How To Start a Nonprofit in Hawaii in Nine Steps

To create a nonprofit organization in Hawaii, you must come up with a name for your nonprofit, recruit a board of directors, file articles of incorporation for the nonprofit, get an employer identification number (EIN), and register the Hawaii nonprofit for federal and state tax exemption status.

You may have a great idea for a charitable organization that will help a social, religious, educational, or political cause in Hawaii. Consider forming a nonprofit so your organization can be exempt from federal and state income tax. Not-for-profit companies do not have to pay income taxes, so there will be more money to further the charitable purpose.

Follow this step-by-step guide to create a startup nonprofit organization in Hawaii.

Meet FindLaw's trusted partner LegalZoom, an industry leader in online business formations

Let's start your nonprofit!

Join the millions who launched their businesses with LegalZoom. Nonprofit registration starts at $99 + filing fees.

Get Started

Nine Steps to Form a Hawaiian Nonprofit

1

Choose the Nonprofit’s Name

You should first know the purpose of your charity and have a mission statement in mind. When choosing a name for your organization, you want it to be distinctive yet reflect your charity's mission. You can conduct a business entity name search in Hawaii with the Business Registration Division, Department of Commerce and Consumer Affairs to see if another business has registered the name.

Then you will want to search for the name on the Internet by entering it in a search engine or by using the ICANN Domain Names Registration Lookup tool to make sure no one else has registered your name as a domain name. If the name is available, you may want to register it yourself so you can use it for your website.

2

Recruit a Board of Directors

You will need a board of directors to help you govern your organization. In the state of Hawaii, you must have at least three board members in your nonprofit. The board members provide leadership and review corporate activities, financial statements, and policies. They had a fiduciary duty to act in the best interests of the organization and avoid conflicts of interest.

Invite board members who share your vision and can contribute their expertise and connections through networking and fundraising. You may want a CPA, accountant, or someone who is good with numbers to review finances or someone with a professional background who can give sound advice.

3

File Articles of Incorporation

To operate your nonprofit in Hawaii, you must first file articles of incorporation with the Business Registration Division, Department of Commerce and Consumer Affairs (DCCA).

To file by mail, complete Form DNP-1, Articles of Incorporation. You will need to include the name of the nonprofit corporation, the mailing address of the principal office, the name of the registered agent and address for registered agent service, the name and address of the incorporator(s), and if the corporation has members. You can mail the form with a $25 fee to P.O. Box 40, Honolulu, Hawaii 96810. Make checks payable to the Department of Commerce and Consumer Affairs.

To file online, you must create an account with eHawaii.gov. From there, you can file the articles of incorporation and pay the filing fee online. The filing fee for a Hawaii nonprofit is $25.

Or you can let our trusted partner LegalZoom handle your nonprofit creation starting at $99 plus filing fees.

4

Create Bylaws

Nonprofit organizations must have corporate bylaws and conflict-of-interest policies. Your bylaws outline the rules and procedures for your organization. For example, it can define your corporate structure, your officer’s roles and responsibilities, and detail meeting times and voting procedures. Your board members and officers should sign a conflict-of-interest policy stating that they will avoid self-dealing.

5

Hold Your First Board of Directors Meeting

At the first board of directors meeting, your board will elect officers to your organization, adopt the bylaws, and set forth your organization’s mission and goals. You should have meetings frequently, at the very least once a year, and keep minutes of all board meetings as part of your corporate records.

6

Apply For a Federal Employer Identification Number

The next step is to get an Employer Identification Number (EIN) for your organization from the Internal Revenue Service (IRS). This EIN is used to identify your corporation with the IRS and state and also to open bank accounts. For an EIN, fill out Form SS-4 on the IRS website.

7

Apply For Federal Tax-Exempt Status

To file for tax-exempt status with the IRS you must complete a specific form that matches the type of nonprofit entity defined by the Internal Revenue Code.

  • 501(c)(3) charitable, religious, and educational nonprofit organizations should file Form 1023 or Form 1023-EZ. If you qualify to file the 1023-EZ, use the Pay.gov site.

  • 501(c)(4) social welfare organizations should file Form 1024-A.

  • Other tax-exempt or nonprofit organizations, such as 501(a), should file Form 1024.

You will then receive an IRS determination letter confirming your nonprofit’s tax-exempt status. Keep this letter with your corporate records as you will need it for other uses.

8

Apply for an Exemption from General Excise Taxes

In Hawaii, corporations pay a privilege tax for doing business in Hawaii, called a general excise tax. This tax is based on your gross revenue (before business expense deductions). However, your nonprofit can file for an exemption with Form G-6, Application for Exemption from General Excise Taxes. This exemption form can only be filed online at hitax.hawaii.gov.

9

Register With the Hawaii State Attorney General’s Office

If you plan on making charitable solicitations, you must register your nonprofit with the Hawaii Attorney General’s Charity Registration site unless it can be exempt under law. However, if you file an IRS 990 or 990EZ, you most likely will have to register your nonprofit. The initial registration is free, but you must file electronically. Also, you will have to file a Hawaii transmittal (also known as the Annual Transmittal Form) each year.

After Filing a Nonprofit

You will want to keep your corporation in good standing and maintain your tax-exempt status by keeping up with the nonprofit’s federal and state reporting requirements, such as:

  • File either IRS Form 990 or Form 990-EZ each year with the Internal Revenue Service.

  • File an annual report with the Hawaii Department of Commerce. You can file the annual report online. The filing fee for a nonprofit corporation is $2.50. The annual filing due date depends on your anniversary date of filing.

    • If you formed your corporation on or between January 1st and March 31st, you file by March 31st each year.

    • If you formed your corporation on or between April 1st and June 30th, you file by June 30th each year.

    • If you formed your corporation on or between July 1st and September 30th, you file by September 30th each year.

    • If you formed your corporation on or between October 1st and December 31st, you file by December 31st each year.

For-profit corporations and LLCs must file a Beneficial Ownership Information Report (BOIR) according to the Corporate Transparency Act. Nonprofit corporations do not have to file a BOIR.

Creating a tax-exempt organization is a lot of work. Follow FindLaw’s Starting a Nonprofit Organization Checklist and learn more about nonprofit organization Laws. Consulting a business attorney through FindLaw’s attorney directory may also be helpful.

Or you can let our trusted partner LegalZoom handle your nonprofit creation starting at $99 plus filing fees.

Disclaimer: The information presented here does not constitute legal advice or representation. It is general and educational in nature, may not reflect all recent legal developments, and may not apply to your unique facts and circumstances. Consider consulting with a qualified business attorney if you have legal questions.

Was this helpful?

FindLaw will earn a commission if you purchase business formation products through these affiliate links.

Meet FindLaw's trusted partner LegalZoom, an industry leader in online business formations

Kickstart your nonprofit in minutes!

LegalZoom’s simplified registration process helps you get your nonprofit off to the right start.

Nonprofit plans start at $99 + state fees.

Prefer to work with a lawyer?

Find one right now.