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How to start a nonprofit

The 13 Steps for Starting a Nonprofit in Oregon [2024 Ultimate Guide]

October 27, 2024

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13 Steps to Starting a Nonprofit in Oregon

If you're looking to start a nonprofit organization in Oregon, you’ve come to the right place.

In this blog, we’ll cover everything there is to know about launching your own charity, from researching and planning to choosing a name and starting to fundraise for free.

13 Steps to Starting a Nonprofit in Oregon

1. Research and Plan

When considering starting a nonprofit in Oregon 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 Oregon 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.

2. Name Your Organization

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 Oregon. 

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 found a name, be sure to search for it on the Oregon business registry site. Make sure it's not already in use by another organization in the state, and reserve it if possible.

3. Recruit Incorporators and Initial Directors

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 Oregon. 

  • 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. 

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.

4. Appoint a Registered Agent

Appointing a registered agent is a vital step when forming a nonprofit in Oregon. 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 located in Oregon and available during regular business hours to receive legal correspondence and communication.

5. Prepare and File Articles of Incorporation

One of the most crucial steps in starting a nonprofit in Oregon is filing the Articles of Incorporation on the Oregon Business Registry for $50. This will officially establish your nonprofit as a legal entity in the state.

Once the Articles of Incorporation are approved, you'll receive a Certificate of Incorporation from Oregon, officially recognizing your nonprofit as a legal entity.

6. Obtain an Employer Identification Number (EIN)

In Oregon, like in other states, nonprofits are required to obtain an EIN, or Employer Identification Number. An EIN is like your organization's social security number. It's used for tax purposes, including opening bank accounts, 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. 

7. Establish Initial Governing Documents and Policies

Next, you’ll need to call a meeting with your board to draft bylaws that align with your mission and comply with Oregon 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.

Sometimes, nonprofits hire legal counsel to oversee this process, but it’s not necessary.

8. Hold Organizational Meeting of the Board of Directors

The organizational meeting of the board of directors is a nonprofit's first formal gathering, where the foundation for its operations is set. 

At this meeting, the board typically elects officers (like the president, secretary, and treasurer), approves the bylaws (the nonprofit’s governing rules), and adopts initial policies such as conflict of interest and financial procedures. This meeting ensures all directors are aligned on the nonprofit’s mission, structure, and responsibilities, and it serves as a critical step in legally establishing the nonprofit’s framework for future activities.

9. Get Oregon State Tax Identification Numbers/Accounts

Next, you’ll have to apply to to the Department of Revenue to receive state tax identification numbers.

10. Apply for 501(c) Status and  State Tax Exemption(s)

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. You’ll need to provide detailed information about your nonprofit's activities, finances, and governance.
  • State tax-exempt status: In Oregon, nonprofits that apply for federal charity status already have exempt status in the state.

11. Register for Charitable Solicitation 

To be able to fundraise, you’ll register through the Oregon Department of Justice (DOJ) and file  Form RF-C either via email or mail. 

12. 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. 

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.

13. Stay Compliant

As a legal nonprofit in the state of Oregon, you’ll need to remain compliant with federal and state rules and regulations throughout the year. This includes:

  • Maintaining 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 Oregon state laws and regulations affecting nonprofit organizations. Attend training sessions, workshops, and webinars to learn about best practices and compliance requirements.

How Oregon Nonprofit Friends of Normie Raises $26,407 Using Zeffy

Friends of Normie is a unique organization combining cat rescue efforts with a business that sells safe, sustainable cat products. Their mission is simple: to provide safety and care for as many cats as possible. A key component of their approach is that 20% of all sales go directly toward funding their rescue efforts.

Like many nonprofits, Friends of Normie needed to find a cost-effective way to raise funds to support their mission. Traditional fundraising platforms came with high transaction fees, reducing the amount of money available for rescuing cats. To maximize the impact of every donation, they sought a platform that could help them retain more of the funds raised.

Friends of Normie turned to Zeffy, a zero-fee platform designed for nonprofits. With Zeffy, they could avoid the high processing fees typical of other platforms, ensuring that more of the money raised would go directly to their rescue efforts. 

Since partnering with Zeffy, they’ve used the platform to handle event ticketing and receive donations through donation forms. In total, Friends of Normie has aised $26,407 through Zeffy, saving $1,320 in fees that would have been lost with traditional platforms.

Start fundraising 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.

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 (FAQs)

Starting a nonprofit in Oregon typically costs around $50 to file the Articles of Incorporation with the Oregon Secretary of State. If you plan to apply for federal tax-exempt status under 501(c)(3), there is an additional fee for filing IRS Form 1023, which ranges from $300 to $600 depending on your organization’s size and the form used.

The timeframe to start a nonprofit can vary. Filing the Articles of Incorporation in Oregon generally takes about 1 to 2 weeks for processing, but it can be expedited for a fee. After filing, applying for 501(c)(3) status with the IRS can take anywhere from 3 to 6 months, depending on the complexity of your application and the IRS’s current backlog.

Oregon requires a minimum of three board members for a nonprofit organization.

To obtain tax-exempt status under 501(c)(3), your nonprofit must be organized and operated exclusively for charitable, educational, or religious purposes. You must submit IRS Form 1023 (or Form 1023-EZ for smaller organizations) and provide detailed information about your organization’s structure, activities, and finances. In addition, once granted, your nonprofit must comply with ongoing requirements, such as annual reporting (Form 990) and maintaining transparency about its activities and finances.

Dissolving a nonprofit in Oregon involves several steps. First, the board must adopt a resolution to dissolve the organization. Then, you must file a Certificate of Dissolution with the Oregon Secretary of State, along with any outstanding fees. Additionally, you must notify any creditors and settle any debts, and any remaining assets must be distributed according to the nonprofit’s bylaws or applicable laws (often to another nonprofit with a similar purpose). Finally, if you have 501(c)(3) status, you'll need to inform the IRS about the dissolution.

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