How To Start a Nonprofit in Washington in Nine Steps

To create a nonprofit organization in Washington State, you must choose a name for your nonprofit, assemble a board of directors, file the articles of incorporation, apply for an employer identification number (EIN), and request federal and state tax-exempt status.

If you have a passion for promoting a charitable, social, religious, educational, or political purpose, consider organizing a nonprofit corporation. Unlike for-profit corporations, this type of organization can apply for tax-exempt status to avoid paying income tax. You can put that tax savings back into the corporation to further its mission.

To create a Washington nonprofit and learn the requirements for tax-exempt organizations, follow FindLaw’s step-by-step guide.

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Nine Steps to Form a Washington Nonprofit

1

Choose the Nonprofit’s Name

The name of your nonprofit should align with your charitable mission statement. The name should also be unique so as not to be confused with another business entity.

To check name availability in Washington, conduct a business search with the Washington Secretary of State. If a name is registered, it is not available for use.

Next, check if the name is already registered as a domain name by entering it into a search engine or by using the ICANN Domain Names Registration Lookup tool. If the name has prior registration, you cannot use it. If your name is available, consider registering it as a domain name for your exclusive use on websites.

Finally, make sure the name is not a registered trademark. Use the search feature on the United States Patent and Trademark Office (USPTO) website to see if your name is available. If so, you may want to register your name so other entities can’t use it.aceholder Step 1

2

Appoint a Board of Directors

Your board of directors governs your nonprofit and manages its activities. Board members have a fiduciary duty to act in the best interests of the corporation and avoid conflicts of interest. Their responsibilities include reviewing financial reports, operations, initiatives, and charitable solicitations. Under Washington state law, you must have at least three members on your board.

You may consider appointing board members with connections or expertise to further your mission. A board member may be helpful in networking or with your fundraising efforts. You also want board members who are as passionate about your cause as you are. For example, if you run a nonprofit afterschool program, a former teacher may be helpful in designing a curriculum for the students.

3

File Articles of Incorporation

To file your Washington nonprofit corporation’s articles of incorporation, you can either complete a form to mail to the Secretary of State or file online. The mailing address is:

Washington Secretary of State Corporations & Charities Division

PO Box 40234

Olympia, WA 98504-0234

You can also file online using the Secretary of State’s Corporations Division portal. The filing fee is $80 unless the gross revenue was less than $500,000 in the most recent fiscal year; in that case, the fee is reduced to $40.

The information needed is the nonprofit corporation’s name, gross revenue, members, corporate purpose, registered agent and address of registered agent service, and list of initial board of directors, among other things. If you do not have a unique business identifier (UBI), your corporation will receive one after your filing is accepted.

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4

Create Bylaws

For nonprofits to receive tax-exemption status from the IRS, they must have corporate bylaws and a conflict-of-interest policy. Corporate bylaws are instructions on how to run the organization, with details about members’ roles and responsibilities, elections, meeting schedules, and the number of officers needed to make important decisions. A conflict-of-interest statement requires board members to certify that they will not engage in self-dealing and act in the best interests of the organization.

5

Hold the First Board of Directors Meeting

At your initial board of directors meeting, you elect the officers of the nonprofit, adopt the nonprofit bylaws, and take care of any other organizational matters. Record the meeting minutes and keep them with your corporate paperwork.

6

Apply for Federal Employer Identification Number

An Employer Identification Number (EIN) is an identifier assigned by the Internal Revenue Service (IRS) for your corporation. You get an EIN by going to the IRS website and completing Form SS-4. You use this number when opening bank accounts and filing tax forms.

7

Apply for Federal Tax-Exempt Status

Next, apply for federal tax-exempt status with the IRS. There are different types of nonprofits. The form you file depends on your type of nonprofit as defined under the Internal Revenue Code:

  • 501(c)(3) charitable, religious, and educational nonprofit organizations should use Form 1023 or Form 1023-EZ. If your annual gross receipts won’t exceed $50,000, file Form 1023-EZ. You must pay the fee at the Pay.gov site.

  • 501(c)(4) social welfare organizations should use Form 1024-A.

  • Other tax-exempt or nonprofit organizations, such as 501(a), should use Form 1024.

The IRS will then send back a determination letter confirming acceptance of your nonprofit status.

8

Register with the Washington State Department of Revenue (if applicable)

Washington state does not have a state income tax. However, if your nonprofit conducts taxable business activities in the state, you must register with the Department of Revenue for a business license. Additionally, you may have to pay a business and occupation tax. However, if your nonprofit will limit itself to fundraising activities, it does not have to register. Find out more about Washington’s registration requirements for nonprofit organizations.

You may also want to check with your county clerk or local office to see if you need any licenses or permits for your nonprofit organization's activities and fundraising.

9

Register with the Washington Charities Program

Washington requires certain nonprofits to register with the Charities Program. Use this self-assessment guide to determine if your organization is required to register. If your nonprofit must register, follow the instructions for filing a Charity Registration form.

After Filing a Nonprofit

Once you establish your nonprofit organization, you want to ensure its tax-exempt status. Keep up to date on the reporting requirements for your nonprofit, such as:

  • Filing an IRS Tax Return. Each year, you must file an IRS Form 990 or Form 990-EZ.

  • Filing an Annual Report. The Washington Secretary of State requires an annual report for nonprofit corporations. You can request a form from the Secretary of State, or you can file the annual report online with the Office of the Secretary of State, Corporation and Charities Division.

  • Filing an Annual Charitable Renewal Form (if applicable). If your charitable organization requires you to register under the Washington Charities Program (see Step 9), you must complete an annual charity renewal form by the end of the 11th month after the fiscal year-end.

While a new law requires corporations and LLCs to file a Beneficial Ownership Information Report (BOIR), nonprofits are exempt from this requirement.

For more information on nonprofit formation, use FindLaw’s Starting a Nonprofit Organization Checklist and our resources about Nonprofit Organization Law.

If you need more direct help with your nonprofit, connect with a business law attorney through our attorney directory.

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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