Introduction: Start a 501(c)(3) and Make a Difference
As I reflect on the journey of struggle and hope, I am reminded that greatness often begins with small, deliberate steps. Just as our journey to freedom was built one small victory at a time, so too can you begin your journey toward building a legacy of service by starting a nonprofit. The power of a 501(c)(3) organization is that it allows you to give back, uplift communities, and create lasting change for generations to come.
In this guide, I will show you how to start a 501(c)(3). This is a powerful tool that can help you transform your vision into reality, to not only help others but to also become part of the enduring legacy of people who made a difference. Much like the battles I faced, this journey will require perseverance, but with determination, you will succeed.
“It always seems impossible until it’s done.” – Nelson Mandela, Long Walk to Freedom
Step 1: Ensure Your Organization Meets the Requirements
Before we embark on this journey, it is important that you ensure your nonprofit is founded on the right principles. Much like we must be grounded in values that are just, fair, and equal, so must your organization be structured with a clear sense of purpose. As I wrote in my autobiography Long Walk to Freedom, “I have walked that long road to freedom. I have tried not to falter; I have made missteps along the way. But I have discovered the secret that after climbing a great hill, one only finds that there are many more hills to climb.“
Likewise, your first hill is ensuring that your nonprofit adheres to the IRS’s guidelines for tax-exempt status. Your organization should be operated exclusively for charitable, educational, religious, or other qualifying purposes. It should not be involved in political campaigns or too much lobbying.
Step 2: Establish Your Nonprofit’s Legal Structure
The foundation of any great movement is the structure upon which it is built. Just as the struggle for freedom required a strong movement of people united in their cause, your 501(c)(3) nonprofit requires a legal structure that is sound and transparent.
- Name Your Organization: Choose a name that reflects your mission—one that speaks to the heart of your cause.
- Board of Directors: A strong, diverse board, much like the leaders of our movement, is vital. Surround yourself with individuals who share your vision and possess varied talents.
- Bylaws: Create bylaws to ensure that your nonprofit operates ethically, justly, and transparently.
- Articles of Incorporation: Filing your articles of incorporation with your state’s Secretary of State ensures that your nonprofit is legally recognized.
“Do not judge me by my success, judge me by how many times I fell down and got back up again.” – Nelson Mandela
Mandela’s Insight: “The greatest glory in living lies not in never falling, but in rising every time we fall.”
Step 3: Complete IRS Form 1023
Filing Form 1023 is a crucial step in your journey. In my own life, the battles we fought often required paperwork, legal documents, and patience. But remember: these steps are not barriers, they are part of the process. And each form you submit is one step closer to realizing your goal.
Form 1023 is the formal request for recognition of your organization as tax-exempt under section 501(c)(3) of the Internal Revenue Code. The process can seem daunting, but with each completed section, you are laying the groundwork for something greater. You will need to provide information about your nonprofit’s mission, activities, board of directors, and finances.
In the words of Mandela, “After climbing a great hill, one only finds that there are many more hills to climb.” But these hills lead to greatness.
Mandela’s Tip: “The greatest glory in living lies not in never falling, but in rising every time we fall.”
Step 4: Pay the Filing Fee
Just as every great cause requires sacrifice, so does the process of filing for 501(c)(3) status. The IRS charges a fee to process your application, but this is a small price to pay for the potential to achieve the kind of freedom and impact that this status can bring.
- Form 1023 (Full version): $600
- Form 1023-EZ (Streamlined version): $275
Mandela often spoke of the sacrifices necessary to achieve freedom. “There is nothing like returning to a place that remains unchanged to find the ways in which you yourself have altered.” Your contribution to the process today will reap rewards tomorrow.
Step 5: Await IRS Approval
This is perhaps one of the hardest parts of the process—the waiting. But in waiting, you must remember that patience is also a form of strength. As I have shared, “I never lose. I either win or learn.” While you wait for the IRS to process your application, it’s important to keep the faith and trust that your actions are leading you to the right destination.
While the approval process may take months, know that each day you wait brings you closer to your goal.
Mandela’s Reflection: “It is said that no one truly knows a nation until one has been inside its jails.” Similarly, the real test of your nonprofit lies in the work that is done in the community, the hearts that are touched, and the lives that are changed.
Step 6: Comply with Ongoing Requirements
Once you have received your 501(c)(3) status, the journey doesn’t end. As with any movement, it is crucial to keep moving forward, to ensure that the work you began does not fade. You will need to maintain compliance by filing annual returns, keeping financial records, and ensuring transparency in all operations.
Mandela’s advice on perseverance rings true: “Do not judge me by my success, judge me by how many times I fell down and got back up again.”
Mandela’s Tip: “Lead from the back — and let others believe they are in front.”
Step 7: Stay Focused and Keep Your Mission Alive
To achieve greatness, you must stay focused on your mission. In my own life, the pursuit of justice, equality, and freedom for all was a long and difficult road, but each step forward, no matter how small, made a difference. The same is true for your nonprofit. Stay true to your purpose, and keep your mission at the forefront of your work.
As you start a 501(c)(3), remember: “It is said that no one truly knows a nation until one has been inside its jails,” Mandela wrote in Long Walk to Freedom. Similarly, the real test of a nonprofit lies in the work that is done in the community, the hearts that are touched, and the lives that are changed.
Mandela’s Final Insight: “Your playing small does not serve the world. Who are you not to be great?”
Conclusion: The Time to Act Is Now
Now is the time to take action, to step forward and start a 501(c)(3) that will benefit your community, country, and the world. Just as I fought for the freedom of my people, you too can fight for a cause that will change the world. There are challenges ahead, yes, but with determination, strategic planning, and a heart committed to service, you will overcome them.
“We must use time creatively, and forever realize that the time is always ripe to do right.”
Mandela’s Final Tip: “Success is not final, failure is not fatal: It is the courage to continue that counts.”
At Archusphere Inc., we understand that the journey to building your nonprofit can be daunting, but with the right tools, guidance, and resources, you will succeed. If you are looking for assistance or guidance in filing for 501(c)(3) status, Archusphere Inc. is here to support you every step of the way. From navigating paperwork to ensuring compliance, our team is dedicated to helping you build the nonprofit organization of your dreams.
Contact us today, and let’s work together to make the world a better place.
FAQs
How long does it take to get 501(c)(3) status?
It typically takes 2 to 12 months for the IRS to process your application, depending on its complexity.
Do I need to hire a lawyer to file for 501(c)(3)?
While it’s not necessary, consulting with a nonprofit lawyer can be beneficial to ensure everything is in order.
What if my application is denied?
If your application is denied, you can appeal the decision or correct any issues and reapply.
How can I stay compliant once I have 501(c)(3) status?
You must file annual returns with the IRS and maintain proper financial and operational records.
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