DISCLAIMER: None of the below constitutes legal advice. Please note that many options exist for engaging in nonprofit work. Any recommendations below are based on our personal experience setting up BOLT. Please note that the below list is not exhaustive of what someone must do to launch a nonprofit organization – it's only a starting point.

Please note this guide is for individuals forming organizations that are not supporting specific candidates or political parties, and that are acting for the benefit of the general public.

‼️ See the IRS definition of what qualifies as a 501(c)(3) for more.

Questions or suggestions? Email Jalen Belgrave, jalen@phillybolt.org

Design by Andrea Lie, Youth Advisory Board Member | Compiled by Jalen Belgrave, Program Manager

Setting Up Your Organization

When starting to set up your organization, it can be very helpful for you to consider several options to enhance your journey!

Below is a checklist of items you should complete or consider when starting up your organization.

🏦 Creation of 501(c)(3) and Fiscal Sponsorships

PURPOSE: 501(c)(3) status will allow your organization to be tax-exempt if your work is serving the public.

Pathways to Apply for 501(c)(3)

Option 1: Use an online filing service – Swyft Filings

To apply for 501(c)(3) status, we recommend using an online service because they will ensure all your documents are legally compliant and handle the application for you. Set aside at least $1K to cover total costs.

Option 2: Apply directly with the IRS – Applying for Tax-Exempt Status (IRS)

You can also apply directly through the IRS, which will have a lower cost, but you will have to manage and file all the necessary paperwork yourself.

Fill out the application here to receive tax-exempt status in Pennsylvania (PA).

If you do not like doing backend organizational work (e.g., HR, finances, legal) and your long-term vision aligns with a fiscal sponsor, we recommend that you choose fiscal sponsorship. See our Fiscal Sponsorship guide.

📋 Board Governance

PURPOSE: The Board of your organization holds your organization accountable to its mission. Board members carry a fiduciary responsibility, meaning they are responsible for the finances of the organization.

‼️ Read more about the responsibilities of the Board: Best Practices of Nonprofit Boards

Checklist to Develop Your Board

Select at least 3 Board members
Assign your Board members to officer roles (President, Secretary, Treasurer)
Create a Board Member job description
Ensure your Board bylaws are up to date
Create a Conflict of Interest policy, signed by all your Board members annually
Start your Board meetings, held at least quarterly

🔢 Federal EIN Number and UEI Number

Apply to receive an EIN – used on tax forms, grant applications, and more. Apply for an EIN (IRS)
Sign up for a SAM account, then request a UEI number IMMEDIATELY after – required to apply for state and federal grants.
- Create a SAM account (SAM.gov)
- Request a UEI number (SAM.gov)

💵 Financial Information

Here are three items you can consider when building financial capacity in your organization!

🎟️ Fundraising in Pennsylvania

To solicit funds in Pennsylvania, the Pennsylvania Solicitation of Funds for Charitable Purposes Act REQUIRES nonprofit organizations to report charitable contributions received from Pennsylvania residents. By completing and submitting the BCO-10 Form, you will be registered with the Bureau to solicit funds in Pennsylvania.

Here is information on how to complete the BCO-10 Form: Registration Forms
Here is the link to the BCO-10 Form: BCO-10 Registration Statement (PDF)

🫂 HR and Payroll

Managing HR and payroll can be difficult! Here are two items you should consider when building your HR and payroll capacity.

Gusto
Midatlantic Employers' Association

🪪 Insurance

PURPOSE: It's standard for your organization to be protected against potential litigation, even if your organization is doing amazing work with the best of intent. At a minimum, you should seek General Commercial Liability, Professional Liability, and Directors and Officers insurance with $1M in coverage.

Start Your Search

Insureon – Cost varies: $1K–$5K

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