Elizabethtown Nonprofit Formation Attorneys

A nonprofit is an organization that sets a goal that does not include simply profits and revenues; these organizations have a purpose and a goal. This does not mean a nonprofit can’t earn profits or that it can’t be lucrative, but any financial gains are beside the point.

At Burnett & Griffin, PLLC, we are nonprofit formation attorneys dedicated to helping our clients build their futures. But we’re also lifelong Kentucky residents and have deep roots in Elizabethtown and across the area. We want to help you make our small part of the world a better place, and the best way we can do that is by providing you with the legal information you need.

How To Start A Nonprofit Organization

There are two sides to starting a nonprofit organization in Kentucky – the practical side and the legal side – and they are closely related. In the practical setup, you will need to create a mission that defines your goals as an organization and assemble a board of directors and the people who will help shape what you want to build. Then, you’ll have to secure funding.

Once you’ve done that work, it’s time to begin the legal processes:

The Nonprofit Incorporation

As nonprofits are tax-exempt organizations, you’ll have to file with both the IRS and the Kentucky Secretary of State. It is relatively simple to do, but if you do not have all of your practical matters settled, this will take much longer. You will have to prepare:

• A name for your organization
• A physical address
• The organization’s mission and purpose
• The contact information for your board of directors
• A plan to dissolve the assets of the nonprofit should it ever end.

All of this information is similar to what you will present to the IRS.

Building The Organization

After registering and incorporating in Kentucky, your next step will be to build your organization, and this may require steps you didn’t expect. Nonprofits must follow strict guidelines, and to aid with that, you must craft your organizational bylaws appropriately.

The bylaws will define many important facets of the organization, from board member term length to the duties and responsibilities of each board member. These are highly important documents that will guide your organization through almost any internal conflict you may have.

Securing Tax-Exempt Status

You will file a number of forms with the IRS to get the 501(c)(3) tax exemption, and it largely depends on the type and size of your organization. Here are a few common choices:

• Form 1023: Most organizations will file this one, including churches and hospitals. These larger organizations have specific needs and schedules they must follow.
• Form 1023-EZ: This is a streamlined version of the process that allows you to get the same status. Typically, this is for much smaller organizations that do not expect to receive more than $50,000 annually for the first three years.
• Form 1024: This is a form you would fill out for any non-501(c)(3) organization, which can be more socially focused in nature. These follow distinct rules from the standard processes.

Once you’ve completed these forms and fully established your nonprofit, you will be ready to get to the important work you wish to do.

Typically, the process of applications and forms in Kentucky can take several days to review and approve. However, there are factors that can extend that time considerably. But that’s the processing time. The practical effort of building and preparing your organization can take much, much longer.

Ongoing Compliance Measures For Kentucky Nonprofits

Forming a charitable organization is a complicated one-time process, but that doesn’t mean you have no more legal hurdles to overcome. You will have to continually meet annual requirements from the state and federal government. There are three facets:

• Reporting to Kentucky: The state of Kentucky requires annual reporting on your nonprofit, the board’s actions and various organizational changes. There is a small fee for this. We can help you craft these reports so they meet Kentucky guidelines.
• Annual tax returns: Tax-exempt does not mean there is no annual tax work to complete. In fact, you must file a Form 990 with the IRS to maintain your status as a nonprofit each year.
• Record keeping: In many ways, a nonprofit is like any other organization and business, and you will need to keep thorough, detailed records. This helps with continuity planning and if there are ever any regulatory or legal claims against you.

Keeping your nonprofit compliant with the law is a matter of attention to detail and forward planning. We work hard to keep this as simple and easy as you need it to be.

Burnett & Griffin, PLLC, Helps You And Your Organization Thrive

Opening a nonprofit and building an organization that helps others is a noble goal. And when people have a noble goal or a beneficial dream, they shouldn’t have to fight so hard to make it real. We are here to help you make that fight into something much easier and manageable.

If you are in the process of opening a nonprofit organization, contact our firm in Elizabethtown by calling 270-506-0246. We’re here to listen to your ideas and your hopes, and help you build the right plan and the right organization to make those dreams a reality.