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How to start a nonprofit

How to start a nonprofit in Ohio in 11 steps [2024 Guide]

September 26, 2024
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Looking to start a nonprofit in Ohio but don't know where to begin?

In this blog, we'll cover everything there is to know about starting a nonprofit organization in Ohio from the ground up—from choosing a name and obtaining an EIN number to starting your fundraising for free.

11 steps to create a nonprofit in Ohio

Step 1. Choose a name

One of the most important steps to starting a nonprofit in any state is selecting a name for your organization. When considering what you'd like to call your nonprofit, consider questions like:

  • Does this name reflect our mission and values?
  • Does this name reflect our long-term goals?
  • Is this name easy to understand, say, and spell?
  • How does this name position us in the nonprofit industry, in comparison to similar organizations?
  • Will this name resonate with our target audience?
  • Does the name allow for future growth and expansion?

Once you've selected the name, be sure to check the Ohio Secretary of State's website to ensure that it's unique and not already in use by another organization in the state. 

Step 2. Appoint an Incorporator and a Board of Directors

Next, you'll need to assemble board members (at least three directors, per Ohio state rules). It's best to choose individuals who share your passion and bring diverse expertise to the table. They'll be helping to guide your organization's strategic direction and decision-making processes, so it's important to choose wisely.

You'll also need to have at least one Incorporator. This person will sign the articles of incorporation on behalf of your organization.

Step 3. Write bylaws

Once you've assembled your leadership team, it's time to hold a meeting.

At this meeting, you'll create bylaws, which are essentially internal rules and procedures that will guide your nonprofit's operations.

These might include:

  • Rules on board structure
  • Officer roles and responsibilities
  • Membership criteria
  • Meeting protocols 
  • Conflict of interest policy

All of this will help your organization run smoothly.

Step 4. Obtain a federal Employer Identification Number (EIN)

The next step involves applying for an EIN number which is necessary for opening a bank account and for tax reporting purposes. 

To apply for an EIN from the IRS (Internal Revenue Service), visit the IRS website and fill out Form SS-4.

Step 5. Incorporate your nonprofit

Like most states, Ohio requires nonprofits to file Articles of Incorporation with the Secretary of State to formally establish their nonprofit as a legal entity. 

This document typically includes essential information about your charitable organization, such as its name, purpose, duration, registered agent, and initial board of directors. The fee to file the Articles of Incorporation is $99 (an additional $100 for expediting).

Step 6. Federal and state exemption

Next, you'll need to apply for tax-exempt status at both the state and federal levels. Each has different required forms and rules for completion.

  • Federal Tax-Exempt Status: To apply for federal tax-exempt status under section 501(c)(3) of the Internal Revenue Code, you'll indeed have to submit either IRS Form 1023, IRS Form 1023-EZ, or IRS Form 1024, depending on the type of nonprofit you're starting. Once approved, your nonprofit will be exempt from federal income tax.
  • State tax-exempt status: Once you've applied for federal tax exemption and received an approval notice, you can register for ohio state tax exemptions through the Taxation Department. 

Step 7. Register for charitable fundraising

Nonprofits in Ohio that plan to solicit charitable contributions from the public (which is usually most nonprofits) must register with the Ohio Attorney General's Office Charitable Law Section. Moving forward, you'll need to file an annual report every year, too.

Step 8. Appoint a registered agent

The next step is to designate a registered agent for your nonprofit. This person will serve as the official point of contact and receive legal documents and official correspondence on behalf of the organization. 

The registered agent can be anyone you trust, but must have a physical address in Ohio where legal documents can be served during regular business hours. This individual or entity can be a member of your board of directors, a trusted volunteer, or a professional registered agent service. 

Step 9. Apply for other business licenses

Like most states, Ohio requires that nonprofits abide by separate, additional rules and regulations if they intend to use bingos or raffles as part of their fundraising activities. For more information and to acquire the necessary permits, visit the Attorney General's website. 

Step 10. Start fundraising

Once you've filed all of the appropriate forms and established the necessary regulatory foundation for your nonprofit, it's time to start fundraising! 

One of the best ways to start your nonprofit, and begin bringing in funds and communicating with donors, is by using a free all-in-one donation platform, designed specifically for charities. Unlike other platforms, Zeffy offers free event ticketing and management tools, raffle and auction features, and so much more — without charging nonprofits a cent.

So not only can nonprofits start fundraising in minutes, and with just about all the tools they need, they don't have to pay any upfront, monthly, or hidden fees — ever. In fact, Zeffy has helped 10,000+ nonprofits throughout North America raise over $200M and has never charged any of them a cent in fees.

Step 11. Remain compliant 

Like in most states, Ohio requires that all nonprofits stay up to date on specific rules and regulations in order to continue operating as legal charities. In the state of Ohio, nonprofits are required to:

  • File for charitable fundraising: Nonprofits engaged in charitable solicitation activities, such as fundraising from the public, must register with the Ohio Attorney General's Charitable Law Section annually.
  • File taxes Nonprofit organizations may be required to file various tax forms annually, depending on their tax-exempt status and activities. For example, nonprofits with 501(c)(3) tax-exempt status must file Form 990 or Form 990-EZ.
  • Stay organized: By using an all-in-one fundraising and donor management platform like Zeffy, your nonprofit can keep track of and organize all of your fundraising activities in one central place. Easy to use and incredibly powerful, Zeffy takes the stress out of running a nonprofit so you can focus on what's important. 

Start your nonprofit for free with Zeffy

We're excited to announce that Zeffy is finalizing its nonprofit incorporation feature, and we're looking for proactive individuals to participate in our beta program. We want to hear from you if you're looking to start a nonprofit in the United States and meet our specific criteria!

To enter the program, simply answer a few questions so we can assess your eligibility. Fill out the Google Form and, if you align with the right qualifications and we still have places available in our next test group, we'll reach out to you very soon.

Learn how this Ohio nonprofit raised over $52,000 (and saved $2,000+ in fees)

Reclamation Ministry is a local Ohio nonprofit dedicated to helping women who have experienced sexual harm health through faith. A beloved group in Ohio, Reclamation Ministry is always looking to expand its reach, make more impact, and help more women heal within a dedicated faith-based community.

However, Reclamation Ministry, like many nonprofits, recently faced challenges in their fundraising efforts: they needed a solution to help them spread the word about their mission in order to collect donations for their programs, all while avoiding fees. Specifically, Reclamation Ministry was seeking donations to support meetings, and educational resources, and cover the costs of starting a nonprofit. But many fundraising sites came with hefty price tags: costly upfront or monthly fees, processing fees, and more. Until they found Zeffy — the 100% free fundraising and donation platform.

With Zeffy, Reclamation Ministry created a custom donation form, designed to simplify the donation process and enhance the donor experience. With secure payment processing, customizable donation amounts, recurring donation options, and donor tracking capabilities, Reclamation Ministry was able to share its message far and wide and collect essential donations without paying a cent in fees.

Since using Zeffy — the completely free fundraising platform for nonprofits — Reclamation Ministry has raised $52,000 and saved $2,600 in fees.

Start making an impact in Ohio 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 tax exempt organizations need without charging a single fee.

Simple and powerful — and packed with free support whenever you need it — Zeffy ensures that your donor's gifts are going right to the cause, and nowhere else.

Frequently asked questions

When starting a nonprofit in Ohio, it's important to consider a few fees”

  • Incorporation Fees: Filing the Articles of Incorporation with the Ohio Secretary of State costs $99.
  • Filing for Tax-Exempt Status: Applying for federal tax-exempt status under section 501(c)(3) of the Internal Revenue Code requires filing Form 1023 or Form 1023-EZ with the IRS. The application fee varies depending on your organization's annual gross receipts, ranging from $275 to $600.
  • Miscellaneous legal fees: Though not required, some nonprofits hire legal assistance to ensure that they are correctly abiding by all the state rules and regulations. This cost, of course, varies depending on the kind of legal help you're seeking.
  • If you're looking to start a nonprofit with no money, it's crucial to use budget-friendly resources. With Zeffy, new nonprofits can cut down on their upfront expenses with free marketing and engagement tools, donation forms, event ticketing and management software, and more.

    The timeline for starting a nonprofit corporation in Ohio can vary depending on many factors. But on average, it typically takes several months to complete all necessary steps, obtain tax-exempt status from the IRS, and register with state authorities. It's important to budget for extra time, too, in case delays occur.

    Ohio law requires nonprofit corporations to have a minimum of three directors. However, organizations may choose to have more directors to bring diverse perspectives and expertise to the board.

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