How To Start a Nonprofit in North Dakota in Nine Steps

The first step is to come up with a name that aligns with your mission statement. Your name should also be unique so it will not be mistaken for another charity or business entity. You can conduct a business name search using the business search tool with the North Dakota Secretary of State.

You should also check the name on the internet to make sure it is not a registered domain name. Finally, search the name on the United States Patent and Trademark Office (USPTO) website. If the name is already a registered domain name or trademark, you should not use the name. If the name is essential for your brand, you can register it as a domain name and trademark. This registration will prevent others from using your name.

The members of your board play a critical role. They oversee your operations, maintain compliance with laws, and review your financial statements. They have a fiduciary duty to operate in the best interests of the organization.

When looking for people to join your board, you may consider professionals with knowledge and passion for your cause as well as those with leadership and contacts in the community. These people can help with fundraising efforts and give visibility to your cause.

State law in North Dakota requires that a nonprofit organization must have at least three unrelated board members.

To set up your nonprofit organization you must complete and file articles of incorporation with the North Dakota Secretary of State. You can file online at the Secretary of State’s FirstStop portal by choosing to form a new corporation and then indicating whether the corporation will be a nonprofit corporation. You will have to create an account on the portal. The filing fee for nonprofit formation is $40.

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

Bylaws provide a structure for your nonprofit corporation. They are an operating manual for your organization. Within your bylaws, you will want to include the following:

• Your nonprofit’s name and mission statement

• The address of the principal office

• How many directors should serve on your board, how they will be elected, and how long they will serve

• The roles and responsibilities of your officers (President, Treasurer, and Secretary)

• When to hold meetings and how many people need to attend the meetings to make a decision

• The procedure for making amendments to the bylaws

• Conflict-of-interest policy

• The fiscal year of the organization and details on how to make decisions in your company

A corporation needs to have bylaws and a conflict-of-interest policy to get tax-exempt status from the IRS.

During your first organizational meeting with your board, there are at least three things you should do:

• Adopt bylaws

• Elect officers

• Address any other organizational matters

It is a good idea to take down the minutes of this meeting and all future board meetings as a corporate record.

Your corporation must have an Employer Identification Number (EIN) to open bank accounts or for tax filings. This identification number comes from the Internal Revenue Service (IRS). You can apply for an EIN by completing Form SS-4 on the IRS website, www.irs.gov.

You must then contact the IRS to file for tax-exempt status. The Internal Revenue Code dictates the forms for the types of nonprofits.

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

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

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

The IRS will send a determination letter from the IRS that confirms your income tax exemption for your new nonprofit.

Tax-exempt organizations recognized by the IRS do not have to pay corporate income tax in North Dakota. However, they may have to pay sales taxes on personal property unless they fall under an exception, such as the charity is a school or nursing home.

For tax exemption information, contact the North Dakota Office of State Tax Commissioner, 600 E. Boulevard Ave., Dept. 127, Bismarck, ND 58505-0599. You can also call (701) 328-1246 or visit the State Tax Commissioner Website.

Your nonprofit cannot operate or engage in charitable solicitations until the Secretary of State approves your registration statement. You can file a registration statement with the Online Business Services | North Dakota Secretary of State at https://firststop.sos.nd.gov. The registration fee is $25.