Nonprofit Set Up Made Simple For Beginners

VIDEO TRANSCRIPTION – Nonprofit set up made simple for beginners. Hi, I’m Steven D. Cooper, your tax strategist with Coopers Accounting Service, because your financial freedom matters.

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There are basically three common setups or procedures that you need to do to set up a nonprofit. in the state of California, there’s a fourth one that I’m going to explain as well to. Number one, you need to incorporate yourself. So that means you need to register your nonprofit more than likely for public benefit. 

Number two, you need to get your EIN number and you need to complete a form called 1023. In this form, there’s a long for long version of this form and a short version of this form. It’s all predicated based upon the revenue that your nonprofit is going to be receiving. For example, if it’s over $10,000, then you’re going to be doing the long form.

Next step, In the state of California in this example, you need to complete what’s called a 3400. There’s a 3400 long form. If you do not have approval from the IRS yet, if you do have approval from the IRS, you complete Form 3500A, which is the short form.

The additional step, and once again, this is state by state. In California, you have to register with the Attorney General’s office. You need to get something that’s called a CT number. What is a CT number? It means charitable trust number.

What does this do? Let’s say that you are registering a fundraising event and you are hiring an outside company to as a contractor. The Attorney General’s office should have their information on file and they do a background check to verify that this company is legitimate as a result of this.

So it helps clients not hire someone for fraudulent purposes as a result of this. So, with that said and done.

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