How To Start a Nonprofit in Rhode Island in Eight Steps

Think of a name for your nonprofit and make sure it’s available to use in Rhode Island. You can check by using the Rhode Island Department of State Corporate Database. Your name will not be approved if it’s the same or too similar to a name already in use.

You should also make sure the name you want isn’t being used as a website address on the Internet. Look it up online using a search engine like Google to see if it's available. Register it as a domain name if you plan on using it for your nonprofit’s website.

Find out if your name has been legally protected as a trademark. You can do this by searching the name on the United States Patent and Trademark Office (USPTO) database.

Under Rhode Island law, a nonprofit must have at least three directors on its board who can vote on decisions. They help guide the nonprofit, ensure the money is spent wisely, and plan for the future. When choosing people to be on the board, consider individuals who care about the nonprofit’s mission and will work together to achieve its goals. It’s also helpful to pick board members with experience or knowledge in areas like managing money, understanding laws, or raising funds.

The board members have a responsibility to do what's best for the nonprofit. They also need to agree to a rule that they won't let personal interests get in the way of their decisions.

Create your nonprofit by filing Articles of Incorporation with the Rhode Island Secretary of State Business Services Division. You can file online by visiting www.sos.ri.gov, or you can mail the Nonprofit Corporation Articles of Incorporation form to the Division of Business Services 148 W. River Street, Providence, Rhode Island 02904-2615. The state filing fee is $35.

To complete your Articles of Incorporation, you need the following information:

• Nonprofit’s name

• Period of duration

• Organization’s purpose

• Additional article provisions agreed upon by the incorporators

• Name and physical address for registered agent or registered agent service

• Names and addresses of the initial board of directors

• Name and address of each incorporator

The incorporators must sign the Articles of Incorporation. If you have questions, you can contact the Business Services Division. Their business days are Monday through Friday, between 8:30 a.m. and 4:30 p.m.

Bylaws are the rules your nonprofit group makes to manage how it runs. You’re not required to submit your bylaws to Rhode Island but must have bylaws and a conflict-of-interest policy to achieve tax-exempt status with the Internal Revenue Service (IRS).

Bylaws explain how your nonprofit functions, who is in charge, and how to solve problems. When you write these rules, you should include:

• Your nonprofit’s purpose and goals

• How the board is set up and how voting works

• Responsibilities of officers

• How to manage the money

• Policies and procedures for managing conflicts of interest

• Process for amending bylaws

• Details regarding the organization’s dissolution

The first meeting for a nonprofit's board of directors is the time to start organizing. During this meeting, the board members come together to agree on the bylaws, elect officers, like the president or treasurer, and take care of other important startup tasks. Write down notes, called minutes, about what happens during this meeting and any future meetings. Keep these with your organization’s business records and other important legal documents.

An EIN is like a Social Security number for a nonprofit corporation and helps the government identify your organization for tax purposes. Even if your nonprofit doesn't have employees, it still needs an EIN to open bank accounts, apply for tax-exempt status, and handle other business matters. You can apply for an EIN online at www.irs.gov and receive your EIN right away.

You can apply for tax-exempt status once Rhode Island accepts your Articles of Incorporation and you receive your EIN. The filing requirements to qualify as a tax-exempt organization under the Internal Revenue Code depend on what kind of nonprofit you have:

• If your nonprofit is a 501(c)(3), like a charity, religious, or educational group, you file Form 1023 or the simpler Form 1023-EZ. If you use Form 1023-EZ, you have to fill it out on the Pay.gov website.

• If your nonprofit is a 501(c)(4), which is a social welfare organization, you use Form 1024-A.

• For other types of nonprofits, you use Form 1024.

The IRS will send you a determination letter to let you know if your nonprofit is exempt from paying federal income tax.

Most nonprofit corporations don't have to pay state income taxes in Rhode Island. Your nonprofit may be responsible for paying state sales and use tax. You can apply for sales and use tax exemption through the Rhode Island Department of Revenue. If your nonprofit qualifies, you will receive a Sales Tax Exemption Certificate to buy things without having to pay sales tax. The application fee is $25.

Nonprofits that want to conduct fundraising in Rhode Island must register with the Rhode Island Department of Business Regulation. You need your EIN and IRS Form 990 (unless your nonprofit has not yet completed its first fiscal year). You can apply for charitable solicitation online through the Department of Business Regulation’s eLicensing website. The registration fee is $90.