it must include the words “corporation”, “company”, “incorporated”, or “limited”.
How do I find a lawyer to help with starting a nonprofit in Nebraska?
You can find a lawyer to help with starting a nonprofit in Nebraska by contacting the Nebraska State Bar Association or requesting a referral from a trusted lawyer or friend.
What is the legal structure of a nonprofit in Nebraska?
The legal structure of a nonprofit in Nebraska is similar to that of a for-profit corporation, but with the added requirement of filing articles of incorporation with the Secretary of State’s office and obtaining 501(c)(3) tax-exempt status.
How do I apply for grants to fund my nonprofit in Nebraska?
To apply for grants to fund your nonprofit in Nebraska, you should research grants available from local and state government agencies, as well as private organizations and foundations. Additionally, you may be able to apply for grants through the Corporation for National and Community Service.
Are there any tax benefits for nonprofits in Nebraska?
Yes, there are tax benefits for nonprofits in Nebraska. Nonprofits may be exempt from certain taxes, such as state income tax, sales tax, and property tax. Additionally, donations to a 501(c)(3) nonprofit are tax-deductible for donors.
Do I need to register my nonprofit with the Nebraska Secretary of State?
Yes, it is necessary to register your nonprofit with the Nebraska Secretary of State in order to be recognized as a legal entity in the state.
Do I need to obtain a federal employer identification number to start a nonprofit in Nebraska?
Yes, it is necessary to obtain a federal employer identification number (EIN) in order to start a nonprofit in Nebraska. An EIN is used to identify the organization for tax purposes.
Do I need to file an annual report with the Nebraska Secretary of State?
Yes, it is necessary to file an annual report with the Nebraska Secretary of State in order to maintain your nonprofit’s status as a legal entity in the state.
Is there a minimum number of board members required to start a nonprofit in Nebraska?
Yes, there is a minimum number of board members required to start a nonprofit in Nebraska. The board must have at least three members, and at least one member must be a Nebraska resident.
Is it necessary to hold annual board meetings for a nonprofit in Nebraska?
Yes, it is necessary to hold annual board meetings for a nonprofit in Nebraska in order to ensure that the organization is compliant with all state and federal laws.
Do I need to file a nonprofit tax return in Nebraska?
Yes, it is necessary to file a nonprofit tax return in Nebraska if your organization has income greater than $50,000 or assets greater than $250,000.
What are the reporting requirements for a nonprofit in Nebraska?
The reporting requirements for a nonprofit in Nebraska depend on the organization’s size and income. Generally, nonprofits must file an annual report with the Nebraska Secretary of State, an informational return with the IRS, and any necessary state or local tax returns.
Is it necessary to have a public disclosure policy for a nonprofit in Nebraska?
Yes, it is necessary to have a public disclosure policy for a nonprofit in Nebraska. This policy should outline how the organization will share information with the public, as well as the procedures for requesting information from the organization.
What does it mean to be a 501(c)(3) nonprofit in Nebraska?
A 501(c)(3) nonprofit in Nebraska is a legal entity recognized by the Internal Revenue Service as a charitable organization. This designation allows the organization to be exempt from certain taxes, as well as allowing donations to the organization to be tax-deductible for donors.
Are there any special requirements for fundraising activities in Nebraska?
Yes, there are certain requirements for fundraising activities in Nebraska. Organizations must register with the Nebraska Department of Revenue if they plan to solicit funds in the state or receive contributions from Nebraska residents.
Are there any restrictions on how nonprofit funds can be used in Nebraska?
Yes, there are certain restrictions on how nonprofit funds can be used in Nebraska. Nonprofits must ensure that all funds are used for the purpose stated in the organization’s mission statement, and that all expenditures are reasonable and necessary.
Are there any requirements for board members of a nonprofit in Nebraska?
Yes, there are certain requirements for board members of a nonprofit in Nebraska. Board members must be at least 18 years old, and at least one member must be a resident of the state. Additionally, all board members must adhere to the organization’s conflict of interest policy.
What are the steps to start a nonprofit in Nebraska?
To start a nonprofit in Nebraska, you’ll need to obtain a Certificate of Authority from the Nebraska Secretary of State, obtain an Employer Identification Number (EIN) from the Internal Revenue Service, create a governing document outlining the purpose of the organization and the responsibilities of the board of directors, register with the Nebraska Department of Revenue, and obtain any necessary licenses or permits.
What type of documents do I need to start a nonprofit in Nebraska?
To start a nonprofit in Nebraska, you’ll need a Certificate of Authority from the Nebraska Secretary of State, a governing document outlining the purpose and responsibilities of the board of directors, an Employer Identification Number (EIN) from the Internal Revenue Service, and any other required licenses or permits.
Is there a fee to start a nonprofit in Nebraska?
Yes, there is a fee of $100 to file for a Certificate of Authority from the Nebraska Secretary of State.
Do I need to register my nonprofit with the state of Nebraska?
Yes, you must register your nonprofit with the Nebraska Department of Revenue and obtain a Certificate of Authority from the Nebraska Secretary of State.
What is the filing deadline to start a nonprofit in Nebraska?
The filing deadline is typically seven business days after the application is received.
What is the application process for starting a nonprofit in Nebraska?
The application process typically requires submitting the required documents to the Nebraska Secretary of State, obtaining an Employer Identification Number (EIN) from the Internal Revenue Service, registering with the Nebraska Department of Revenue, and obtaining any necessary licenses or permits.
What is the first step to start a nonprofit in Nebraska?
The first step is to obtain a Certificate of Authority from the Nebraska Secretary of State.
Is there any help available to start a nonprofit in Nebraska?
Yes, the Nebraska Secretary of State’s office offers resources, guidance, and assistance to help you start a nonprofit in Nebraska.

Also Read

Why Nebraska Nonprofit Corporation is So Important

One of the reasons why Nebraska nonprofit corporations are so important is their focus on addressing the needs of the community. These organizations are often created to fill gaps in services or support that are not being adequately met by governmental or for-profit entities. Whether it is providing food and shelter to the homeless, offering counseling and support to individuals in crisis, or promoting cultural and artistic activities, nonprofits are often on the front lines of helping those who are most in need.

Additionally, Nebraska nonprofit corporations play a critical role in advocating for important social and environmental causes. These organizations often work tirelessly to raise awareness about issues such as poverty, environmental sustainability, and social justice, and to push for change at the local, state, and national levels. By amplifying the voices of those who may not have a platform to speak for themselves, nonprofits help to create a more equitable and just society for all.

Nonprofit organizations in Nebraska also contribute significantly to the state’s economy and overall quality of life. By supporting the arts, preserving cultural heritage, and providing educational opportunities, nonprofits help to create a vibrant and thriving community that is attractive to residents, businesses, and visitors alike. Additionally, many nonprofit corporations in the state are major employers, providing jobs and career opportunities to thousands of individuals across a wide range of fields.

Furthermore, Nebraska nonprofit corporations foster a spirit of volunteerism and civic engagement that is essential for a healthy and vibrant democracy. By offering opportunities for individuals to get involved in their communities, nonprofits help to build social connections, promote empathy and understanding, and create a sense of belonging and purpose among residents. This sense of connection and community is crucial for addressing the many challenges facing our society today and for building a more cohesive and resilient state for future generations.

In conclusion, Nebraska nonprofit corporations are a vital and indispensable part of the social fabric of the state. From addressing critical needs in the community to advocating for important causes, supporting the economy and quality of life, and fostering volunteerism and civic engagement, these organizations play a crucial role in building a stronger and more inclusive society for all. It is essential that we continue to support and celebrate the work of nonprofits in Nebraska, recognizing the tremendous impact they have on the lives of individuals and the well-being of our communities as a whole.

Conclusion

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

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