Starting a nonprofit in New Hampshire can feel complex and overwhelming, but with the right resources and support, you can make it through the process in record time. This step-by-step guide will help you understand complicated legal documents, form a powerful board, and develop a solid foundation to build your organization.
There are currently 9,221 active tax-exempt nonprofit organizations in New Hampshire. Universities and healthcare facilities are the largest of these organizations, but many nonprofits are small volunteer-run organizations like yours. Nonprofit founders are a unique breed of individuals with plans to better their communities and the world. If you have the passion to start a nonprofit but not the confidence, we’ve created a step-by-step guide to help!
Ready to begin? Great! This guide will walk you through more than just the legal documentation. Successful nonprofits have a passionate and effective board and a solid foundation upon which to build. The following steps will help you work through all three.
Naming your nonprofit can be fun and exciting, but it can also be a struggle. Finding a name that shares your organization’s mission, speaks to your target market, and follows your state’s rules can take time and effort. If you’re having trouble finding a name, we’ve created a naming checklist to help
New Hampshire nonprofits cannot choose a name that implies they’re organized for a purpose outside what is permitted. Nonprofit names must also be distinct from other corporations in the state. Once you’ve come up with a name you like, check with New Hampshire’s Department of State to see if it’s available.
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 mission statement should include who you’ll help, why they need your help, and how you’ll do it.
Pro Tip: Visit our article on how to create your organization’s mission statement here.
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 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 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:
An Incorporator is responsible for signing the articles of incorporation. This can be one or more individuals. Choosing your board of directors is much more critical. The Internal Revenue Service (IRS) requires 501(c)(3) organizations to have a minimum of three board members but recommends organizations have more to help run the operations and fundraising effectively.
New Hampshire nonprofits must have a minimum of five voting members. These individuals cannot be related by blood or marriage. There are no residency or membership requirements, but all board committees must have a minimum of two directors.
New Hampshire officer requirements must be defined in the organization’s bylaws or by board resolution. One officer must prepare minutes for the board and authenticate the organization’s records. Two or more of these offices can be held by the same person.
Pro Tip: These regulations are meant to help you get started, but there is much more to building an effective board of directors. We’ve written several articles to help you build a board and recruit more members:
All New Hampshire nonprofits must have a Registered Agent to receive all legal documents for the organization. This can be done by an individual or a company, but the company must be in New Hampshire and hold regular business hours. Several companies offer this service.
Now, it’s finally time to make this official. New Hampshire nonprofits must file articles of incorporation with the secretary of state to become a legal organization. There is a $25 fee to file by mail or in person. Articles can be filed online for an extra $2. At least five signatures are required to file with the state. After submitting your articles to the state, provide your local city or town with a copy and an additional $5 fee.
Nonprofits must include a purpose clause and dissolution of assets provision. 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 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 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.
New Hampshire makes the tax issue easy since it does not have a state sales tax. 501(c) organizations are also automatically exempt from New Hampshire income tax. Nonprofits may also be exempt from paying property taxes to the state, but local municipalities may have different regulations. Make sure you check with your local government and use a professional accountant if possible.
New Hampshire nonprofits must register with the Attorney General Charitable Trusts Unit and file a $25 fee before soliciting donations. Some counties and municipalities may also require nonprofits to register.
The following organizations are exempt from registering with the state:
Before registering, you must have the following information available:
If your nonprofit plans to hold raffles and other lottery games, you must register with the New Hampshire Lottery Commission Investigation & Compliance Division. You must file applications for bingo, lucky 7, fantasy sports, and other games of chance and file the required forms to register the revenue and expenses for each application. Nonprofits may also be required to file permits with their local municipality so make sure you check with your local government.
All New Hampshire nonprofits must file annual reports with the state four months and fifteen days after the end of their fiscal year. There is a $75 fee associated with this form. New nonprofits will receive a cover letter with their certificate of registration that provides the filing date for their first annual report.
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 see how to use this tool to raise more funds for your new nonprofit.
Now that you’re an official nonprofit in New Hampshire, you can start promoting your organization and find startup funding to build your operations and programs. Fundraising is a necessary part of running a nonprofit. If you don’t have a background in fundraising, Donorbox has a host of resources available for all sizes of nonprofit organizations.
Visit our website to see what we have to offer, and don’t forget to visit our Nonprofit Blog, it’s filled with tips and resources to help you along this exciting journey!
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