How To Start a Nonprofit in Mississippi in Nine Steps

When thinking about your mission statement for your charity, consider how your name can help promote your mission. The name you choose should be unique so as not to be confused with any other similar charitable organization. To see if your name is unique in Mississippi, go to the Mississippi Secretary of State’s Business Services portal and enter the name in the search bar.

You will then want to make sure the name is not already registered as a domain name on the Internet. To look for registered domain names, enter the name in a search engine or in the ICANN Domain Names Registration Lookup tool.

Finally, make sure your name is not a registered trademark. To find this out, go to the United States Patent and Trademark Office (USPTO) website and search for the name.

If your chosen name is not a business entity, domain name, or registered trademark, it is available for your use. You can protect your name by registering it as a domain name or a trademark.

A board of directors governs the nonprofit corporation’s activities. The board members oversee the operations, review financial statements, and provide leadership and advice. They also must avoid self-dealing and conflicts of interest. A Mississippi nonprofit corporation must have at least three board members.

You should ask community leaders or professionals to join your board. They can help with fundraising and networking in your community. Or they can lend their professional expertise. For example, if you have a nonprofit focusing on juvenile diabetes, you may want a medical professional who can break down medical terms and discuss the latest research. You may also want someone like a retired accountant or CPA because they will be able to review, understand, and explain financial statements to the rest of the board.

To create a nonprofit in Mississippi, you must file articles of incorporation with the Mississippi Secretary of State. The information you include in the filing is the name of the nonprofit, the address of the principal office, the registered agent’s name and address for registered agent service, the name and address of the incorporator(s), and the nonprofit’s purpose. The filing fee is $50. All business filings are done online, so you must first create an account.

A nonprofit organization must have corporate bylaws and conflict-of-interest policies. The bylaws are the written structure of how your nonprofit operates. For example, it will define the roles and responsibilities of your offices, determine meeting schedules, and how many officers constitute quorum needed to make decisions. Your board members and officers sign a conflict-of-interest policy stating that they act in the best interest of the organization and avoid conflicts or self-dealing.

At the first organizational meeting with the board of directors, your board will ratify the articles of incorporation, elect officers, adopt the bylaws, and set forth other details about your corporation, such as the timing of meetings or the date of your fiscal year. Under Mississippi law, this meeting must occur within two years of your incorporation date.

It is a good practice to meet regularly with your board, at least once a year. Keep the notes or minutes of the board meetings with your corporate records.

You must get a Federal Employer Identification Number (EIN) from the Internal Revenue Service (IRS). The EIN identifies your nonprofit with the IRS, and you use it to open bank accounts in the nonprofit’s name. To apply for an EIN, go to the IRS website and fill out Form SS-4.

To get tax-exempt status for your new nonprofit, you must apply to the IRS. The tax form you use depends on the nonprofit classification under the Internal Revenue Code.

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

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

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

Then, you receive an IRS determination letter confirming your nonprofit status as tax-exempt. Keep this letter with your important legal documents and corporate records, as you will need it for other filings.

Register for a taxpayer account (TAP) with the Mississippi Department of Revenue (also called the Mississippi State Tax Commission). Your nonprofit may be exempt from state tax and apply for sales tax exemption.

Before your nonprofit begins solicitation for contributions, it must register with the Securities and Charities Division of the Mississippi Secretary of State’s Office. You can register online with the Secretary of State. There is a $50 initial registration fee. Each year, the nonprofit must also file an annual registration renewal.