When you’re considering setting up a nonprofit organization in Los Angeles, the complexity can be overwhelming. Where do you start? What are the necessary steps? How can you get the help and resources you need?

In this article, we’ll take an in-depth look at what you need to know to get started on your nonprofit organization—and how you can best protect yourself, both legally and logistically.

The Benefits of Starting a Nonprofit

There are many reasons to start a nonprofit. Perhaps you are passionate about effecting positive change on a city-wide level, or even on a global basis. Setting up a nonprofit can provide access to resources, donors, and assistance that can help elevate your cause as you strive to make a tangible difference.

Additionally, if your nonprofit meets certain criteria, your donors can receive tax deductions for their contributions. This may help to open the door to new streams of financial support for your cause or organization.

The Steps to Starting a Nonprofit in Los Angeles

Though the benefits are plentiful, the process of setting up a nonprofit organization can be complex and time consuming. To make the process easier and to ensure your organization is in full compliance with the law, here are the steps you should follow:

Step #1: Research

Thoroughly research the idea of setting up a nonprofit. In order to find out if setting up a nonprofit is right for you and your cause, you should ask yourself the following questions:

- What type of funding do you need?

- Are there any existing organizations that have similar missions or fundraising arrangements?

- Are there state and federal requirements for nonprofits you will need to comply with?

- How will you promote and fundraise for your nonprofit?

- Is there a board of directors who will oversee and manage your nonprofit’s operations?

Once your team has discussed and brainstormed the above questions, they can determine whether it makes sense to set up a nonprofit and if they have the resources to carry out the project.

Step #2: Contact a Professional

Before embarking on the project of setting up a nonprofit, it’s important to speak with a knowledgeable professional. A lawyer who specializes in setting up nonprofits can both expedite and ease the process of creating a successful organization. He or she will be able to explain local regulations you need to be mindful of, as well as state and federal requirements, and guide you through the process.

One such type of lawyer that specializes in setting up nonprofits is called an attorney-advisor. An attorney-advisor is a professional who provides invaluable assistance not only through the above listed research but also with real-time counsel that can help protect your organization and its work. Secure an attorney-advisor to ensure your project is an enduring success.

Step #3: Choose a Structure

You must also decide which legal entity and structure you’d like to form. The structure you choose will depend on the overall purpose of the nonprofit, as well as how you want to acquire funds and who will govern it. Will you form a 501(c)(3)? A 501(c)(4)? A 501(c)(6)? Each of these entitles you to specific income tax exemptions and a certain level of legal protection. A Los Angeles business attorney who specializes in setting up nonprofits can help you determine which structure is best for your organization.

Step #4: File the Necessary Documentation

After selecting your structure, you must then file the necessary documentation to set up your organization. You can begin the process with the state to ensure your organization is compliant as a legal entity, and also work with a professional to fulfill federal requirements such as applying for tax-exempt status through the Internal Revenue Service (IRS). You will need to submit additional documents as requested through the filing process, but by working alongside a knowledgeable legal professional, you can ease the process and know from the outset that your organization is in alignment with all legal requirements.

Wrapping up

Starting a nonprofit organization in Los Angeles can be a complex process that requires extensive research and the assistance of professionals for perfect compliance with all regulations. Consult with a Los Angeles business attorney who specializes in setting up nonprofits to determine the proper structure, file the necessary documents, and ensure proper compliance throughout the development and life cycle of your organization.

Topics:

Nonprofit Organizations,

Los Angeles,

Legal Assistance