Louisiana is home to a growing nonprofit sector. If you'd like to serve your community and local citizens, we’d love to help you get started. We’ve provided a step-by-step guide to file required forms with the state and build a solid foundation for your new nonprofit.
Louisiana is more than Mardi Gras and Cajun cuisine. This state is home to over 23,000 nonprofit organizations that impact the lives of its citizens and the parishes where they live. In this article, we provide a step-by-step process to help you start a new nonprofit in Louisiana and ensure you understand how to form a solid foundation for your organization.
Louisiana has over 23,000 registered tax-exempt organizations. These nonprofits employ hundreds of thousands of employees and have an impact on the state and each parish. Louisiana has a few extra steps that other states do when registering a nonprofit. Still, you can limit frustrations and complications if you have a strategy and guidelines to follow.
The following step-by-step guide will help you understand and file the required forms and paperwork with the state. You will also better understand how to build a solid foundation for your organization. Pay close attention to the timing of this list. By keeping to the order, you can eliminate unnecessary wait times.
Louisiana has a few rules when it comes to choosing the name of your nonprofit. Before you file any documentation, you must choose a name. Corporate names can be in any language as long as they are written in English. You can’t use words that are deceptive or scandalous. The name also cannot have the following words:
The name cannot contain the phrase “doing business as” or dba. Once you’ve chosen a name, it’s time to see if it’s available. Visit Louisiana’s Secretary of State to see if any other organization has your name. If you still struggle with the right name for your nonprofit, we’ve created a naming checklist to help.
After the name, the next essential item is your nonprofit’s mission. The Internal Revenue Service (IRS) requires 501(c)(3) nonprofit organizations to benefit the public with one of the following purposes:
With this purpose, you have a focus, but now it’s time to create a unique mission statement for your nonprofit.
Since your nonprofit’s purpose statement must be the same on all state and federal applications, choosing a mission statement will make the process easier. A mission statement also influences an organization’s marketing and culture. As you move to the next step, creating a business plan, keep your mission statement in mind.
You can use your nonprofit business plan to:
Although some may consider business plans unnecessary and old-fashioned, this tool will make filing necessary state and federal paperwork easier and help you find critical startup funds.
The first section of your nonprofit business plan will lay out the organization’s programs and services. How will you fulfill your mission? What makes you different from other organizations with the same purpose? Answering these questions will have a significant impact on funders. Remember, people’s attention spans are limited, so it’s best to include images and infographics when explaining complicated ideas.
Your programs and services are critical, but you must also know who your target market is. Your marketing plan is where you should provide details on two types of markets: donors and beneficiaries.
You’ll need information on their demographics, interests, and giving ability. Your marketing plan should include communication plans for potential donors, foundations, partners, etc.
The next section will help you create your organization’s bylaws, which are required when applying for tax exemption with the IRS. Your operational plan should include day-to-day activities, necessary legal requirements, and any insurance you need. An organizational chart will help you provide details on the roles and responsibilities of your nonprofit board and staff.
The effect your nonprofit has on your community is its greatest appeal to funders. In the beginning, your organization’s impact is entirely in your mind. It’s vital to spend time on this section of your business plan and elaborate on how your organization can reach its goals.
Typically, business plan financials will include bank statements and reports. Since you don’t have any, you’ll need to research your competitors. Visit GuideStar and research similar nonprofits’ tax documents for examples of revenues and expenses. This information will give you a solid foundation for your organization’s budgets.
An Executive Summary is the first thing the funders read, but it should be the last thing you write. This section gives an overview of your business plan and describes your organization’s mission plan, target market, and how you’ll meet the needs of your community.
This section provides a space for additional documentation you may need, including:
You will need at least one Incorporator to sign your nonprofit’s Articles of Incorporation in Louisiana. The state also requires nonprofits to have a minimum of three board members. The Internal Revenue Service (IRS) has the same requirement but also suggests nonprofits have more nonprofits to ensure operations and fundraising runs effectively.
Nonprofit boards in Louisiana have no residency and no residency requirement. Board member terms are one year with a five-year maximum. Board member committees must have a minimum of two directors.
Louisiana nonprofits must also have a President, Secretary, Treasurer, and one or more Vice Presidents. The Vice President role is not required. Nonprofits can have zero, one, or more Vice Presidents. The same person can hold two or more offices. The Treasurer may also be a corporation.
Your nonprofit’s registered agent is responsible for receiving legal notices for your organization. Your registered agent must be in the state and open during regular business hours.
Louisiana nonprofits must file Articles of Incorporation and pay a $75 fee. Corporations in the following parishes must file articles online through geauxBIZ:
Other nonprofits can file online, in person, or through mail. Articles of Incorporation can be filed before the due date. In this case, nonprofits must provide a written request with the Articles of Incorporation to the Secretary of State within thirty days after delivery.
After filing your Articles of Incorporation, nonprofits will receive a certified copy. Once received, nonprofits must file a copy with the recorder of mortgages in the parish where the organization is located within thirty days.
Louisiana requires corporations to file an initial annual report simultaneously with their articles of incorporation. Visit the Secretary of State Commercial Division for necessary paperwork or file online. There is a $25 fee.
Nonprofits that choose to become a limited liability company should seek legal advice from an attorney and accountant. Limited liability companies must file Form 973 and pay $100 to the Secretary of State’s office. When naming your limited liability company, you must include ‘limited liability company, L.L.C., or L.C. in the name.
Nonprofits can also use annual reports to build trust with donors and solicit gifts from foundations. You can share your organization’s annual report on your website, social media platforms, and third-party websites like GuideStar.
After filing your articles of incorporation, you must file for an employer identification number with the Internal Revenue Service (IRS). You can file Form SS-4 immediately online or by mail. Corporations will receive a certificate of acknowledgment from the secretary of state’s office.
Before filing for tax exemption with the IRS, you must hold your nonprofit’s first board meeting. This board meeting is an opportunity to elect your officers, assign board members to committees, and start onboarding and training. It’s also time to finalize and adopt the organization’s bylaws and conflict of interest policy and approve opening a bank account.
Your nonprofit bylaws will be a roadmap for your board of directors. Nonprofit bylaws must include the following:
The IRS does not allow any board or staff member to benefit financially from an exempt nonprofit’s earnings. Your organization’s conflict of interest policy will provide rules to follow when individuals in leadership have conflicting priorities.
Nonprofits that benefit the public can apply with the IRS as 501(c)(3) organizations and file either Form 1023-EZ or Form 1023. Organizations that earn under $50,000 for the first three years can file Form 1023-EZ for $275. There is an eligibility worksheet to determine if your organization qualifies. All other 501(c)(3) nonprofits must file Form 1023 and pay $600. It can take up to six months to receive your determination letter from the IRS.
Nonprofits that primarily benefit their members may also qualify for some benefits from the IRS. These organizations must use Form 1024 and pay $600 to become 501(c)(4) organizations with the IRS.
Louisiana nonprofits can get their state tax registration number when filing their articles of incorporation. Organizations that have already filed their articles or would like to add additional accounts can visit the Louisiana Department of Revenue.
There is no fee for this. The expected turnaround is three business days online or four to six weeks by mail.
Once you receive your tax identification numbers and letter of determination from the IRS, you can apply for state tax exemptions. Louisiana has several income tax exemption options for various nonprofit types. Check out this form from the Department of Revenue for more information.
Most Louisiana nonprofits will not receive sales tax exemption. To learn more, file Form R-20125 for nonprofit sales tax exemptions.
Nonprofits that do not use professional fundraisers are exempt from registering before soliciting donations. Religious, educational, and medical organizations are also exempt from registering. You must file an exemption form to ensure you follow state law.
Organizations that do use professional fundraisers must file an initial charitable registration form and pay the required $25 fee. This form can take four to six weeks to process. Nonprofits must file this form and pay the fee every year by the initial registration date.
Nonprofits that wish to hold raffles or lottery games must obtain a gaming license from the Louisiana Office of Charitable Gaming. Learn more about state laws and regulations regarding raffles and lotteries.
Nonprofits can also use annual reports to build trust with donors and solicit gifts from foundations. You can share your organization’s annual report on your website, social media platforms, and third-party websites like GuideStar.
Louisiana nonprofits range from large hospitals and educational institutions to small parish churches. Regardless of the type of nonprofit, starting a nonprofit is similar for all organizations.
Following the steps in this guide can provide a foundation and make a significant difference in your community. After you finalize all legal requirements and are ready to raise funds,
Donorbox offers a host of tips and resources to help you build a strong board, attract and manage volunteers, and raise money. Visit our website to learn more!
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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