How To Start a Nonprofit in the District of Columbia in Nine Steps

To start a nonprofit corporation in Washington, D.C., you need to pick a name, choose your board of directors, file articles of incorporation, request an employer identification number (EIN), apply for tax-exempt status, and register for fundraising in Washington, D.C.

A nonprofit organization is a group set up to help with charity, community, religion, education, or politics. Since its goal isn't to make money, it can ask to avoid certain taxes. This FindLaw article will guide you through the steps of nonprofit formation in Washington, D.C.

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Nine Steps To Start a District of Columbia Nonprofit

1

Choose a Name for your Washington, D.C. Nonprofit

Think of a unique name for your new nonprofit that’s related to what your organization will do. Check on the Department of Licensing and Consumer Protection (DLCP) website to ensure no other business is using your name in Washington, D.C. Visit corponline.dcra.dc.gov and create a free account to use the business name search tool. This site was formerly the Department of Consumer and Regulatory Affairs (DCRA) website.

You should also check if the name is trademark protected by searching the United States Patent and Trademark Office (USPTO) database. You can use an online domain name search to check if the web address is taken.

2

Assemble a Board of Directors

You’re required to choose at least three individuals for your board of directors. They will make important decisions on behalf of your nonprofit. Look for individuals who care about your nonprofit’s mission and have skills or experience that can help your organization succeed. For example, you might choose someone who is good with finances, has legal knowledge, or is experienced in the field your nonprofit is focused on, like education or healthcare. Select board members who can work well together and are committed to helping your nonprofit achieve its goals.

3

File Articles of Incorporation

To officially register your Washington D.C. nonprofit, file Articles of Incorporation for Domestic Nonprofit Corporation, Form DNP-1 with the Corporations Division of DLCP. The form will ask for your nonprofit’s name, purpose, address, and the names and addresses of your board of directors. Make sure to fill out everything carefully. You also need to include information for a registered agent to receive legal documents for your nonprofit.

Submit the form to the DLCP online or by mail. The mailing address is Department of Licensing and Consumer Protection Corporations Division, PO Box 712300, Philadelphia, PA 19171-2300. The filing fee is $80. You can also file in person but will be charged an additional fee of $100 for one-day service. Business days are Monday through Friday and business hours are 9 a.m. to 5 p.m.

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4

Create Bylaws

Bylaws are your rulebook that explains how to run your nonprofit. They’re also required to get federal tax-exempt status. Bylaws keep things fair and organized because they help everyone understand their roles and how to make decisions. When writing bylaws, include details like how often the board of directors will meet, what powers and duties they have, how new board members are chosen, how decisions will be voted on, and your conflict-of-interest policy.

5

Hold Initial Board Meeting

Schedule your first board meeting to make key decisions about how the nonprofit will operate. During this meeting, the board should go over and officially adopt the bylaws, elect officers, plan how meetings will be held in the future, and discuss the nonprofit’s goals. It’s important to take notes, called minutes, to keep a record of what was decided for future reference.

6

Obtain Employer Identification Number (EIN)

An EIN is like a social security number for a nonprofit corporation. You need it to do important things like open a bank account, hire employees, and file taxes. Apply for an EIN filing IRS Form SS-4 on the Internal Revenue Service (IRS) website. Once you submit the form, you'll usually get your EIN right away.

Nonprofit corporations also need to register with the District of Columbia Office of Tax and Revenue for a registered tax number. You can submit your nonprofit’s tax registration by completing Form FR-500 on the District's online tax portal.

7

Apply to the IRS for Tax-Exempt Status

You can apply to the IRS to make sure your nonprofit doesn’t have to pay federal income taxes. This approval is known as tax-exempt status under Internal Revenue Code 501(c)(3). Here’s how:

  • If your nonprofit is about helping others, like charities, religious groups, or schools, you’ll need to fill out Form 1023 or Form 1023-EZ. If you can use Form 1023-EZ, you have to fill it out on a website called Pay.gov.

  • If your nonprofit focuses on improving the community, like social welfare groups, you should fill out Form 1024-A.

  • For other kinds of nonprofit organizations, use Form 1024.

8

Apply for Tax-Exempt Organization Status in Washington, D.C.

You can apply for District tax-exempt status with the D.C. Office of Tax and Revenue. After setting up your tax account, file a registration application for recognition of exemption, Form FR-164. This form can be filed online at MyTax.DC.gov, and there's no fee to file it. You may qualify for other personal property, sales, and franchise tax exemptions, depending on where your office is located. You can find more information about exempt and nonprofit organizations on the Office of Tax and Revenue’s website.

9

Apply for a Charitable Solicitation License in Washington, D.C.

If you plan on fundraising in Washington, D.C., you need a type of basic business license called a charitable solicitation license. To apply, submit these filing requirements to DLCP:

  • Charitable Services Business Worksheet

  • IRS Determination Letter

  • Registered tax number with the D.C. Office of Tax and Revenue

  • Clean Hands Certification

  • Certificate of Occupancy/Home Occupation Permit

The license filing fee is $412.50, unless your nonprofit qualifies for an exemption.

After Filing a Nonprofit

Once you startup your nonprofit, follow the reporting requirements to remain in good standing:

  • File Annual Returns with the IRS. Tax-exempt nonprofit corporations must file IRS Form 990 or Form 0990-EZ each year.

  • File Biennial Reports. Every two years, nonprofits are required to file Form BRA-25, Two-Year Report. The due date for your first report is April 1st of the year after you formed your nonprofit. After that, reports are due every other year by April 1st. The filing fee is $80.

  • Renew Tax-Exempt Status. In Washington, D.C., you must renew your nonprofit’s tax-exempt status every five years. Keep track of when the exemption certificate expires and file Form FR-164 again before it runs out.

Under the Corporate Transparency Act, some companies need to fill out a form called a Beneficial Ownership Information Report (BOIR) to show who owns them. However, nonprofit groups, like 501(c) organizations, don't have to file this form.

Find more helpful tips with our Starting a Nonprofit Organization Checklist and other resources on Nonprofit Organization Law. If you still have questions, get advice from a business attorney.

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

Disclaimer: The information presented here does not constitute legal advice or representation. It is general and educational in nature, may not reflect all recent legal developments, and may not apply to your unique facts and circumstances. Consider consulting with a qualified business attorney if you have legal questions.

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