How to Form a Nonprofit in Alabama

Two people forming a nonprofit in Alabama

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Starting a 501(c)(3) nonprofit in Alabama is easy, just follow these easy steps:

If you’ve been thinking about starting a 501(c)(3) nonprofit in Alabama, you have come to the right place. We have developed this comprehensive guide to help you not only start a nonprofit in Alabama but also make it successful.

In this guide, you’ll find everything you need about starting your Alabama nonprofit, including information on how to name your nonprofit, file articles of incorporation, and how to apply for IRS tax-exempt status. Just follow these 10 easy steps below:

Step 1: Name Your Alabama Nonprofit
Step 2: Register the Name in Alabama
Step 3: Appoint an Alabama Registered Agent
Step 4: Select Your Board Members and Officers
Step 5: Alabama Certificate of Formation
Step 6: Draft Bylaws and Conflict of Interest Policy
Step 7: Conduct an Organizational Meeting
Step 8: Get an EIN
Step 9: Register For A State Tax Account
Step 10: Applying for Exemption from Federal (501(c)(3) status) and State taxes

Step 1: Name Your Alabama Nonprofit

The name you select for your nonprofit will establish its brand. It is the first thing most people will learn about your organization. It is important to pick a name that both aligns with your mission and follows the rules for naming in your state.

Alabama Nonprofit Naming Guidelines

The name you pick for your organization must:

  • Be distinguishable from other businesses in Alabama.
  • Not suggest that the nonprofit corporation was formed for any other purpose than described in the Certificate of Formation

You can read the Alabama Business and Nonprofit Entities Code for the complete rules on naming an Alabama-based organization.


To learn more, read our How to Name a Nonprofit in Alabama guide.

Is the Website Domain Name Available?

If you plan to have a website for your organization, you will want to make sure that a suitable URL is currently available on GoDaddy.

You may want to buy any URLs you are interested in, to make sure they are available when you are ready to finalize and create your website.

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After registering a domain name, consider setting up a professional email account (@yourcompany.com). Google's G Suite offers a business email service that comes with other useful tools, including word processing, spreadsheets, and more. Try it for free

Step 2: Register the Name in Alabama

All nonprofits in Alabama must obtain a Certificate of Name Registration.

You can file the certificate either online or by mail with the Secretary of State.

The filing fee is $10.

Paper forms can be mailed to the address below:

Office of the Secretary of State
P.O. Box 5616
Montgomery, AL 36103

NOTE: You must obtain the Certificate of Name Registration before filing the Certificate of Formation to officially form your nonprofit with the Secretary of State.

For more information, you can call the Secretary of State at (334) 242-5324 or visit them at their website.

If you're having trouble finding a name for your Alabama nonprofit, read our How to Name a Nonprofit in Alabama guide.

Step 3: Appoint an Alabama Registered Agent

A nonprofit corporation in Alabama is required to have a registered agent with an Alabama address.

What is a Registered Agent? A registered agent is an individual or business entity responsible for receiving important legal documents on behalf of your business. Think of your registered agent as your business' point of contact with the state.

Learn more about registered agents

Incfile provides the first year of registered agent service free with nonprofit formation ($49 + State Fees)

To learn more, read our How To Pick an Alabama Registered Agent guide.

Step 4: Select Your Board Members and Officers

The directors of a nonprofit are responsible for overseeing the operations of the organization. The directors come together to form a board.

The officers of a nonprofit (such as the president or the secretary) are individuals with responsibilities, and the authority to execute based on their job descriptions.

Together, the officers and the board will come together to make up the organizational structure of your nonprofit.

The organization structure of your 501(c)(3) nonprofit in Alabama MUST include:

  • At least 3 directors not related to each other
  • A president
  • A vice president
  • A secretary
  • A treasurer

NOTE: The president and secretary positions cannot be held by the same person.

To learn more, read our guide on How to Select Board Members for Your Alabama Nonprofit

Step 5: Alabama Certificate of Formation

To become a nonprofit corporation in Alabama you must file Form SOSDF-5, the certificate of formation for domestic nonprofit corporations.

NOTE: Your organization must already have the Certificate of Name Registration before you can file the Certificate of Formation.


In order to qualify for 501(c)(3) status, the organization’s purpose must explicitly be limited to one or more of the following:

  • Charitable
  • Religious
  • Scientific
  • Literary
  • Testing for public safety
  • Fostering national/international amateur sports competition
  • Preventing cruelty to animals/children

You must mail the following to the Office of the Judge of Probate in the county where your nonprofit’s registered office is located.

  • Original Certificate of Formation
  • 2 additional copies of the Certificate of Formation

The state filing fee is $100 while county-level fees will vary by region.

To learn more, read our Alabama Certificate of Formation guide.

Step 6: Draft Bylaws and Conflict of Interest Policy

There are two documents that will be central to the running of your nonprofit:

Bylaws: These are the rules that determine how your organization will be governed and run.

Conflict of Interest Policy: These are the rules set to ensure that decisions being made for the nonprofit are based on what is best for the organization, and not being motivated by what is best for individuals.

Learn more about how to write bylaws for your nonprofit

Step 7: Conduct an Organizational Meeting

An organizational meeting is the first official meeting of your nonprofit! Some of the things that are discussed in a typical organizational meeting:

  • Taking attendance to show you have a quorum (minimum number needed)
  • Appointing temporary officers, chairmen, secretaries, etc.
  • Adoption of the bylaws
  • Adoption of conflict of interest policy

Don’t forget to record “minutes” of the meeting and have it signed by all attending directors. Here are some corporate minutes templates to help you get the ball rolling.

Step 8: Get an EIN

An EIN or Employment Identification Number (also called a Federal Tax Identification Number or Federal Employment Identification Number), is used to uniquely identify a business entity. You can think of the EIN as a social security number for your nonprofit.

The EIN is required for your organization whether or not it will have any employees.

To learn more, read our guide on how to get your EIN.

Step 9: Register For A State Tax Account

Nonprofits in Alabama must also register with the Alabama Department of Revenue for applicable state taxes.

This can be accomplished by completing My Alabama Taxes (MAT) registration online.

For more information, you can call the Department of Revenue at (334) 242-1490 or visit them at their website.

Step 10: Applying for Exemption from Federal (501(c)(3) status) and State Taxes

Applying for Exemption from Federal Taxes:

A nonprofit may be eligible for 501(c)(3) status only if its purpose is limited to one or more of the following:

Charitable, Religious, Scientific, Educational, Literary, Fostering national/international amateur sports competition, Preventing cruelty to animals/children, Testing for public safety

Before a nonprofit can apply for 501(c)(3) status it must:

  1. Elect at least 3 directors not related to each other
  2. Register as a nonprofit with the state
  3. Adopt the bylaws and conflict of interest policy
  4. Have an EIN number

Once these four conditions have been met your nonprofit can apply for 501(c)(3) tax-exempt status by filing Form-1023 online.

If your application is approved, the IRS will send you a determination letter stating that your organization is exempt from federal taxes under section 501(c)(3).

To learn more, read our guide on How to File Form 1023-EZ.

 

Applying for Exemption from State Taxes:

Once you have received your 501(c)(3) determination letter from the IRS, you will automatically be exempt from Alabama state income tax.

Most nonprofits will not be exempt from paying state sales and use tax. If your nonprofit qualifies for an exemption under Alabama Statute 40-9-1, you may fill out Form ST:EX-A1.

The mailing address for this form will depend on the region your county of formation is in.

For more information, you can call the Department of Revenue at (334) 242-1490 or visit them at their website.

Once you have formed your Alabama nonprofit, we recommend you read our guide on How To Protect your Alabama Nonprofit and Keep It Compliant.

State of Alabama Nonprofit Quicklinks