Starting a 501(c)(3) nonprofit in New Jersey is easy, just follow these easy steps:
If you’ve been thinking about starting a 501(c)(3) nonprofit in New Jersey, you have come to the right place. We have developed this comprehensive guide to help you not only start a nonprofit in New Jersey but also make it successful.
Step 1: Name Your New Jersey 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.
New Jersey Nonprofit Naming Guidelines
The name you pick for your organization must include " a New Jersey Nonprofit Corporation", "incorporated”, "corporation”, or “corp”.
You can read the official guidelines for the complete rules on naming a New Jersey-based organization.
To learn more, read our How to Name a Nonprofit in New Jersey guide.
Is the Website Domain Name Available?
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 New Jersey Registered Agent
A nonprofit corporation in New Jersey is required to have a registered agent with a New Jersey 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.
To learn more, read our How To Pick a New Jersey 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 nonprofit in New Jersey MUST include:
- At least 3 directors not related to each other
- A president
- A secretary
- A treasurer
NOTE: One person may hold two or more officer positions. However, if a document requires the signatures of two officers, it must be signed by two different officers.
To learn more, read our guide on how to select board members for your nonprofit.
Step 4: File the New Jersey Articles of Incorporation
To become a nonprofit corporation in New Jersey you must file the Articles of Incorporation with the State of New Jersey.
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
You will need to mail the following to the Secretary of State:
- Articles of Incorporation
- A nonrefundable filing fee of $75.00 payable to the Secretary of State.
To learn more, read our guide on How to File the New Jersey Articles of Incorporation
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.
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: Get Your New Jersey State Tax ID
Within 60 days of filing as a new business entity (Step 5), your organization will need to apply for a New Jersey Taxpayer Identification Number online through the Division of Revenue and Enterprise Services website.
Information: (609) 292-9292
Fax: (609) 292-4291
Web Site: www.state.nj.us/njbgs/
Filing Fee: $0
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:
As a registered incorporated nonprofit, your organization is automatically exempt from the New Jersey Corporation Business Tax. You may request an official confirmation of this from the NJ Department of Treasury Division of Taxation
Regulatory Services Branch
New Jersey Division of Taxation
PO Box 269
Trenton, NJ 08695
Information: (609) 292-5994
Once you have formed your New Jersey nonprofit, we recommend you read our guide on How To Protect your New Jersey Nonprofit and Keep It Compliant.