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So You Want to Start a Nonprofit? by Brad Miller Brad Miller Law Click here to contact Mr. Miller directly. Click here to visit Brad Miller Law's website.

Because of my background in youth ministry, many of my clients come to me wanting to start a nonprofit ministry organization. Before they get started, there are some important questions they need to answer: Are financial resources a concern? Most nonprofits are started with little money and lots of faith. You may find professionals willing to donate their expertise in the formation of your new ministry (I often do so). But you should be prepared to pay standard fees for legal, accounting, and fund-raising assistance.

Legal form. Most nonprofit ministries are organized as corporations. Your attorney will assist you with a document that creates the organization (articles of incorporation) and a document containing operational rules (bylaws).

Location. Most nonprofit ministries incorporate in the state where the ministry is headquartered. Your attorney can advise you on this issue.

Organizational issues. You must decide how to handle a number of basic issues—some of which may be dictated by state law—including:

• Will the ministry use a membership style (where members have certain rights and privileges, perhaps including electing the board) or a self-perpetuating board style (where the board re-elects itself) or some combination of the two styles?

• How many directors will the ministry have?

• How is a quorum determined?

• What is the length and number of terms of the service of directors?

• What officers must the ministry have and what are their duties?

• How frequently will the governing board meet? Must the board always meet in person, or can meetings be conducted by telephone conference call or video teleconferencing?

• Will an executive committee be formed? If so, what are their duties and limitations of their functions?

• Will an audit review committee be formed?

• How will the ministry’s assets be distributed upon dissolution?

Obtaining an employer identification number. Your ministry will need an employer identification number (EIN). It is also known as a taxpayer identification number (TIN). File Form SS-4 with the Internal Revenue service to obtain this number. This form may be filed as soon as your entity is formed. You will need this number before you open a ministry bank account.

Click here to contact Mr. Miller directly.
Click here to visit Brad Miller Law's website.

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