Do you dream about starting your own nonprofit? Are you ready to change the world but don’t know where to start? This step-by-step guide on starting a nonprofit in Nebraska can help you file the necessary documents, form a powerful board, and build a solid foundation for long-term success.
There are 14,728 active nonprofits in Nebraska. 10,835 of these are tax-exempt organizations. Together, these organizations reported over 21 billion dollars in revenue, a significant part of Nebraska’s economy! If you’re ready to become part of this critical group of state leaders, we’ve created a step-by-step guide on how to start your nonprofit in Nebraska.
Starting a nonprofit involves more than filing some paperwork. Successful nonprofits require a solid foundation and leadership team. In this article, we help you do all three. As you work through the steps, don’t forget to check out the resources we’ve included.
Your nonprofit’s name is the first way you’ll share your mission, promote, and fundraising for your organization. If you’re struggling to find a name that fits your needs, we’ve created a naming checklist to help.
Nebraska’s nonprofits must choose a name that does not state or imply a different purpose than what they’re registered for and must be distinct from other organizations. You must also select a unique name that does not match other organizations. Check your nonprofit’s name availability at the Nebraska Secretary of State website.
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. A nonprofit mission statement should share who you benefit, why, and how. You need a mission statement that’s unique and detailed while catching the attention of your target donors. We’ve created a guide to write an excellent 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. Your mission statement also influences your organization’s marketing and culture. As you move to the next step, creating a business plan, keep your mission statement in mind.
While you’re filing the necessary paperwork to start a nonprofit, building a solid foundation and future fundraising is essential. A nonprofit business plan is one of the best ways to do this. A business plan helps you 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 your target market. 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 following 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 may 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:
Incorporators are responsible for signing your nonprofit’s articles of incorporation. This can be done by one or more individuals. Choosing a board of directors is more crucial. Nebraska nonprofits must have a minimum of three directors. There are no residency requirements, but board terms must be one to five years. Board committees must have a minimum of two directors.
Nonprofits in Nebraska must also have a president, secretary, and treasurer. One officer is responsible for preparing agendas and minutes for the board and must authenticate the organization’s records. The same person can hold two or more of these offices.
The IRS requires nonprofits who apply for 501(c)(3) to have at least three directors but recommend more to help run the organization’s operations and fundraising.
Pro Tip: We’ve written several articles to help you build a board and recruit more members.
Nonprofits must have a registered agent to receive all legal documents for the organization. This can be an individual or a company. To start a nonprofit in Nebraska, the company must be located in the state of Nebraska and hold regular business hours. Several companies offer this service.
Now, it’s time to file your documentation. Nonprofits must file articles of incorporation with the secretary of state by mail, in person, or online. There is a $10 plus $5/page recording fee. You can expect the turnaround for this document to be one to two business days online and five to seven days if it is filed by mail.
The current online system is not set up for nonprofits. Make sure you check the required state statutes and include the following:
Check with the IRS to ensure you have included all suggested information in your Articles of Incorporation before applying for 501(c)(3) status.
After filing your articles of incorporation, you must also file for an employer identification number with the 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 taking the next step and 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 are 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.
501(c) organizations are automatically exempt from Nebraska income tax. If you have unrelated business income, you must file corporate income tax returns in the state. Nebraska does have a sales tax, but nonprofits can apply for exemption with the Department of Revenue.
Nebraska does not require nonprofits to register before soliciting donations, but some counties and municipalities in the state may request registration. Be sure to contact your local government to ensure you’re following local laws and regulations.
Nebraska nonprofits that wish to hold raffles and other lottery games must file permits and reporting forms with the Nebraska Department of Revenue Charitable Gaming Division. Nonprofits may also be required to file permits with their local municipality, so make sure you check with your local government.
Nebraska nonprofits must file biennial financial reports with the Secretary of State. Biennial reports are due in the odd-numbered years by April 1 and are deemed delinquent if filed after May 31.
Pro Tip: An annual report is more than just a necessary legal document. It can also be an effective fundraising tool. Check out Donorbox’s guide to a nonprofit annual report to learn how to use this tool to raise more funds for your new nonprofit.
Congratulations, you have now officially started a nonprofit in Nebraska! You’re ready to start changing the world; to do that, you’ll need to raise more funds. That’s where we come in. Donorbox is an excellent and affordable tool for smaller nonprofits. If you’re ready to raise money today, visit our website to see what we offer. Sign up to receive regular tips and resources to help you with everything from marketing and events to taxes!
For more tips and advice, visit our Nonprofit blog. It’s a great resource of invaluable information to help you continue building and growing your organization.
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