How To Start a Nonprofit in Maine in Nine Steps

Start by thinking of unique names that represent your nonprofit’s mission. Visit the Maine Secretary of State's website and search the corporate name search to see if another business in Maine is already using the name.

Do a general search online to determine if the name is already in use on the internet. If your name is available, consider registering it as a domain name for your website.

Check the United States Patent and Trademark Office (USPTO) database to confirm someone else has not trademarked your name. If you want to protect your nonprofit's name so others can’t use it, you can apply for a trademark with the USPTO.

A nonprofit corporation's board of directors guides the organization and is responsible for corporate governance. Maine state law requires boards to have at least three directors. The board oversees finances to ensure the nonprofit uses funds wisely, develops policies to guide its activities, holds the organization accountable, provides leadership, helps with networking, and supports fundraising efforts.

When choosing board members, look for individuals with skills and experiences that align with your nonprofit's mission. For example, if you’re starting a nonprofit animal shelter, you might want a veterinarian on your board. For more information, review the Maine Attorney General’s Guide for Board Members of Charitable Corporations.

To start a nonprofit, you must prepare and file Articles of Incorporation with the Maine Secretary of State, Division of Corporations. You can find the MNPCA-6 Maine Nonprofit Corporation Articles of Incorporation template on the Secretary of State’s website. You need to include the following:

• Nonprofit name

• Public or mutual benefit corporation and purpose

• Registered agent name and office address (CRA Public Number for if it’s a commercial registered agent service)

• Number of directors

• Whether the nonprofit has members

• Incorporator names, addresses, and signatures

The filing fee is $40. If you mail your Articles of Incorporation using the US Postal Service, send them to the Department of the Secretary of State, Corporations, UCC and Commissions, 101 State House Station, Augusta, ME 04333-0101. If you use FedEx or UPS, send to the Department of the Secretary of State, Corporations, UCC and Commissions, 6 E. Chestnut Street, 5th Floor, Augusta, ME 04330. The processing time is 15 to 20 business days. You can find more information about nonprofit corporation formation by visiting www.maine.gov.

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

Bylaws are the nonprofit’s rules and explain how the organization will operate and make decisions. When writing bylaws, you should include details like:

• How meetings will be held

• Voting procedures

• Process for electing officers

• Money management

Writing clear and detailed bylaws is important because they are required to obtain tax-exempt status from the Internal Revenue Service (IRS). Your bylaws should also include a conflict-of-interest policy to prevent board members and their families from personally benefitting from the nonprofit’s activities.

The purpose of the first board of directors meeting is to get organized and make important initial decisions. During this meeting, the board members review and approve bylaws, adopt the conflict-of-interest policy, elect officers, set up committees, assign responsibilities, set up a bank account, and plan the nonprofit’s activities. This meeting ensures everyone is on the same page about the organization's goals and operations. Be sure to take minutes. These notes record what was covered and act as an official record of the decisions made during the meeting.

Even if you don’t plan on having employees, your nonprofit must apply for an EIN with the IRS. An EIN is like a social security number but for your business. You need it to open bank accounts and for other tax-related purposes. You can get a free EIN in minutes by applying through the Small Business Tax Center on the IRS website.

Under the Internal Revenue Code, certain nonprofits qualify as tax-exempt organizations and don’t have to pay federal corporate income taxes. To do this, they must apply to the IRS for tax-exempt status. Filing requirements depend on what type of organization your nonprofit is:

• 501(c)(3) charitable, religious, or educational groups fill out IRS Form 1023 or a simpler version called Form 1023-EZ. If they qualify for the simpler form, they have to fill it out online using a website called Pay.gov.

• 501(c)(4) social welfare organizations apply with Form 1024-A.

• Other types of nonprofit groups like 501(a) file Form 1024.

If approved, the IRS will send a determination letter to your nonprofit confirming its eligibility as tax-exempt.

The State of Maine doesn't make charitable organizations pay sales tax if they have been granted 501(c) (3) tax-exempt status by the IRS. This means nonprofits can buy things without paying extra money on sales tax. You can apply for the state sales tax exemption using the Maine Tax Portal.

Maine has a law called the Charitable Solicitations Act, which says that nonprofits must sign up with the state if they want to raise money or ask for donations. You can register online by visiting the Maine State Office of Professional & Occupational Regulation website. Or you can complete the Charitable Organization License Application form and mail it to the Maine Office of Professional & Occupational Regulation, 35 State House Station, Augusta, Maine 04333-0035. The application fee is $20.