How to Start a Nonprofit in North Dakota

Dominated by sprawling Great Plains, North Dakota is a state that is characterized by its diverse wildlife, painted canyons, and rugged Badlands. Visitors can immerse themselves in modern art at the Plains Art Museum in eastern Fargo, or enjoy the great outdoors while hiking in the Theodore Roosevelt National Park to the west.With such a vast landscape of fertile plains, it is no surprise that North Dakota’s leading industry is agriculture; in fact, the industry accounts for about one-fourth of the state’s economic base. What might come as a surprise is a new sector emerging in the scene of North Dakota’s industries: namely, the nonprofit sector. As of 2016, there were over 5,000 nonprofit organizations in North Dakota, employing around 45,500 people– that’s almost 15.6% of the state’s workforce. In addition, North Dakotans give $309.9 million to charity each year, representing 2.54 percent of household income. (source: independentsector.org)If you’re interested in joining the growing nonprofit scene in North Dakota, you’ve come to the right place. How exactly do you go about the process of starting a North Dakota-based nonprofit?The first thing to know is that there are three main steps to forming a nonprofit in North Dakota:

1. Choose your board of directors.

2. Reserve your nonprofit’s name (or check name availability).

3. File for incorporation.

For detailed explanations on each of these steps, keep reading…

Step 1: Choose your Board of Directors.

Forming a Board of Directors is an essential first step toward forming any nonprofit. Your Board will act as the governing body of your nonprofit, and will meet periodically to discuss and make decisions on behalf of your organization.At this initial stage, you’ll need to appoint three people to your Board of Directors to fill the roles of President, Treasurer, and Secretary. Be sure to include the physical addresses of each of your directors; note that their Social Security numbers are not required.You may wish to appoint more than three people to your Board- this is fine, just know that you must appoint a minimum of three members at this time.Now that you’ve formed your Board of Directors, it’s time to move onto step 2!

Step 2: Reserve your nonprofit’s name (or check name availability).

Next, reserve the name of your nonprofit. By ensuring your organization’s name is available, it prevents someone else from incorporating an organization with the same name. To do so,, you’ll need to go to the North Dakota Secretary of State website and fill out their name reservation form. As of 2018, the filing fee for this form is $10 by mail and online. You’ll need to input your organization’s full name, plus two alternative names (just in case the name you have chosen is already in use by someone else). Please note that while reserving your name is not technically required to apply for incorporation, you should still check to see if the name is available so that your application isn’t rejected. To check for name availability, go to the name availability search page on the North Dakota Secretary of State website. After you’ve reserved your nonprofit’s name or checked for name availability, you’re ready to move onto step 3: filing for incorporation.

Step 3: File for Incorporation

Finally, prepare and submit your incorporation application through the North Dakota Secretary of State website. The incorporation form can also be found here. As of 2018, the filing fee for the form is $40 by mail.When filling out your incorporation form, you’ll need to include:

• A primary address (this must be a valid physical address)

• Mission statement/purpose

• Name and address of your registered agent (must be a resident of the state)

Once you’ve submitted your application to the North Dakota Secretary of State Department, you should receive a response within 10 business days. If your application is approved, you’ll receive your Articles of Incorporation at this time.Congratulations on incorporating your North Dakota nonprofit!

A faster, easier option

Now that you have your North Dakota nonprofit corporation, you can use your state information and federal EIN to open a bank account for your nonprofit. However, setting up your nonprofit in Dakota is just part of the process of becoming a formal tax-exempt organization. The next step is to file for a federal tax exemption using either IRS form 1023 or 1023-EZ.If you’re looking for a faster, ExemptMeNow provides an easier way to go through these processes. We take the frustration and anxiety out of the incorporation and tax-exemption processes by offering an easy-to-use, streamlined platform.Ready to get started? Sign up for a free account and get ready to incorporate your North Dakota nonprofit today!