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Starting a nonprofit in Louisiana can be an incredibly rewarding experience — especially if you're passionate about a cause in your community.
But just like starting a for-profit business, starting a nonprofit takes some thought and effort, as well as a bit of paperwork. In this blog, we'll cover everything there is to know about starting a nonprofit in Louisiana, so you can begin making an impact in no time.
14 steps to Start Your Nonprofit Organization in Louisiana
When considering starting a nonprofit in Louisiana from scratch, it can be hard to know where to begin. When deciding to take on the endeavor, it is important to get clear on a few fundamental things, including:
Community needs: Consider what problems you want to address or what positive changes you want to make.
The market: Research nonprofits in Louisiana land that work in similar areas or address similar issues. Identify any gaps or needs that your nonprofit could address.
Your goals: Clarify your nonprofit's specific goals and objectives. Determine what you hope to achieve in the short term and long term.
Your mission statement: Write a clear and concise mission statement that articulates who you are, what you do, and who you serve.
Feedback: Seek feedback from stakeholders, potential beneficiaries, and members of your community to ensure that your mission statement accurately reflects community needs.
Once you've determined your organization's core mission and goals, it's time to name your nonprofit. Not only is this step in the process important for marketing and branding purposes, but it's also a crucial part of the legal process of starting a nonprofit in Louisiana.
When deciding on your organization's name, be sure to choose a name that:
Reflects your mission and goals
Describes what you aim to do
Is easy to spell and pronounce
Offers room for future growth
Once you've determined your name, ensure that it abides by the state's official naming guidelines. Plus, be sure that the name you've decided on hasn't already been taken by another organization in the state by searching for it using the Louisiana state website.
Step 3. Appoint a registered agent
Appointing a registered agent is a vital step when forming a nonprofit in Louisiana. In essence, a registered agent acts as a reliable point of contact for legal matters. This designated individual receives important documents and official correspondence on behalf of your nonprofit, such as legal notices and tax forms.
The registered agent must:
Be a resident of Louisiana
Be at least 18 years of age or older
Consent to the appointment
Have a physical Louisiana street address
Must maintain usual business hours
Some organization's use registered agent services, too, but they're not necessary.
Step 4. Recruit a leadership team
Once you've determined your organization name and confirmed that it is not already in use, it's time to create a leadership team.
Identifying an Incorporator and a Board of Directors is not only a strategic decision that can help make your nonprofit a success, but it's a required one in Louisiana.
Incorporator: Nonprofits must recruit at least one Incorporator who will be responsible for signing the Articles of Incorporation.
Directors: You must assemble a board of at least three directors who will help guide your nonprofit through strategic decision-making. You must have a president and a secretary (one individual may hold two or more officer positions).
When choosing your leadership team, be sure to select people who are trustworthy, dependable, and bring a skillset to the table. Whether they're already a member of your organization or a trusted volunteer, they'll help you make crucial decisions about your charity.
Step 5. Draft bylaws
Next, you'll need to call a meeting with your board to draft bylaws that align with your mission and comply with Louisiana nonprofit laws.
Bylaws are the rules and procedures that govern how your nonprofit operates. They outline the structure of your organization, the responsibilities of the board and officers, how meetings will be conducted, and how decisions will be made.
When creating your bylaws, be sure to:
Use clear and concise language: Make the language easy to understand for all board members and stakeholders. Avoid jargon and overly complex language.
Make them comprehensive: Your bylaws should cover all essential aspects of your organization's governance, including board structure, officer roles, meeting procedures, decision-making processes, and conflict resolution mechanisms.
Alignment bylaws with mission and values: Ensure that the bylaws reflect and support the goals of the organization.
Consider flexibility: Include provisions that allow for amendments to the bylaws as the organization evolves and grows.
Outline board structure and responsibilities: Clearly define the board of directors, its qualifications, terms of office, and responsibilities.
Determine meeting procedures: Detail the frequency, notice requirements, quorum, voting procedures, and more.
Address finances: Establish guidelines for budgeting, accounting, and reporting requirements.
Create a conflict of interest policy: Include a conflict of interest policy that requires board members and officers to disclose any conflicts of interest and abstain from voting on matters in which they have a personal or financial interest.
Include dissolution procedures: Include provisions for the process of distributing assets and winding up affairs in accordance with state law and IRS regulations.
Step 6. Choose a corporation structure
In Louisiana, charitable organizations are required to choose a corporation structure. The four structures you can file under are:
Mutual Benefit Corporation: Mutual Benefit Corporations are nonprofit organizations that primarily serve the mutual benefit or interests of their members rather than the general public. Examples include social clubs, fraternal organizations, and homeowners' associations. While they are nonprofit entities, mutual benefit corporations do not typically qualify for tax-exempt status under section 501(c)(3) of the Internal Revenue Code.
Public Benefit Corporation: Public Benefit Corporations are nonprofit organizations that operate for the public benefit or the betterment of society. Unlike mutual benefit corporations, public benefit corporations are dedicated to serving the broader community rather than specific members.
Religious Corporation: Religious Corporations are tax exempt organizations specifically established for religious purposes, such as operating churches, mosques, temples, or other places of worship.
Mutual Benefit Common Interest Development Corporations: (CIDCs) are a specific type of nonprofit corporation established to manage and govern common interest developments, such as condominiums,, or homeowners' associations.
Next you'll need to officially establish your nonprofit as a legal entity by filing the Articles of Incorporation Form with the state with the Secretary of State in Louisiana.
When filing, be sure to include information about your nonprofit's name, purpose, duration, and address, as well as information about your corporation and board of directors.
Once completed, you'll need to submit a copy of the Articles of Incorporation and a Secretary of State-certified copy to your local recorder or mortgage office no later than 30 days after filing the Articles of Incorporation.
In Louisiana, like in other states, nonprofits are required to obtain an EIN, or Employer Identification Number with the internal revenue service. An EIN is like your organization's social security number. It's used for tax purposes, including opening a bank account, hiring employees, and applying for tax-exempt status.
To get an EIN, you can apply online using the IRS Form SS-4 on the IRS website or submit it by mail. The application process is free, and you'll receive your EIN shortly upon approval.
Step 10. Apply for federal and state tax-exempt status
Once you've created your bylaws, you'll need to apply for both federal and state tax exemption.
Federal tax-exempt status: Fill out Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code to be exempt from federal income tax. You'll need to provide detailed information about your nonprofit's activities, finances, and governance to the federal government.
State tax-exempt status: for state income tax exemption, complete Form R-1048.
Step 11. Register for charitable solicitation
Next, your nonprofit will have to register for charitable fundraising with the state's office — the Louisiana Department of Justice Public Protection Division – Charities.
Step 12. Obtain other necessary permits and licenses
Once you've filed all of the appropriate forms and established the necessary regulatory foundation for your nonprofit, it's time to start fundraising.
First, build a fundraising plan that outlines your goals, strategies, and tactics. Plus, be sure to consider how you'll cultivate donor relationships. Then, Put your fundraising plan into action by launching campaigns, events, and appeals to solicit donations and support. Keep track of your fundraising efforts and evaluate their effectiveness over time.
One of the best ways to start your nonprofit, and begin bringing in funds and connecting with donors, is by using a free all-in-one donation platform, designed specifically for charities. Unlike other platforms, Zeffy offers free marketing and engagement tools, event ticketing and management, raffle and auction tools, and so much more — without charging nonprofits a cent.
So not only can nonprofits start fundraising in minutes, but they don't have to pay any upfront, monthly, or hidden fees, ever. In fact, over 10,000 nonprofits use and love Zeffy for its powerful but simple —and always free—software designed to help make the world a better place.
As a legal nonprofit in the state of Louisiana, you'll need to remain compliant with federal and state rules and regulations throughout the year. This includes:
Maintaining nonprofit records: Keep accurate and up-to-date records of your nonprofit's activities, finances, and governance. This includes meeting minutes, financial statements, tax filings, and other important documents.
Filing annual reports: File annual reports with the IRS to maintain your nonprofit's legal and tax-exempt status.
Staying informed: Stay informed about changes to Louisiana state laws and regulations affecting nonprofit organizations. Attend training sessions, workshops, and webinars to learn about best practices and compliance requirements.
Check out how this nonprofit raised $169,000 for free
Houston's Energy and Luxury Brand Golf Charity Fund, a nonprofit that hosts golf events in order to raise funds for Cancer research, is always looking for new ways to engage its supporters in order to support the cause. One of the ways they raise money is through golf-related events.
However, Houston's Energy and Luxury Brand Golf Charity Fund also wanted to be able to accept donations on its website so donors could contribute even if they didn't partake in events. However, most fundraising websites and donation processors they found charged hefty upfront costs and processing fees—that is, until they found Zeffy, the 100% fee-free fundraising platform.
With Zeffy, Houston's Energy and Luxury Brand Golf Charity Fund was able to invite its supporters to give right on its website using a custom donation form. Since using Zeffy, this organization has been able to raise $169,000 and save $8,450 in fees.
Start your nonprofit for free with Zeffy
Whether you're a brand new nonprofit looking to get your fundraising up and running, or an established one looking for new tools and features to make even more impact, Zeffy is one of the best all-in-one solutions for all of your nonprofit needs.
From event tracking and management to marketing and engagement tools, custom donation forms, and even the ability to create an online shop or nonprofit membership association, Zeffy offers everything you need without charging a single fee.
Plus, Zeffy now helps organizations become registered nonprofits — for free — from assembling documents to getting your 501(c) status.
Here are a few costs to be aware of when starting a nonprofit in Louisiana:
Articles of Incorporation: $75 + optional $30-$50 expedited fee.
IRS application filing fee: The application fee for Form 1023 is currently $600 for organizations with annual gross receipts of $50,000 or more, and $275 for organizations with annual gross receipts of less than $50,000. Form 1023-EZ has a lower fee of $275.
Legal fees: Many organizations choose to seek legal assistance when incorporating a nonprofit to ensure compliance with state laws and IRS regulations. Legal fees can vary from several hundred to a few thousand dollars for legal fees.
Step 5. Create bylaws: Draft and adopt rules outlining the internal governance and operational procedures of the organization.
Step 6: Choose a corporation structure: file as a Mutual Benefit Corporation, Public Benefit Corporation, Religious Corporation, or Mutual Benefit Common Interest Development Corporation.
Step 9. Apply for an EIN: Apply for an Employer Identification Number (EIN) from the IRS for tax purposes and financial transactions.
Step 10. Apply for tax-exempt status: Apply for federal and state tax-exempt status under section 501(c)(3) of the Internal Revenue Code and Louisiana state law.
Using volunteers: Leverage volunteers for administrative, fundraising, or program work, to reduce the need for paid staff.
Seeking out in-kind donations and grants: Ask for donations of goods and services from businesses, individuals, or other organizations to support your nonprofit's activities (think office space or equipment). And, research grant opportunities to generate free financial support for your nonprofit's mission.
Leveraging partnerships: Look for potential partners, such as other nonprofits or community organizations, who might want to collaborate on shared goals.
Taking advantage of free tools and platforms: Be sure to use fundraising and donor engagement tools that are completely free to use, like Zeffy. That way, you'll never have to worry about hidden fees and can get started making an impact right away — without paying a cent.
The only 100% free fundraising platform for nonprofits
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