How To Start a Nonprofit in Nebraska in Seven Steps

First, choose a unique name for your nonprofit that honors its mission statement. Start with the Nebraska Secretary of State’s Corporation & Business Search tool to determine whether your name is available. You should also ask the state to confirm whether the name you want is free to use. You can do this by sending a written request to the Nebraska Secretary of State by:

• Fax to (402) 471-3666

• Email to sos.corp@nebraska.gov

• Mail to Secretary of State's Office, Business Services Division, PO Box 94608, Lincoln, NE 68509

The Secretary of State’s office will write back to you to let you know if the name seems available, but this isn't the final answer. They make a final decision only after you officially file your nonprofit formation documents.

After verifying your name is available in Nebraska, use the United States Patent and Trademark Office (USPTO) online trademark database to ensure the name is not protected under a trademark registration. Finally, check if you can use the name online. Type the name into a search engine like Google and see what comes up. If the name isn’t a registered domain name, it’s available for use on your nonprofit’s website.

Choose at least three individuals to serve on your board of directors. Nebraska law only requires one director, but federal law requires at least three to register for tax-exempt status with the Internal Revenue Service (IRS). Your board of directors makes important decisions for the organization and ensures the nonprofit is working towards its goals, managing money well, and following all the rules. When choosing board members, look for people who are passionate about your nonprofit's mission and have an array of skills that can help, such as fundraising, legal knowledge, or experience in your nonprofit's field. It's also good to have a diverse board with different backgrounds and perspectives.

You officially form your nonprofit corporation by filing Articles of Incorporation with the Nebraska Secretary of State. The secretary of state does not provide a form so you must draft your nonprofit’s Articles of Incorporation. Be sure to include the following information:

• Name of nonprofit

• Organization’s purpose

• Type of nonprofit (public benefit, mutual benefit, or religious organization)

• Names and addresses of incorporators

• Whether nonprofit will have members

• Duration nonprofit will operate

• Name and physical office address of registered agent or registered agent service

The incorporators (individuals filing the incorporation paperwork) must sign the Articles of Incorporation. It’s $25 to file online and $30 to file in the office. You can file online using the Secretary of State’s Corporate & Business Document edelivery system.

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

Think of bylaws like a rulebook for your nonprofit. The IRS requires nonprofits to have bylaws and a conflict-of-interest policy in order to be tax-exempt. A conflict-of-interest policy explains how to handle situations where a person involved with the nonprofit might personally benefit from a decision they make for the organization. When writing your bylaws, cover the following:

• Nonprofit goals

• How leaders, like the president, treasurer, and secretary are selected and their individual roles

• Meeting schedule

• How to manage the money

• How to amend bylaws

Schedule your first board of directors meeting to get organized officially. During this meeting, the board will discuss and decide important things like adopting bylaws, electing officers, and setting up a bank account. It's also important to take notes during this meeting, which are called "minutes." This way everyone can remember what was covered and show the board is functioning properly. Keep these minutes with your business records and other legal documents.

Your nonprofit needs an EIN because it’s like a social security number for your organization. This number helps the IRS and other agencies identify your nonprofit for tax purposes. You can get an EIN online by visiting the IRS website at www.irs.gov. It's a simple process, and once you're done, you usually get the EIN right away.

To get federal tax-exempt status under the Internal Revenue Code, here's what you need to do:

• If your nonprofit is a 501(c)(3) organization, which means it's for charity, religion, or education, you should file Form 1023 or the simpler Form 1023-EZ. If you're eligible to use the 1023-EZ, you must fill it out online at the Pay.gov website.

• If your nonprofit is a 501(c)(4) organization, which is focused on social welfare, you need to fill out IRS Form 1024-A.

• For other types of nonprofits, like 501(a) organizations, you should fill out Form 1024.

Just because a nonprofit organization doesn't have to pay income tax to the federal government under section 501(c) doesn't mean it automatically gets out of paying Nebraska's sales tax. The only tax-exempt organizations regarding the sales and use tax are those created exclusively for religious purposes, providing services only to the blind or certain private educational institutions, colleges, and universities.

Additionally, nonprofits in Nebraska are responsible for paying state taxes on any unrelated business income. The Nebraska Department of Revenue’s nonprofit state tax exemption information sheet provides more information and answers to FAQs.