How To Start a Nonprofit in Kentucky in Nine Steps

Pick a unique name not already in use by another business. It should also follow state regulations about naming conventions.

Use the Kentucky Secretary of State’s name availability search to check if the name you want is available. You should also find out whether your name is already being used as a domain by checking the internet. Finally, make sure your name is not registered as a trademark by searching the United States Patent and Trademark (USPTO) website.

Kentucky state law requires at least three directors to form a nonprofit. The board will oversee the organization and make decisions. It will ensure resources to promote its mission. Choose individuals who care about the nonprofit’s purpose. They must have the skills to gain public trust and help the organization succeed. Pick board members who are ethical and:

• Have business experience

• Are passionate about why the nonprofit was created

• Have connections to the community

The Articles of Incorporation are the document you file to officially establish your nonprofit formation. Complete the Kentucky Non-profit Articles of Incorporation and include the required information such as:

• Nonprofit's name

• Purpose

• Registered agent service

• Initial board of directors

File the Articles with the Kentucky Secretary of State. Use the Division of Business Filings. The filing fee is $8. You can file online at the OneStop Business Portal. To file by mail, send your Articles to Michael Adams, Office of the Secretary of State at P.O. Box 718, Frankfort, KY 40602-0718. Include a check for the filing fee made payable to “Kentucky State Treasurer.” You can also file in person.

Or you can let our trusted partner LegalZoom handle the incorporation process with packages starting at $99 + filing fees.

Bylaws govern how your nonprofit will operate. They cover procedures for meetings, voting, and the roles of officers and directors. You should also include your conflict of interest policy to ensure unbiased decisions are made in the best interest of the nonprofit. Bylaws help to gain public trust by showing your organization is willing to be transparent and accountable. Also, bylaws are required to get tax-exempt status from the IRS.

Hold a first meeting to agree on your organization's strategies and protocols. At the first meeting, adopt bylaws, elect officers, and address initial matters, such as:

• Review your mission statement

• Discuss legal requirements

• Approve budget

• Schedule future meetings

Be sure to record the minutes of the meeting and keep them with your business records. Staying organized will help your nonprofit run smoothly and aid in the success of its future operations.

Once your nonprofit is formed, apply for an EIN from the Internal Revenue Service (IRS). It's needed to open bank accounts and apply for tax-exempt status. The fastest way to apply is by submitting Form SS-4 online through the IRS website.

After you receive your EIN, file for tax-exempt status with the IRS. Your form depends on how the Internal Revenue Code classifies your exempt organization.

• Form 1023 or Form 1023-EZ. Charitable, religious, and educational nonprofits file Form 1023 or 1023-EZ under 501(c)(3). If filing the 1023-EZ, use the Pay.gov site.

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

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

The fee amount depends on which form you file. Once approved, the IRS will issue a determination letter within 22 business days.

To apply for state tax exemptions, register a tax account with the Kentucky Department of Revenue and file an Application for Purchase Exemption Sales and Use Tax. Include your articles of incorporation and IRS determination letter.

Mail to: Kentucky Department of Revenue, Division of Sales and Use Tax, P.O. Box 181, Station 67, Frankfort, KY 40602-0181.

Before your nonprofit does any fundraising, register with the Kentucky Attorney General’s office. To register, mail the Unified Registration Statement to the Office of the Attorney General, Attn: Charity Registration, 1024 Capital Center Drive, Suite 200, Frankfort, KY 40601. There is no filing fee.