How To Start a Nonprofit in Indiana in Nine Steps

You will want to select a name for your nonprofit that should not be confused with another business entity. To search if a name is available in Indiana, check out the Business Name Availability tool on the Indiana Secretary of State Website. Then, see if the name is not a registered domain name or trademarked. If so, you cannot use the name.

To search for domain registration, enter the name in a search engine to see what appears, or check it with the ICANN Domain Names Registration Lookup tool. For registered trademarks, enter the name on the United States Patent and Trademark Office (USPTO) website to see if your name is available.

Your corporation must have a board of directors. Board members are individuals who have a fiduciary duty to govern the organization, review the finances, and initiate policies. The state law in Indiana requires appointing at least three board members.

Seek out board members who can positively impact to your organization, such as professionals, community leaders, and experts. They may also be helpful with networking and fundraising for your cause. However, the members must not engage in self-dealing or have conflicts of interest when serving on your board.

To create a nonprofit organization, complete the Articles of Incorporation Domestic Nonprofit Corporation State Form 4162 with the Secretary of State Business Services Division. You must provide the nonprofit’s name and address, the statement of purpose, the type of nonprofit corporation, such as a public benefit corporation, and the registered agent’s and incorporators’ information. The filing fee is $50. You can also file online by creating an account with the Secretary of State at In.Gov.

To qualify for income tax exemption with the IRS, you must have corporate bylaws and a conflict-of-interest policy that your board members sign. Bylaws are written rules for how your corporation operates and outline member responsibilities, how to elect officers and other procedural matters.

At the first board of directors organizational meeting, you elect officers, adopt the nonprofit bylaws, and take care of any other initial business. Keep the meeting minutes as part of your corporate records.

Your nonprofit will need an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). An EIN for your organization is similar to a social security number for an individual. An EIN is used to identify your business entity and to open bank accounts for your nonprofit. To get an EIN, complete Form SS-4 on the IRS website.

Your nonprofit also uses its EIN to apply for business licenses and permits in Indiana. Check your local and state requirements.

The next hurdle is to apply for tax-exempt status with the IRS. You file a particular form depending on your type of nonprofit entity under the Internal Revenue Code.

• For 501(c)(3) charitable, religious, and educational nonprofit organizations, use Form 1023 or Form 1023-EZ. If filing the 1023-EZ, use the Pay.gov site.

• For 501(c)(4) social welfare organizations, use Form 1024-A.

• For other tax-exempt or nonprofit organizations, such as 501(a), use Form 1024.

You should then receive an IRS determination letter to confirm your nonprofit status. You will need this letter for the next step.

You will want to qualify for state tax exemption in Indiana. Once you receive your determination letter from the IRS, apply to the Indiana Department of Revenue for state sales tax exemption. Complete the Nonprofit Application for Sales Tax Exemption (Form NP-20A) online using INTIME, the portal for the Department of Revenue.

According to the Indiana Attorney General’s Office, nonprofits that use professional fundraisers to solicit donations must register with the Attorney General’s office. However, if you and your employees create fundraising campaigns, you do not have to register. Check the registration requirements for charitable fundraisers with the Attorney General’s Office.

You may also want to check with your city, county, or town clerk's office to see if you need to register for licenses or permits for your nonprofit events and activities.