Starting a 501(c)(3) nonprofit in Maine is easy, just follow these easy steps:
If you’ve been thinking about starting a 501(c)(3) nonprofit in Maine, you have come to the right place. We have developed this comprehensive guide to help you not only start a nonprofit in Maine but also make it successful.
Step 1: Name Your Maine 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.
Maine Nonprofit Naming Guidelines
The name of you pick for your organization must:
- Be distinguishable from other businesses registered in Maine.
- Not include any words or terms that could be considered grossly offensive
- Not mislead the public to think the organization was formed for any other purpose than what was listed in the Articles of Incorporation
- The name need not include an organizational designation, such as “Inc.”, “Ltd.”, “Incorporated”, or “Company”
You can read the Maine Revised Statutes for the complete rules on naming a Maine-based organization.
To learn more, read our How to Name a Nonprofit in Maine 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.
Step 2: Appoint a Maine Registered Agent
A nonprofit corporation in Maine is required to have a registered agent with a Maine 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's point of contact with the state.
To learn more, read our Maine Registered Agent guide.
Step 3: 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 Maine MUST include:
- At least 3 directors not related to each other
- A 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 Maine Nonprofit.
Step 4: Maine Articles of Incorporation
To become a nonprofit corporation in Maine you must file Form MNPCA-6 (D), the Domestic Nonprofit Corporation Articles of Incorporation.
In order to qualify for 501(c)(3) status, the organization’s purpose must explicitly be limited to one or more of the following:
- Testing for public safety
- Fostering national/international amateur sports competition
- Preventing cruelty to animals/children
The filing fee is $40.
- Checks and money orders must be made payable to the "Maine Secretary of State"
- Accepted credit cards for the Credit Card Payment Voucher include Visa, Discover, MasterCard, and American Express.
To learn more, read our Maine Articles of Incorporation guide.
Step 5: 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 6: 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 7: 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 8: Register for a Maine Tax Account
NOTE: The mail application permits registrants to register for more tax accounts than what is available through the online portal.
Mail paper forms to the address below:
Central Registration Section
P.O. Box 1057
Augusta, Maine 04332-1057
For more information, you can call Maine Revenue Services at (207) 624-5644, fax them at (207) 287-6975 or email them at email@example.com.
Step 9: 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:
- Elect at least 3 directors not related to each other
- Register as a nonprofit with the state
- Adopt the bylaws and conflict of interest policy
- 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, your nonprofit will automatically be exempt from paying state income tax.
To file to obtain a sales and use tax exemption, find the applicable form on Maine's Sales Tax Exempt Organizations page and fill it out. You can mail this form to the mailing address below:
Maine Revenue Services
P.O. Box 1060
Augusta, ME 04332-1060
For more information, you can call Maine Revenue Services at (207) 624-9693 or fax them at (207) 287-6628
Once you have formed your Maine nonprofit, we recommend you read our guide on How To Protect your Maine Nonprofit and Keep It Compliant.