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STEP 1: Define Your Mission and Purpose

Before filing any paperwork:

• Clarify your mission - What problem will your organization solve?

• Identify your target community  - Who are you serving?

• Write a clear purpose statement that fits IRS-approved charitable purposes (educational, health, religious, scientific, or community benefit).

• Research existing nonprofits to make sure your idea fills a real gap.

Starting A Nonprofit DIY Guide 

STEP 2: Form a Founding Board

• You’ll need at least five to seven board members.

• Choose people who share your passion and bring different strengths (finance, outreach, legal, etc.).

• Schedule your first board meeting to discuss the mission and approve next steps.

STEP 3: Choose a Name and Check Availability

• Visit the Maryland Business Express portal to make sure the name you have in mind isn’t already taken.

STEP 4: Incorporate with the State of Maryland

• File Articles of Incorporation for a nonstock corporation with the

Maryland Department of Assessments and Taxation (SDAT).

• You can file online or by mail. Filing fee is around $170 (as of 2025).

• Your Articles must include:

  • Nonprofit purpose clause (specific charitable purpose)

  • Dissolution clause (what happens to assets if you dissolve)

  • Registered agent name and address

  • Once approved, your nonprofit becomes a legal corporation in Maryland 

STEP 5: Adopt Bylaws and Hold Your Organizational Meeting

• Prepare Bylaws - rules for how your nonprofit will operate (officer roles, meetings, voting, etc.).

• Approve Conflict of Interest Policy and financial control guidelines.

• Keep minutes of your meeting.

• Elect officers and authorize applying for tax-exempt status.

STEP 6: Get Your Federal Employer Identification Number (EIN)

• Apply free online with the IRS. You’ll get your EIN instantly.

• This number identifies your nonprofit for banking, grants, and tax purposes.

STEP 7: Apply for Federal Tax-Exempt Status 501(c)(3)

This is the most important step for recognition as a charitable organization.

• Complete IRS Form 1023 or Form 1023-EZ (for smaller organizations).

• Include your:

  • Articles of Incorporation

  • Bylaws

  • Financial projections (3 years)

  • Narrative of your activities

  • Board list

• Pay the IRS filing fee ($275 for 1023-EZ or $600 for standard 1023).

• Wait for your IRS Determination Letter confirming your 501(c)(3) status.

STEP 8: Register with the Maryland Secretary of State

Before you can legally solicit donations in Maryland, you must register as a Charitable Organization.

File the Charitable Organization Registration Form  (Exempt Organization Fund Raising Notice Form) with the Secretary of State.

Include a copy of your IRS letter, and $0–$300 fee (based on revenue).

STEP 9: Open Your Bank Account and Set Up Accounting

• Take your EIN + Articles of Incorporation + IRS letter to open a nonprofit bank account.

• Set up accounting software or spreadsheet to track donations, grants, and expenses.

• Consider getting bookkeeping help early.

STEP 10: Stay Compliant and Grow

• File Annual Report with the SDAT to keep your corporation active.

• File your IRS Form 990 / 990-EZ / 990-N each year.

• Renew your charitable registration with the Secretary of State annually.

• Keep detailed board meeting minutes and financial records.

• Start applying for grants, partnerships, and community programs

Need More Guidance?

Starting your nonprofit can feel like a lot, but you don’t have to do it alone. If you’d like personal guidance through the process, I offer 1:1 Nonprofit Startup Consultations where I walk you through each step and help you complete your filings with confidence.

Book a Consultation to get personalized support.