What are the requirements for forming a nonprofit foundation?

Forming a nonprofit foundation in North Carolina requires a few steps. First, come up with an original name for the foundation that is not already in use. Once you have done this, create a written document called a “charter of organization” that will serve as the foundation’s governing document. The charter should contain the name of the foundation, the purpose for the foundation, and the names of the people forming it. Next, the charter must be submitted to the Secretary of State along with a filing fee. The documents should also be signed by the foundation’s directors and the principles involved. Once the documents have been accepted by the Secretary of State the foundation will be registered as an official nonprofit foundation. The final step is to obtain a federal tax-exempt status from the Internal Revenue Service (IRS). This can be done by filing IRS form 1023. The form must be filled out completely and will require financial records of the foundation as well as information on its purpose and governing documents. Once approved, the foundation will receive a federal tax exemption and will be able to operate as a nonprofit foundation.

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What are the requirements for forming a nonprofit foundation?

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