How to Start a Nonprofit Corporation in Nebraska (2024 Guide)


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Start a Nonprofit Corporation in Nebraska

If you would like to form a corporation in Nebraska, you should also consider starting a nonprofit corporation since it plays a crucial role in our society, addressing a wide range of community needs and positively impacting countless lives. Starting a nonprofit corporation in Nebraska can be rewarding, but it requires careful planning, dedication, and a thorough understanding of the various legal and financial requirements.

This comprehensive guide will walk you through Starting a Nonprofit Corporation in Nebraska, from initial planning to ongoing compliance, so that you can make a meaningful difference in your community.

If you want to know more about nonprofit corporations, you may read the whole article until the end, which the Webinarcare Editorial Team had thorough research. Before starting a nonprofit corporation in Nebraska, you must cross-check all the factors and be guided by the steps.

What is a Nonprofit Corporation?

A nonprofit corporation is a legal entity formed under a given state’s specific laws and regulations in the United States. It is created to serve a public or mutual benefit rather than generating profits for its owners or shareholders. Nonprofit corporations typically operate in education, healthcare, social services, arts and culture, and environmental conservation.

In a nonprofit corporation, any surplus income the organization generates is reinvested into its programs and services rather than distributed to shareholders or members. This allows nonprofits to focus on fulfilling their mission and addressing community needs without the pressure to maximize profits.

An example of a nonprofit corporation in Nebraska is Food Bank for the Heartland – Distributes food to those in need across Nebraska and western Iowa..

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Steps on How to Start a Nonprofit Corporation in Nebraska

To start a nonprofit corporation in Nebraska, you must follow the below steps that, include research and planning, choosing a corporate name, appointing directors, filing for Articles of Incorporation, creating corporate bylaws, holding the initial board of directors, issuing stock, obtaining required licenses and permits, registering with state tax agencies, Biennial reporting and ongoing compliance. All these steps are basic ones. It can be changed depending on the type of corporation you form and the nature of your business.

Step 1: Research and Planning

Before starting your nonprofit corporation in Nebraska, you must research and plan. This stage is critical to the success of your nonprofit, as it will help you refine your mission, identify potential supporters, and avoid pitfalls. By conducting thorough research and developing a well-informed plan, you can establish a nonprofit corporation that makes a real difference in the lives of those you serve.

Step 2: Choose a Name for the Nonprofit

Once you have a clear vision for your Nebraska nonprofit corporation, it’s time to choose a name. Your organization’s name should be unique, memorable, and reflective of your mission and purpose. Follow these steps to choose and register your nonprofit’s name in Nebraska:

Consider the Mission and Purpose when Choosing the Name

Your nonprofit’s name should be closely tied to its mission and purpose, making it clear to potential supporters what your organization is about. Choose a name that is meaningful and easy to remember, as this will help with marketing and fundraising efforts.

Check for Name Availability with the Nebraska Secretary of State

Before registering your nonprofit’s name, you must ensure another organization still needs to use it in Nebraska. You can do this by checking the Nebraska Secretary of State ‘s online database or contacting their office directly.

Register the Name

Depending on your Nebraska ‘s requirements, you may need to register your nonprofit’s name with the Secretary of State. This typically involves completing a name reservation of 120 days or registration form and paying an online reservation fee of $15, and mail reservation fee of $15. Be sure to follow your state’s specific guidelines and procedures for name registration.

To check the availability of your desired corporate name, you can search the Nebraska Secretary of State’s business name database and Nebraska Business Name Search.

If your nonprofit corporation plans to operate under a name other than its legal name, you may also need to register a fictitious or “doing business as” (DBA) name.

The DBA filing can be done by two methods, by mail and in person., which costs around $100. In addition, the DBA’s validity in Nebraska is ten years, which you can file in Nebraska Secretary of State.

You can check out How to File a DBA in Nebraska for clearer understanding.

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Step 3: Hire a Registered Agent

Hiring a Registered Agent is essential in starting a nonprofit corporation. Registered Agent is a person or company responsible for receiving important legal documents, tax notices, and other correspondence for your nonprofit corporation. They ensure that your nonprofit corporation remains compliant with state regulations and requirements. There are Nebraska Registered Agent Services to check in forming Nebraska Nonprofit Corporation.

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Step 4: Establish Governance and Bylaws

With your nonprofit’s name in place, it’s time to establish your organization’s governance structure and create bylaws. These important documents will outline how your nonprofit will be run, including the roles and responsibilities of board members, the decision-making process, and the procedures for managing finances and record-keeping.

  • Choose the Initial Board of Directors: Your nonprofit’s board of directors will guide your organization’s activities and ensure its long-term success. Choose individuals passionate about your mission, bring diverse skills and expertise to the table, and are willing to commit the time and effort needed to fulfill their responsibilities as board members. In Nebraska, you need to have at least One directors for you to operate a nonprofit corporation.
  • Create Bylaws: Your bylaws are the governing document for your nonprofit, outlining the roles and responsibilities of board members, the decision-making process, and the procedures for managing finances and record-keeping. Be sure to cover board meetings, voting, committees, officer positions, conflicts of interest, and amendment procedures. Your bylaws should be tailored to your organization’s needs and requirements and developed in consultation with an attorney experienced in nonprofit law.
  • Hold the First Board Meeting: Once your bylaws have been drafted, hold your first board meeting to review and approve them. This meeting should also include the election of officers, such as the president, vice president, secretary, and treasurer. Be sure to document the meeting’s discussions and decisions in meeting minutes, as these records will be important for maintaining your nonprofit’s legal compliance.

Step 5: Incorporate the Nonprofit

The next step in starting your Nebraska nonprofit corporation is to formally incorporate your organization with the Nebraska Secretary of State. Incorporation establishes your nonprofit as a separate legal entity and provides limited liability protection for its board members and officers. To incorporate your nonprofit, follow these steps:

Prepare the Articles of Incorporation

The Articles of Incorporation is the legal document formally establishing your nonprofit corporation. This document should include your organization’s name, purpose, Registered Agent, and principal office address. Be sure to follow your state’s specific requirements for the content and format of the Articles of Incorporation.

File the Articles of Incorporation

Once your Articles of Incorporation is complete, please submit them to the Nebraska Secretary of State’s office, along with any required filing fees. The filing process may vary depending on your state, but it typically involves mailing or submitting the documents online. Keep a copy of the filed Articles of Incorporation for your records.

Filing Articles of Incorporation in Nebraska may be done with two method that is filing online, or in-office. The Articles of Incorporation fee may vary from different state. However, in Nebraska, it costs $30 for in office filing and $25 for online filing.

  • Online Filing: Create a subcriber account/Log in to the SOS site, get the online eDelivery form, fill it, and submit online or go to office to do the proces.
  • Offline filing: there’s no offline method of filing the documents

Step 6: Apply for State and Federal Tax Exemptions

Your organization may be eligible for state and federal tax exemptions as a nonprofit corporation. Obtaining tax-exempt status can save your nonprofit money and make it more attractive to potential donors. To apply for tax exemptions, follow these steps:

Obtain an Employer Identification Number (EIN)

An EIN in Nebraska is a unique number the Internal Revenue Service (IRS) assigns to your organization. You’ll need this number to apply for tax-exempt status and open a bank account for your nonprofit. You can obtain an EIN by completing the online application on the IRS website or submitting Form SS-4 by mail or fax.

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

To apply for federal tax-exempt status, you’ll need to complete and submit Form 1023 or Form 1023-EZ, depending on the size and complexity of your organization. This application requires detailed information about your nonprofit’s finances, governance, and programs. Be prepared to provide supporting documentation, including your bylaws, Articles of Incorporation, and financial projections. You’ll also need to pay a filing fee, which varies depending on the size of your organization and the form you submit.

Apply for Nebraska Tax-Exempt Status

In addition to federal tax-exempt status, your nonprofit may be eligible for state tax exemptions. The process for applying for state tax-exempt status varies by state, so research your specific state’s requirements and procedures. This may involve submitting additional forms, documentation, and fees to the Nebraska Department of Revenue.

Step 7: Obtain the Necessary Licenses and Permits

Depending on your nonprofit’s activities and location, you may need to obtain various licenses and permits to operate legally—research local, state, and federal requirements and apply for any necessary licenses and permits. Be sure to maintain compliance by renewing licenses and permits as needed and staying up-to-date on any regulation changes.

Step 8: Develop a Fundraising Plan and Strategy

Fundraising is critical to the success of your Nebraska nonprofit corporation, providing the financial resources needed to carry out your mission and programs. Develop a comprehensive fundraising plan that outlines your goals, strategies, and timelines for raising funds. This plan should include various funding sources, such as grants, donations, and special events. Create marketing materials and strategies to promote your nonprofit’s fundraising efforts and engage potential supporters.

Step 9: Open a Bank Account for the Nonprofit

With your legal and financial foundations in place, it’s time to open a bank account for your nonprofit corporation. Choose a bank that offers services tailored to nonprofits and provides the features and support your organization needs. To open an account, you’ll typically need to provide your EIN, Articles of Incorporation, bylaws, and a resolution authorizing the account opening. Establish proper financial controls and procedures to ensure responsible management of the organization’s funds.

You can check out the Nebraska Best Banks to know which bank will suit your nonprofit corporation.

Step 10: Establish Record-Keeping Systems

Effective record-keeping and reporting are essential for maintaining your nonprofit’s legal and financial compliance and demonstrating transparency and accountability to your supporters. Set up systems for tracking financial transactions, maintaining records of your organization’s activities, and reporting to the IRS, state, and other relevant agencies. Stay up-to-date on reporting requirements and deadlines to ensure your nonprofit remains in good standing. Hiring a CPA in Nebraska for this reporting system is best.

Step 11: Launch and Promote the Nonprofit

With your Nebraska nonprofit corporation officially established and your financial and legal foundations in place, it’s time to launch your organization and begin making a difference in your community. Develop a marketing plan to promote your nonprofit’s mission and services, including creating a website, social media presence, and other marketing materials. Network with other nonprofits, community organizations, and stakeholders to build partnerships and collaborations to strengthen your organization’s impact.

Step 12: Ongoing Compliance and Management

Starting a nonprofit corporation is just the beginning – maintaining your organization’s legal and financial compliance is an ongoing responsibility. Stay informed about changes in nonprofit laws and regulations, file required Biennial Reports and financial statements, and regularly review and update your bylaws, policies, and procedures as needed. Foster positive relationships with board members, volunteers, and supporters to ensure your nonprofit’s continued success.

Cost of Forming a Nonprofit Corporation in Nebraska

In forming a nonprofit corporation in Nebraska, the filing and Biennial fees must be paid. Without it, your nonprofit corporation won’t operate. In Nebraska, the nonprofit costs $30 for in office filing and $25 for online filing, and should file an Biennial Report. You should ensure you comply with all the necessary fees and costs so your Nebraska nonprofit corporation will run successfully and smoothly.

Is Forming a Nonprofit Corporation in Nebraska Worth It?

Forming a nonprofit corporation in Nebraska can be worth it if you are dedicated to a specific cause and prepared to meet the challenges and responsibilities of running a nonprofit organization. It is essential to carefully consider your goals and resources and consult with a Business Attorney in Nebraska or other professionals experienced in nonprofit formation and management to ensure that you are making the best decision for your situation.

FAQs

What is a non-profit corporation in Nebraska?
A non-profit corporation in Nebraska is an organization that operates solely for charitable, religious, or educational purposes, and is incorporated under the state’s nonprofit corporation laws.
What steps do I need to take to start a non-profit corporation in Nebraska?
The first step is to form a Nebraska non-profit corporation by filing Articles of Incorporation with the Secretary of State in Nebraska.
What information must I include in the Articles of Incorporation for a Nebraska non-profit corporation?
The Articles of Incorporation in Nebraska must include the organization’s name, its registered agent, its purpose, the number of its members or directors, and any other requirements set forth in Nebraska’s state laws.
Is it necessary to have a registered agent for my Nebraska non-profit corporation?
Yes, under Nebraska law, every non-profit corporation must have a registered agent in the state of Nebraska.
What is the purpose of a registered agent in Nebraska?
The registered agent is the point of contact between the Nebraska non-profit corporation and the state for legal and administrative matters.
What other state-level requirements must I follow to start a non-profit corporation in Nebraska?
You may also need to file for state and federal tax exemptions, obtain any necessary licenses and permits, and follow state fundraising and solicitation regulations.
Can I use a commercial registered agent service to fulfill the requirement for a Nebraska registered agent?
Yes, a commercial registered agent can act as a registered agent for a Nebraska non-profit corporation.
How much does it cost to register a Nebraska non-profit corporation?
The Nebraska Secretary of State charges a $30 filing fee for Articles of Incorporation for nonprofit corporations.
Can I get reimbursed for the costs I incur while starting a non-profit corporation in Nebraska?
Generally, no. Nebraska’s non-profit corporation law specifically prohibits the payment of dividends or profit to tax-exempt Nebraska nonprofit corporations.
Who controls the decision-making for a Nebraska non-profit corporation?
Nebraska nonprofit corporations have a board of directors who make the major decisions for the organization.
Who can serve on the board of directors for a non-profit corporation in Nebraska?
Any adult individual who is not legally incapacitated, is a member or supporter of the non-profit corporation and is a United States citizen can serve on the board in Nebraska.
Does my Nebraska non-profit corporation need to have bylaws?
Yes, the Board of Directors must develop bylaws that detail how the organization will be run and governed, and how its board members and officers are selected.
How does someone become a member of a non-profit corporation in Nebraska?
Memberships are established in the Nebraska nonprofit corporation’s Articles of Incorporation and bylaws. Different structures provide for different mechanisms by which members are admitted to and participate in the organization.
Can a Nebraska non-profit corporation engage in for-profit activities?
Yes, and No. In Nebraska, not every activity done by a non-profit corporation would be considered “charitable.” Any business activities must fulfill or otherwise connect to achieving the non-profit’s tax-exempt goal — to advance a charitable purpose. In these instances, any profits must also go back into advancing that charitable purpose.
Can Nebraska non-profit corporations earn a profit?
Non-profit corporations in Nebraska are prohibited from earning excess (or “unrelated”) profits for the benefit of a director, officer, member or any individual. Making a profit cannot be its primary operating purpose.
How can Nebraska non-profit corporation conduct fundraising activities?
Nebraska non-profit corporations can engage in fundraising by getting permission from the Attorney General’s Office to solicit donations and gifts.
What tax exempt benefit does a Nebraska non-profit corporation receive?
The tax-exempt status of a Nebraska non-profit corporation means it is exempt from paying federal and Nebraska income taxes and any non-charitable activities it undertakes will be taxable.
Can I work for a non-profit corporation in Nebraska?
Yes. Nebraska non-profit corporations often hire paid employees and independent contractors as part of the fulfillment of their philanthropic mission.
How does Nebraska law define “charitable purposes”?
Nebraska Law covers a wide range of activities that are charitable, scientific, religious or educational in nature. These include civil defense to animal welfare to community development.
What documents must a Nebraska Non-Profit Corporation file with the IRS?
To receive federal tax-exempt status, Nebraska non-profit corporations need to file Form 1023 or 1023-EZ with the IRS along with the Nebraska Articles of Incorporation.
What special regulatory qualifications might a Nebraska non-profit Corporation need?
Some Nebraska non-profit corporations must have mandatory licenses, such animal rescue entities, financial education services, or professional associations.
How long does it take for Nebraska to approve my non-profit corporation?
Processing times for non-profit corporations vary, but the state of Nebraska typically approves Articles of Incorporation faster than many states, with a typical timeframe of a week to a few months.
Can a Nebraska non-profit corporation operate in multiple states?
Yes, a Nebraska non-profit corporation may apply for registration in other states where it will be working, fundraising, or holding assets.
What records should a Nebraska non-profit corporation keep?
Non-profits must keep up to date important records including By-laws, corporate minutes, financial reporting texts, the Articles of Incorporation, and any other paperwork required by Nebraska law.
What is considered a “significant event” a Nebraska non-profit Corporation needs to report to the state?
An event that marks a change in structure (such as merges, acquisitions or divestiture), governance, board restructuring, and leadership change or other legal activities which significant governance changes may be reported to the appropriate Nebraska office or regulatory agency.
Do all directors on the board receive the same instructions in Nebraska Non-profits?
Yes and no. Every director is supposed to be well aware of his or her fiduciary responsibilities, however different directors on the board may have different roles and may require more or less oversight or workload.
Is there a time when I should review my Nebraska nonprofit corporation’s Articles of Incorporation?
Any time you start to contemplate changing the foundation of your non-profit corporation, programming, fundraising, structure, governance, design or purpose, or merge with another Corporations, move to a new business model or location – it’s a good idea to do a review. It could impact what Articles you MUST update with Nebraska.
Can non-profit corporations in Nebraska own and maintain physical structure or real assets?
Non-profit corporations in Nebraska can buy, lease as needed, improve or otherwise participate in building ownership, real property trusts, or any other mergers or transfers just like any other businesses can with the right custom rule creation and compliance in place.
What is a non-profit organization in Nebraska?
A non-profit corporation in Nebraska is a business entity that exists to further a specific charitable, educational, or scientific purpose, and is prohibited from distributing profits to its members.
How do I start a non-profit corporation in Nebraska?
To start a non-profit corporation in Nebraska, you will need to complete the filing process with the Nebraska Secretary of State.
What are the benefits of starting a non-profit corporation in Nebraska?
Starting a non-profit corporation in Nebraska allows you to make a positive difference in your community while enjoying tax-exempt status and other benefits.
What are the requirements for starting a non-profit organization in Nebraska?
Nebraska requires that any non-profit that solicits donations register with the Nebraska Attorney General’s Office’s charitable division.
How long does it take to start a non-profit corporation in Nebraska?
The time it takes to start a non-profit in Nebraska depends on your organization’s size and complexity, but typically takes between two to three months.
What is the cost of starting a non-profit in Nebraska?
The cost of starting a non-profit corporation in Nebraska includes filling fees, legal fees, and any other costs associated with running your organization.
What is the first step in starting a non-profit corporation in Nebraska?
The first step in starting a non-profit corporation in Nebraska is to choose a name for your organization that is available and unique.
Can I reserve a non-profit corporation name in Nebraska?
Yes, to make sure that no other organization is using the name you want to use, you can reserve an available name with the Nebraska Secretary of State.
How do I register a non-profit organization in Nebraska?
You will need to file the appropriate paperwork with the Nebraska Secretary of State’s office, including Articles of Incorporation and bylaws.
What information needs to be included in the Articles of Incorporation in Nebraska?
The Articles of Incorporation in Nebraska should include the name of your organization, its purpose, and the names of its directors.
What are bylaws, and why do I need them to start a non-profit organization in Nebraska?
Bylaws are the rules and regulations that govern your non-profit organization, and they are required to be filed with the Nebraska Secretary of State’s office.
How many directors are required for a non-profit corporation in Nebraska?
One director is required to start your non-profit organization in Nebraska.
Do I need to appoint officers in my non-profit organization in Nebraska?
Yes, you will need to appoint officers to help manage your organization, such as a President, Secretary, and Treasurer.
Do I need to have a physical business address to start a non-profit corporation in Nebraska?
Yes, you will need to provide a physical address for your non-profit corporation in Nebraska.
Can a non-profit corporation in Nebraska engage in for-profit activities?
Yes, a non-profit corporation in Nebraska can engage in some for-profit activities if they are directly related to their main purpose.
Can non-profit organizations in Nebraska pay their board of directors?
It is legal for non-profit organizations in Nebraska to pay their board of directors as reasonable compensation.
What kind of taxes do non-profit organizations in Nebraska have to pay?
Non-profit organizations in Nebraska may be exempt from state sales and income tax under certain conditions Guidelines, but they could be subject to Federal tax.
Do non-profit organizations in Nebraska need to file any reports or disclosures?
Yes, non-profit organizations in Nebraska are required to file annual reports with the Nebraska Secretary of State’s office and file a Form 990 with the IRS.
What is a Form 990?
Form 990 is a report filed by non-profit organizations with the IRS that includes detailed information about their finances, governance, and operations.
Is it difficult to maintain a non-profit organization in Nebraska?
While maintaining a non-profit organization in Nebraska can be challenging, it is feasible with the right procedures in place.
What are the reporting requirements for a non-profit corporation in Nebraska?
Non-profit corporations in Nebraska are required to file an annual report and a Form 990 with the IRS.
What type of accounting practices and mechanisms are necessary for non-profits in Nebraska?
Non-profits in Nebraska should use accounting practices and mechanisms that provide financial transparency, stable financial status, and support other statement requirements for proper investor evaluation.
Do non-profit corporations in Nebraska need insurance?
Non-profit corporations in Nebraska have limits potential liabilities, but having both liability and property gets can help manage risks.
How do I get grants for my non-profit enterprise in Nebraska?
The main funding for non-profit organizations comes from donations, grants from private foundations, government grants or contracts, fundraising functions, and from its board.
Can I change the name of my non-profit corporation in Nebraska?
Yes, you can file an application with the Nebraska Secretary of State’s office to change the of your non-profit corporation’s name.
How can I dissolve a non-profit corporation in Nebraska?
You can begin the dissolution process of your non-profit corporation in Nebraska by submitting a document to the Nebraska Secretary of State.
When do non-profit corporations in Nebraska become eligible for tax-exempt status?
Non-profit corporations in Nebraska become eligible for tax-exempt status after filing the necessary paperwork with the Nebraska Secretary of State and meeting other Internal Revenue Service (IRS) requirements.
Can terminated non-profits continue impacting in Nebraska after dissolution?
Yes, they can continue to have an impact by making considerable contributions to another charitable institution.
Where is the Secretary of State located in Nebraska?
The Nebraska Secretary of State’s office is located in Lincoln, Nebraska.

Also Read

Why You Should Start Nebraska Nonprofit

One of the key reasons why you should consider starting a Nebraska nonprofit is the ability to address a specific issue or need within the community that is not being adequately met by existing organizations. Whether it’s advocating for social justice, supporting marginalized populations, or promoting environmental conservation, nonprofits are able to focus their efforts on a particular area of concern and work towards creating meaningful change.

Additionally, launching a nonprofit can provide you with a platform to amplify your voice and raise awareness about important issues. By organizing events, campaigns, and fundraisers, you can engage with your community, educate others about the cause you are passionate about, and mobilize individuals to take action. Nonprofit organizations have the power to create social change and inspire others to get involved in making a difference.

Another compelling reason to start a Nebraska nonprofit is the opportunity to build a strong network of support and collaboration. Through partnerships with other nonprofits, businesses, and government agencies, you can leverage resources, share best practices, and amplify your impact. Working together towards a common goal, you can achieve greater results and make a more significant difference in the lives of those you seek to serve.

Furthermore, starting a nonprofit allows you to engage in meaningful work that aligns with your values and beliefs. Instead of solely focusing on financial gain, you can prioritize the well-being of others and work towards creating a more just and equitable society. As a nonprofit leader, you have the power to inspire others, lead by example, and demonstrate the importance of giving back to the community.

Finally, starting a Nebraska nonprofit can be a personally fulfilling endeavor that brings a sense of purpose and satisfaction to your life. Knowing that you are making a positive impact, improving the lives of others, and leaving a lasting legacy can be incredibly rewarding and bring a sense of fulfillment that transcends personal success.

In conclusion, starting a nonprofit organization in Nebraska is a worthwhile pursuit that can benefit both you and the community. By addressing pressing issues, raising awareness, building partnerships, and engaging in meaningful work, you have the opportunity to create positive change and make a lasting impact on the world. If you have a passion for helping others and a desire to make a difference, starting a nonprofit may be the perfect avenue for you to pursue your goals and contribute to a better, more compassionate society.

Conclusion

Starting a nonprofit corporation is a rewarding and challenging endeavor that requires careful planning, dedication, and a thorough understanding of the various legal and financial requirements. By following the steps outlined in this comprehensive guide, you’ll be well on your way to creating a nonprofit that makes a meaningful difference in your community. As you embark on this journey, remember to stay focused on your mission and your organization’s impact on the lives of those you serve. Never underestimate the power of a passionate, committed team working together to improve the world.

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