Virginia Non-Profit's

Thinking of starting a Virginia non-profit? Would you like to have tax exempt status so that your non-profit won't be required to pay taxes and donors may deduct charitable donations?  If so, you've come to the right place.  We can get you started quickly and easily.

Forming a Virginia non-profit and becoming tax exempt is a multi-step process and is a bit more complicated than forming a traditional Virginia corporation or Virginia LLC.  Don't let that discourage you, though.  If you follow these steps, in order, you'll get it done.

1.  Form a Virginia non-stock corporation.  This is different than a normal Virginia corporation because it does not have "shareholders" and there is no stock in the corporation.  This is because a charity cannot have owners, in the traditional sense, that participate in the profits and equity of the charity. 

Since there are no shareholders, the Virginia non-stock corporation is controlled by members or a board of directors. Depending on the level of control that the founders want to retain over the non-stock corporation, it is sometimes advantageous to have both Members and a Board of Directors.

To form the Virginia non-stock corporation, you must file articles of incorporation with the State Corporation Commission, being sure to include a couple of key provisions required for your IRS tax exempt application.

2.  Draft by-laws specifying how the Virginia non-stock corporation will be operated.  The terms of the by-laws will need to be customized to how you will manage the affairs of the non-profit and will vary based on whether you have Members or just a Board of Directors.

3.  Draft a conflict of interest policy for your directors and members.

4.  Have your organizational meeting where you formally bring the Virginia non-profit to life, elect the initial directors, and approve the by-laws and conflict of interest policy.

5.  Obtain an EIN for the Virginia non-stock corporation from the IRS.

6.  Complete and file Form 1023 for the IRS.  This is the application for tax exempt status that, if approved, will make your non-profit tax exempt and able to offer donors a charitable deduction for their contributions.

Want help forming your Virginia non-profit?  We can form your Virginia non-stock corporation and draft the by-laws, conflict of interest policy, and organizational meeting documents for a fixed flat fee of $500.00 plus the filing fee charged by the Virginia State Corporation Commission.  Click here to get started right now.

Call us at 804-290-7990 to discuss how we can help you obtain tax exempt status.