The 14 Steps for Starting a Nonprofit in South Carolina [2024 Ultimate Guide]

If you're looking to start a nonprofit organization in South Carolina, 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.

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14 Steps to Starting a Nonprofit in South Carolina

• 1. Research and plan

• 2. Name your organization

• 3. Recruit incorporators and directors

• 4. Appoint a registered agent

• 5. File the Articles of Incorporation

• 6. Obtain an EIN

• 7. File an initial report

• 8. Draft bylaws

• 9. Hold an organizational meeting

• 10. Get state tax identification numbers 

• 11. Apply for federal and state tax-exempt status

• 12. Apply for charitable fundraising 

• 13. Start fundraising

• 14. Stay compliant

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1. Research and Plan

When considering starting a nonprofit in South Carolina 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 South Carolina 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.

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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 South Carolina. 

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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 online to make sure it's not already in use by another organization in the state.

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3. Incorporators and 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 South Carolina. 

• 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. 

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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.

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4. Appoint a Registered Agent

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

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5. File Articles of Incorporation

One of the most crucial steps in starting a nonprofit in South Carolina is filing the Articles of Incorporation for $25. This will officially establish your nonprofit as a legal entity in the state.

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6. Get Your Employer Identification Number (EIN)

In South Carolina, 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. 

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7. File Initial Report

In South Carolina, nonprofits must file an Initial Report with the South Carolina Department of Revenue for $25.This can be done via mail or online. 

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8. Establish Bylaws

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

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9. 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.

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10. Get South Carolina State Tax Identification Numbers/Accounts

In South Carolina, your organization will need a state tax identification number. To do this, fill out Form SCDOR-111: South Carolina Department of Revenue Tax Registration Application online, or submit via mail.

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11. Apply for 501(c) Status and State Tax Exemptions

Now, 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:  Once you have your tax determination letter from the IRS, be sure to mail it to the South Carolina Department of Revenue. 

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12. Register for Charitable Solicitation

To start raising funds, your organization must submit a Registration Statement for a Charitable Organization each year and send their IRS 990 form.

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13. Start fundraising

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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.

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14. Stay Compliant

As a legal nonprofit in the state of South Carolina, 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.
  

• File annual reports: File annual reports with the IRS to maintain your nonprofit's legal and tax-exempt status.
  

• Stay Informed: Stay informed about changes to South Carolina state laws and regulations affecting nonprofit organizations. Attend training sessions, workshops, and webinars to learn about best practices and compliance requirements.

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Learn how this South Carolina nonprofit raised $14k+ for free

The Greenville Gay Men’s Chorus (GGMC) is a nonprofit organization dedicated to representing LGBTQ+ individuals through music. Their mission is to build community, foster compassion, and inspire activism both locally and globally. Through its performances and outreach efforts, GGMC seeks to create a supportive environment for LGBTQ+ individuals while advocating for equality and acceptance.

When looking to raise funds, GGMC faced high transaction fees with traditional platforms. In order to gather as much donations for their case as possible, they needed a more efficient solution and cost-efficient solution.

GGMC switched to Zeffy, a donation platform with zero transaction fees. This transition allowed them to maximize their fundraising potential, directing more resources toward community building and advocacy. In total, they were able to raise $14,778!

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Start fundraising for free with Zeffy

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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.

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Frequently Asked Questions (FAQs)

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