Starting a nonprofit can be a moving and exciting time, but fear of the unknown can get in the way. That’s why we’ve developed this step-by-step guide to help you start a nonprofit in Alaska. As you navigate state and federal documents and begin forming your board of directors, use this article as a roadmap to keep you on the right track. Good luck!
Despite being one of the least densely populated states in the U.S., Alaska boasts an impressive 5,677 active nonprofit organizations listed by the IRS. Clearly, there’s something special happening in the land of the midnight sun that makes people want to start a nonprofit in Alaska!
A significant amount of the highest-earning nonprofits in the state are related to the Alaskan Native Tribal Health Consortium or other health foundations, while many other organizations also work to protect and conserve natural resources.
Regardless of your work, Alaska has no state income tax, so even organizations that don’t qualify for tax exemption can benefit. This article will delve deeper into how to start a nonprofit in Alaska.
This step-by-step guide will give you a workable framework to start any nonprofit organization in Alaska. We’ve included requirements for the state and federal government and added links to make the process easier.
If you’re looking for additional resources while working through this process, be sure to check out our articles on how to build and train your board, start a nonprofit with no money, and raise money for your charity.
Let’s get started!
The first step in this process is choosing a name that shares who you are and what you do and encourages the public to learn more. Nonprofits must have a distinguishable name from other corporations in the state. Once you’ve decided on a few names, visit Alaska’s Department of Commerce, Community, and Economic Development to see if it’s available.
Once you’ve chosen a name for your nonprofit, you can expand on that to determine your organization’s mission and vision. A powerful mission statement will share why you exist, who you serve, and how you serve them. It should be compelling enough to excite those who know you and entice those who don’t. Your mission statement can be your best marketing tool and can be used to clearly explain your organization’s purpose on all required governmental forms.
Bonus: Stuck on naming or creating a mission for your organization? Check out our free resources to help you with both as you start your nonprofit in Alaska!
Developing a business plan can help nonprofits understand their purpose and donor base. A business plan is also an excellent tool to help you find financial support and start-up grants.
Business plans should include the following sections –
This section should describe your nonprofit’s mission and purpose, summarize your market analysis, and explain the need and how your organization is meeting this need.
Describe your nonprofit’s programs and include images, project plans, and any additional media that explains your mission.
You’ll need to perform market research to better understand your organization’s beneficiaries and donor base. This section is also where you should include your nonprofit’s marketing strategy.
Your operational plan should include the following sections: location, legalities, governing structure, and organizational structure.
Your nonprofit’s Impact Plan should clearly outline how you will meet your mission and vision.
As a new organization, this section will list potential revenue streams and your planned approach to acquire them. Some examples of different revenue streams include sponsors, major donors, foundation grants, memberships, and fundraising events.
This section can include a list of board members and primary staff along with resumes, promotional materials, and your organization’s strategic plan.
Nonprofit organizations in Alaska need at least one incorporator. An incorporator is responsible for signing the organization’s Articles of Incorporation. This individual may be a board member, but it doesn’t have to be.
Alaska also requires a minimum of three board directors and a minimum of seven titled positions, including:
Your board directors and members are the leaders of your nonprofit organization. While Alaska allows three directors to fill all positions, it may be best to increase the number of board directors for your nonprofit.
The IRS also requires nonprofits to only have three board members, but it’s clarification about the role of a nonprofit board and its members shows why more members may be necessary. The size of your board should match the needs of your organization. Nonprofit board members should be informed and active in overseeing the nonprofit’s operations and finances. Smaller boards may have difficulty serving all the needs of the organization, but larger boards may have trouble getting down to business. It’s essential to keep this in mind when forming your board of directors.
A Registered Agent is responsible for receiving legal documents for your nonprofit. They can be an individual or a business but must be located in the state of Alaska and open during regular business hours.
Now it’s time to file your nonprofit’s Articles of Incorporation with the Alaska Division of Corporations, Business and Professional Licensing. According to their website, October through February are their busiest times and may take extra time for processing. They recommend filing online for immediate processing.
There is a non-refundable fee of $50 to file online or by mail. You cannot file via email. Before filling out the forms, it’s essential to get everything you need together to make this process easier. Since you’ve already formed your board and written a business plan, this should be simple.
Here’s a list of what you’ll need to include –
An Employer Identification Number (EIN) is a nine-digit number required by the IRS to file for tax exemption and file tax returns. Nonprofits also need this number to hire staff and contractors and open a bank account. There is no fee.
Your first board meeting is extremely important, so everyone must attend. During this meeting, you’ll elect your board’s directors, vote on bylaws, define your conflict of interest policy, and approve a resolution to open a nonprofit bank account.
During this time, you should also form committees and start onboarding your members to ensure they understand their roles and responsibilities. Remember to take meeting minutes and schedule the next meeting when all members can attend.
Your nonprofit’s bylaws are a roadmap to running your organization. They outline your governing principles and ensure the long-term health of your organization. Alaska does not require corporations to file their bylaws, but you’ll need them to file for tax exemption with the IRS. Nonprofit bylaws include the following information –
Pro Tip: There are several types of insurance your nonprofit can choose to protect the organization and board members. We’ve written an article to explain the different insurance types and why you may need them here.
Applying for tax-exempt status with the IRS is the most time-consuming and costly part of this process. All nonprofit types must file with the IRS. Organizations with the following purposes can file as tax-exempt 501(c)(3) organizations –
Churches are the only organization type not required to file for 501(c)(3) status, but it may be in your best interest to encourage trust and accountability with members and parishioners.
501(c)(3) organizations that expect annual income under $50,000 for the first three years can file Form 1023-EZ for $275. You must fill out the Eligibility Worksheet to determine if you meet the requirements for this form. All other organizations must file Form 1023 for $600.
You must file an Initial Report in Alaska within six months of filing your Articles of Incorporation. Failure to file this report can result in the dissolution of your organization, so this step is essential! There is no charge for this filing.
Alaska does not have a state income tax, but you’ll want to check with your local municipality.
Before doing any business in Alaska, your nonprofit must obtain a business license; a location in Alaska is not required. You can purchase annual (one-year) or biennial (two-year) licenses for a non-refundable $50 fee. All licenses expire on December 31 of the year they are purchased.
Nonprofits and paid solicitors must register and pay a non-refundable $40 fee with the Alaska Department of Law before soliciting donations. The deadline to register is September 1 every year. Alaska does not charge late fees for organizations or solicitors that register after this date, but you cannot solicit donations until your forms are received and approved. You must renew this registration every one or two years.
Starting a nonprofit can be an exciting opportunity and a chance to make a difference in your community and the world. At Donorbox, we pride ourselves on supplying comprehensive and easily understandable resources to help you through your nonprofit journey.
As you start your nonprofit in Alaska, check out the rest of our Nonprofit Blog, filled with articles to help you train and onboard your new board, how to file tax returns, and more. Visit our website to see what else Donorbox has to offer.
Kristine Ensor is a freelance writer with over a decade of experience working with local and international nonprofits. As a nonprofit professional she has specialized in fundraising, marketing, event planning, volunteer management, and board development.
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Kristine Ensor