Last updated: October 21, 2025

Part 1: Your Nonprofit Operational Roadmap
From Legal Formation to Sustainable Management

Building a nonprofit is like launching a high-end architectural project. Our team at 501c3.help acts as your architects and engineers: we design the structure, secure the "building permits" (IRS & State registration), and install the "utility lines" (Google Ad Grants).

However, once the keys are handed over, the management and maintenance of the building rest with you.


🏗 1. Defining the Handover: Who Does What?

To ensure your organization remains compliant and avoids heavy fines, it is vital to understand the transition from Formation to Operations.

What We Deliver (Our Scope):

• Entity Formation: Filing Articles of Incorporation and securing your EIN.
• IRS 501(c)(3) Status: Preparing the narrative and filing for your federal tax exemption (Determination Letter).
• Meaning Architecture: Crafting a compliant mission, bylaws, and program descriptions.
• The Launch Engine: Enrolling you in TechSoup or etc. and securing the $10,000/month Google Ad Grant.

What You Manage (Your Scope):

• Ongoing Compliance: Filing annual reports with the State and IRS.
• Financial Integrity: Bookkeeping and tax filings (Form 990).
• Fundraising Licenses: Renewing charitable solicitation permits.
• Governance: Holding board meetings and keeping minutes.

⚖️ 2. Your Most Important Hire: The Nonprofit CPA

We strongly recommend that you identify and hire a Nonprofit-specialized Accountant (CPA) immediately—even before your first donation arrives.

Why a specialized accountant?
Nonprofit accounting is fundamentally different from business accounting. You don't have "profit"; you have "net assets." You don't just spend money; you track "restricted" and "unrestricted" funds.

A specialized CPA will:

1. Set up your Chart of Accounts: Ensuring you track expenses by "Program," "Management," and "Fundraising" (IRS requirement).
2. Handle the 990 Filing: This is your annual "tax return" to the IRS. Missing this for 3 years leads to automatic revocation of your status.
3. Ensure Early Compliance: They will help you meet state-specific financial reporting requirements from day one.

Architect’s Tip: Do not use a standard "small business" accountant. Look for someone who specifically mentions "501(c)(3) Compliance" or "Fund Accounting."


📍 3. State-Specific Compliance Checklist (The "Good Standing" Guide)

Every state has its own "alarm clock" for filings. Below is a guide to what you must monitor depending on where your organization is registered.

CALIFORNIA (CA)

• Statement of Information (SI-100): Must be filed within 90 days of registration, then every 2nd year.
• Registry of Charitable Trusts (RRF-1): You must register with the Attorney General before fundraising. Requires annual renewal.
• FTB Exemption (Form 3500/3500A): While we get your IRS status, you (or your CPA) must ensure the California Franchise Tax Board also recognizes your state-level tax exemption.

NEW YORK (NY)

• Charitable Solicitation (CHAR410): Must register with the Charities Bureau before soliciting contributions.
• Annual Filing (CHAR500): An annual financial report required by the State.
• Publication: Some entities may have specific notice requirements depending on the county of incorporation.

TEXAS (TX)

• Public Information Report (PIR): Filed annually with the Comptroller.
• Sales Tax Exemption: After receiving the IRS Letter, you must apply separately to the Texas Comptroller for state sales and franchise tax exemptions.

DELAWARE (DE)

• Annual Report: Due by March 1st every year.
• Registered Agent: You must maintain a registered agent in the state at all times. Failure to pay the agent fee often leads to the entity being "Voided" by the state.

FLORIDA (FL)

• Annual Report: Must be filed between January 1 and May 1 every year to avoid a massive $400+ late fee.
• Solicitation of Contributions: Annual registration with the FDACS is required before asking for donations.

Part 2: The State-by-State Compliance Playbook

While we provide the "blueprint" and "construction" (Articles, EIN, 501c3 status, and Google Grant), the maintenance of the legal entity is a localized task. Below is a summary of what you must manage after our work is complete, categorized by the most common states.



🏛️ 1. Understanding "Public Support" and the IRS 990
Even though we secure your tax-exempt status, the IRS monitors you every year through Form 990.

• The "Zero" Rule: Even if you have $0 in revenue, you MUST file a "990-N" (Electronic Postcard). Failure to file for three consecutive years results in automatic revocation of your tax-exempt status.
• Public Support Test: IRS 501(c)(3) organizations are required to be "publicly supported." Your accountant must monitor that your funding doesn't come solely from one person (you) for too long, or you may be reclassified as a "Private Foundation," which has stricter tax rules.

🤝 2. Governance: Minutes, Bylaws, and Policies

A nonprofit is not a "one-man show." It is governed by a Board of Directors. To maintain your legal "corporate veil" and IRS compliance, you must:

• Hold Board Meetings: At least once a year (check your Bylaws for frequency).
• Keep Minutes: You must document what was decided. If it isn't in the minutes, legally, it didn't happen.
• Conflict of Interest Policy: You must sign this annually. This proves that the nonprofit's money is not being used to unfairly benefit your private business or family members.

📂 3. The "Compliance Binder" (Your Permanent Records)

We will provide you with a digital folder, but you (or your CPA) should maintain a physical or secure cloud "Compliance Binder" containing:

1. Articles of Incorporation (Certified copy).
2. EIN Confirmation Letter (CP 575).
3. IRS Determination Letter (Your 501c3 approval).
4. Bylaws (Signed and dated).
5. Meeting Minutes and Conflict of Interest forms.

🏁 4. Our "Exit" and Your "Start"

As defined in our Service Agreement, our role is to prepare the materials and guide you through the initial setup and Google Ad Grants enrollment.

Once the Google Grant is active and your IRS status is secured:

• Our primary contract is fulfilled.
• Future state filings, tax returns (990), and legal updates become your responsibility.
• Ongoing Strategy: We are always available for separate strategic consulting on how to use your nonprofit to build trust and synergy with your business, but the "legal engine" is now in your hands.

Summary of Next Steps for You:

1. Hire a Nonprofit CPA: To handle your first year of bookkeeping and 990 filing.
2. Mark Your Calendar: Set reminders for your State's Annual Report deadline.
3. Appoint a Secretary: Ensure someone is responsible for keeping board meeting minutes.