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Nonprofit Grants Sub Categories |
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Non Profit Grants That Are Faith Based, Operational, Program Development, Building Renovations & Seed Money Grants.
In order to obtain nonprofit grants, you must become a nonprofit organization. There are seven steps in the process for becoming a nonprofit organization that will enable you to be eligible for nonprofit grants.
Step One:
Reserve the name of your organization by calling your Secretary of State. See Address Chart in our Non-Profit Organizational Start-Up Kit for mailing address, telephone number and website of the authorized agency in your state. When creating a name for your organization, be creative and think of one that will describe what it is you do. Image is important and a good name can help you win more nonprofit grants.
Step Two:
Go to the state agency website (described in Step One) and obtain forms to submit Articles of Incorporation. The purposes of the Articles of Incorporation are (1) to be recognized in your state as an official non-profit organization and (2) fulfill a requirement by the IRS to be recognized as a non-profit, 501 (c) 3 organization. The Articles of Incorporation must include the purpose of the corporation, any clauses that are required by your state law, and at least the following two provisions required by the IRS:
Purpose: Said organization is organized for charitable, religious, educational, and scientific purposes, including for such purposes, the making of distributions to organizations that qualify as exempt organizations under section 501(c) 3 of the Internal Revenue Code (or corresponding section of any future federal tax code).
Dissolution: Upon dissolution of the Corporation, The Corporation shall, after paying or making provision for the payment of the debts and obligation of the corporation, distribute the remaining assets and property (after necessary expenses thereof) to such organizations as shall qualify as an exempt organization or organizations under section 501(c) 3 of the Internal Revenue Code of 1954, as named. Any such assets not disposed of shall be disposed by the Circuit Court of the county in which the principal office of the Corporation is located, exclusively for such purposes or to such organizations as said Court shall determine, which are organized for such purposes as qualify them as exempt organizations.
Be sure to keep a hard copy of the Articles of Incorporation for your records exactly as they are submitted to your state agency. Normally the state does not return this document when they send certification to you, but it is required to be included with your 1023 application to the IRS. The purpose of your organization is as important as your name in helping you get nonprofit grants. Be clear, concise and to the point, but be broad enough to make your organization eligible for as many nonprofit grants as possible. Sample Articles of Incorporation and Sample Provisions for Articles of Incorporation are included in our Non-Profit Organizational Start-Up Kit.
Step Three:
After you are assured that your name has been registered and reserved, complete and file an SS-4 form with the IRS. The form and instructions can be downloaded from the IRS website www.irs.gov. In the box that allows you to search for forms, type in SS-4. A sample SS-4 form is included in our Non-Profit Organizational Start-Up Kit and it has been completed with fictitious names to allow you to use as a model. The purpose of this form is to obtain your Employer Identification Number (EIN) so that the IRS can track your reports and your Form 1023 tax-exempt application. The EIN number is required for all nonprofit grants. You can call, fax, or mail in the form to obtain your EIN number. Instructions for doing so are contained in the IRS Instructions for filing SS-4 forms.
Step Four:
After you receive certification from your state that your organization has been incorporated and you receive your EIN number, you need to complete and file Form 1023, as revised 10/2004, before you apply for nonprofit grants. Instructions for filing the form are available at the IRS website www.irs.gov. Please read and re-read the instructions carefully as any mistakes on your part can cost you months of wasted time in securing your non-profit status. A sample completed Form 1023 is included in our Non-Profit Organizational Start-Up Kit. Keep in mind, every organization is different and your application may require different answers than those on the sample. When doing your application keep it as simple as possible. The sample provided is simple and applies to how to complete Form 1023 for small basic non-profit organizations.
Step Five:
Contact the Secretary of State (Corporate Division and Attorney General (Charities Division) to complete registration forms and fiscal annual reports. Fees vary with the size of a group’s operating budget.
Step Six:
Obtain a DUNS number. The Dunn and Bradstreet Data Universal Numbering System (DUNS) is required when applying for any federal grant. Its purpose is to improve statistical reporting of federal grants and cooperative agreements. Call for your number at 1-866-705-5711 and you can get if for free or visit their website at www.dnb.com/us.
Step Seven:
File an annual tax report to the IRS on Form 990. This report provides the IRS with a report of income receipts from nonprofit grants and other income, as well as disbursements of your organization. A sample completed Form 990 is available in our Non-Profit Organizational Start-Up Kit.
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