Step-by-step: How to incorporate your affiliate as a 501(c)(3)

Step 1: Form a nonprofit corporation in your state

This is the state step (separate from the IRS step). Usually done through your Secretary of State (or similar office).

Typical tasks:

• Choose a name and check availability.

• File Articles of Incorporation as a nonprofit corporation.

• Appoint a registered agent.

• Pay your state filing fee.

Important: Your Articles generally need IRS-compatible language (a charitable purpose clause + dissolution clause). The IRS publishes examples of acceptable organizing language—this is worth showing your attorney.

Step 2: Get an EIN (Employer Identification Number)

You need an EIN to:

• open a bank account,

• apply to the IRS for 501(c)(3),

• and file required annual forms.

Step 3: Build governance basics (before you file with the IRS)

At minimum:

• Adopt bylaws (how the organization makes decisions)

• Adopt a conflict of interest policy

• Hold an initial board meeting and record minutes (even simple minutes)

(A nonprofit attorney can often provide templates customized to your state.)

Step 4: Open a bank account (as soon as you can)

Once you have your state incorporation paperwork and EIN, you can usually open a nonprofit bank account. Requirements vary by bank, but you’ll typically need:

• Articles of Incorporation

• EIN confirmation

• Board resolution authorizing signers

• Photo IDs for signers

Step 5: Apply to the IRS for 501(c)(3) recognition (Form 1023 or 1023-EZ)

This is the federal step that makes you an IRS-recognized charitable organization.

• Form 1023-EZ is a streamlined option for smaller organizations that meet eligibility criteria (including limits on projected gross receipts and total assets). IRS

• If you are not eligible for the EZ form, you’ll file the full Form 1023.

Fees and filing method (current as of the IRS’s Oct 9, 2025 update):

• Form 1023: $600

• Form 1023-EZ: $275 IRS+1
  The IRS requires payment through Pay.gov when the application is filed. IRS+1
  (Fees can change—always verify on IRS.gov before filing.) IRS

Step 6: Register for charitable solicitation (fundraising) where required

Fundraising is regulated by state law, and most states require registration before you solicit donations from residents of that state. National Council of Nonprofits+1

Practical guidance:

• Start with your home state’s rules (often Attorney General, Secretary of State, or Consumer Protection office).

• If you fundraise across state lines (including online campaigns targeting other states), you may have additional obligations—ask your attorney.

Step 7: Put your donation systems and receipts in place

Once you’re recognized (or while you’re pending, with legal guidance), set up:

• A donation processor in the organization’s name

• A standard receipt template

• Clear internal rules for restricted gifts (e.g., “care packages” vs “legal fund”)

Step 8: Stay compliant every year

At minimum:

• File the required annual IRS return/notice for your organization type and size.

• Maintain corporate annual reports/renewals in your state.

• Renew charitable solicitation registrations where required.

• Keep basic financial records and board minutes.