How to Start a Nonprofit in New Hampshire

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

What is a Nonprofit in New Hampshire?

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 New Hampshire, 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 New Hampshire

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

How to Start a Nonprofit Corporation in New Hampshire

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 New Hampshire 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 New Hampshire 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 Five unrelated directors to start the organization. If you don’t choose a minimum of Five directors, it will automatically become a member-managed corporation.

Step 3: Appoint Your New Hampshire Registered Agent

The third step is to get a New Hampshire 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 New Hampshire.

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

Step 5: File the New Hampshire Articles of Incorporation

This is the most important step. File your Articles of Incorporation with the New Hampshire Secretary of State. You can do it through three methods that are online, by mail and in-person. All the formation forms, such as the New Hampshire LLC Certificate of Formation form, the New Hampshire Articles of Incorporation form for corporations, forms for LLPs, and all others can be found on the New Hampshire 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 filing online, by mail, or in person to the Corporation Division, NH Dept. of State, 107 N Main St, Rm 204, Concord, NH 03301 or upload it online (if available).

Step 6: Obtain Tax ID for Your New Hampshire 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 New Hampshire

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

Step 10: Get Insurance for Your New Hampshire 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 New Hampshire Insurance Department for more information.

After Forming Your New Hampshire 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 New Hampshire. 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 New Hampshire

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

• Hampstead Charities
• Hampton Charities
• Hanover Charities
• Henniker Charities
• Hillsboro Charities
• Hollis Charities
• Hooksett Charities
• Hudson Charities.

FAQs

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Why New Hampshire Nonprofit Corporation is So Important

One of the primary reasons why the New Hampshire Nonprofit Corporation is so essential lies in its ability to bridge gaps left unfilled by government and for-profit entities. These organizations have the flexibility and empathy to respond quickly to emergent needs and are often able to form a deep connection with the communities they serve. Furthermore, nonprofits can often operate in ways that are less constrained by profit motives, allowing them to focus on the well-being of individuals and the environment instead of financial gain.

Nonprofits within New Hampshire also contribute to the economic vitality of the state. By providing essential services, creating employment opportunities, and fostering community engagement, these organizations help to strengthen the local economy and create a more resilient infrastructure. They attract talented individuals who are passionate about making a difference and contribute to the overall growth and development of the region.

Moreover, the New Hampshire Nonprofit Corporation plays an essential role in promoting social change and advocacy. These organizations often serve as advocates for underserved communities, pushing for policies that promote equity and justice. By bringing about awareness, education, and policy change, nonprofits are able to effect meaningful and lasting change in the landscape of opportunity and equality within the state.

Nonprofits also serve as incubators for innovation and drive creative solutions to complex societal issues. Through partnerships with businesses, government agencies, and other nonprofits, these organizations are able to implement collaborative strategies and leverage resources to maximize impact. Nonprofits within New Hampshire are actively engaged in finding new ways to tackle old problems and continuously seek out opportunities for improvement and growth.

The presence of the New Hampshire Nonprofit Corporation is critical to fostering a sense of community and connection among residents. By offering opportunities for volunteerism, civic engagement, and participation in worthy causes, nonprofits create a sense of solidarity that transcends geographical, social, and economic boundaries. They provide a platform for individuals to come together, share experiences, and work towards a common goal of building a stronger, more connected society.

In conclusion, the New Hampshire Nonprofit Corporation is indispensable in its ability to foster positive change, promote equity, and empower communities. These organizations exemplify the values of compassion, empathy, and dedication to the greater good, serving as beacons of hope and progress within the state. The impact of nonprofits on society cannot be overstated, and their continued presence and support are essential for the well-being and prosperity of all New Hampshire residents.

Conclusion

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