1. Name Your Organization
2. Recruit Incorporators and Initial Directors
3. Appoint a Registered Agent
4. Prepare and File Articles of Incorporation
5. File Initial Report
6. Obtain an Employer Identification Number (EIN)
7. Store Nonprofit Records
8. Establish Initial Governing Documents and Policies
9. Hold Organizational Meeting of the Board of Directors
10. Get Massachusetts State Tax Identification Numbers/Accounts
11. Apply for 501(c)
12. Report Beneficial Ownership Information to FinCEN
As of January 1, 2024, millions of entities in the US need to report beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN) as part of the Corporate Transparency Act (CTA). Nonprofits without 501(c) tax exemption formed before that date must submit BOI before January 1, 2025, while those formed after must submit it within 30 days of formation. Once 501(c) tax exemption is granted, the organization may claim an exemption from BOI reporting requirements via an update filing to FinCEN. Our BOI reporting service completes the initial filing and provides support for updating your information going forward. We will:
1. Submit your beneficial ownership filings to FinCEN
2. Handle initial filing, updates, and changes as needed
3. Ensure compliance with BOI reporting requirements for $149 per year
13. Apply for State Tax Exemption(s)
With your IRS Determination Letter in hand, make sure you familiarize yourself with your state’s requirements for recognizing your nonprofit’s tax-exempt status. This is an area where requirements vary state-by-state. Many states issue their own tax-exempt certificate that can be used for sales and use tax purposes, but it may require application and periodic renewal.
To file to obtain exemption from state income tax:
Agency:
Massachusetts Department of Revenue
Agency Fee:
$0
Notes:
Submit: Registration (if not already registered), a copy of the IRS Determination Letter of Exemption granting the corporation Section 501 (c) status, a copy of the Articles of Organization filed with the Secretary of State's Office, and a copy of the IRS documentation of Employer Federal Identification Number if it is not stated on the IRS Section 501 (c) Determination Letter.
To file to obtain Sales Tax Exemption:
Agency:
Massachusetts Department of Revenue
Notes:
There is no application form for sales tax exemption; simply send in your IRS determination letter with an explanation and the department will review the request.
To apply for exemptions on local property taxes, submit Form 3ABC to your local assessor with a copy of the IRS Determination Letter.
14. Register for Charitable Solicitation (Fundraising)
This is another area where laws differ from state to state, but most states require any nonprofit soliciting donations to register to do so on an annual basis. This means registering in the state prior to soliciting any resident of that state. Registering in your home state is essential, but you may also need to register other states depending on the scope of your organization.
Massachusetts Charity Registration
Agency:
Massachusetts Attorney General - Non-Profit Organizations/Public Charities Division
Law:
Massachusetts General Laws Ch 12, §8e and 8f; Ch 68 §18 through 35
Foreign Qualification is Prerequisite:
No
Exam Required?
Not Set
Registered Agent (Special Agency) Required?
No
Automatic Exemption
More Details
Initial Registration
More Details
Registration Renewal
More Details
Contract Filing
More Details
Change of Fiscal Year
More Details
Cancelation
More Details
To fundraise nationally or online, please see our Fundraising Compliance Guide. Our services manage your initial, renewal, and exemption filings in every state.
15. Obtain Other Business Licenses & Permits
Running your nonprofit corporation legally also means securing all applicable licenses and permits. The range of local, state, and federal requirements is wide. Access resources like the Small Business Administration Business License & Permit look-up tool and search by your business type and locality.
Massachusetts nonprofits who wish to conduct bingo, casino nights, raffles, pull tabs, and other charitable games must become a charitable gaming agent at Massachusetts Lottery - Charitable Gaming Division. License requirements and fees vary based on the game.