Use the guide below to form a 501(c)(3) nonprofit in Rhode Island. Keep in mind that the process requires forming a nonprofit corporation and getting tax-exempt status with the IRS.
Since the overall process is extremely complex, we highly recommend consulting with an attorney or using a service like Harbor Compliance for personalized top-to-bottom nonprofit formation and obtaining IRS 501(c)(3) status.
The first part of establishing your nonprofit’s name is checking to see that it’s, as stipulated in the Articles of Incorporation, “The name of any nonprofit corporation must be “distinguishable upon the records of the secretary of state.” So be sure and conduct a Business Entity Search through the state, or as many as it takes to verify the name you want is available/acceptable.
Don’t spend any money on filing forms until you have secure the name! If needed, you can file a Reservation of Entity Name (Form 620) with the state to protect it while forming.
Filing Fee: $50
All business entities need to have a registered agent for, well, essentially one reason – so they can’t say, “We never received that document.” to any state or federal agency. It will be your agent’s responsibility to officially receive and provide “Service of Process” to all state filings, tax documents, legal notices, and so on. This is why they must have a RI address, be registered/certified with the state, and hold regular business hours.
That said, you can hire an outside professional and spend up to $160/yr, or get a registered agent free of charge for the first year when you Incorporate with Harbor Compliance (see details). It’s a service we highly recommend to new nonprofits that need help but can’t afford legal assistance.
Rhode Island requires a minimum of 1 incorporator – the individual(s) who are responsible for signing and often filing the Articles of Incorporation with the state. Pretty straightforward. However, if your nonprofit will be governed by a Board of Directors vs. members things can get more interesting.
Initial Directors are recruited to oversee the nonprofit while it’s being formed, then when you conduct your initial meeting in Step 7 directors are voted on/in. There is no maximum but at least 3 need to be listed in the Articles. If possible it’s a good idea to either hire the best nonprofit lawyer you can afford or partner with professional incorporation services who provide expert assistance.
Your nonprofit bylaws are your rules. They determine how your organization is governed and structured. All incorporated nonprofits need them because if they aren’t in place the default Rhode Island state rules take over which may not be helpful. Common bylaws topics:
If this is all new to you, use a savvy Corporate Bylaws Template which you can customize for your nonprofit and get an idea of the paperwork-side of bylaws.
Once all the previous steps are covered, and you and your board/members are ready, incorporators should sign and file Articles of Incorporation (Form 200) with the Sec. of State. Information you’ll need includes:
Filing Fee: $35
If you aren’t already familiar, a nonprofit records book is where you keep physical copies of the most important paperwork – Articles of Incorporation, Bylaws, Meeting Minutes, 501.c.3 IRS Approval Letter, licenses & permits, current board members list, your annual and biannual reports, etc. Not mandatory, but very common and highly advised.
You can pick one up at pretty much any office supply store or online through Amazon of course, but we’re huge fans of savvy-sleek Corporate Kits which include gorgeous records books, binders, blank certificates and more which you can brand for as little as $99.
The first meeting is in many ways the most important because it lays the foundation. Before we list common issues covered below, here’s a Corporate Minutes Template you can customize and use to get the ball rolling.
If you want your Rhode Island nonprofit to be compliant with the federal government, get through tax season smoothly, be able to legally hire team members to help with your efforts, and set up a business bank account…you must have an EIN or Employer Identification Number.
Think of it as a social security number for your organization. To get yours the easiest way is to submit a request through the IRS Website.
It’s time for your nonprofit to become 100% compliant in terms of not only licenses/permits, but state and federal taxes. You should be able to apply for tax exempt status now that the corporate entity is established.
Two other great sites to bookmark would be the Providence district office of the Small Business Administration and the Rhode Island SBDC because they’re going to have tons of information and connections to nonprofit-friendly resources.
Yep, we saved the best for last. After everything above, and with your EIN in hand, you can now choose which institution to form the financial foundation of your nonprofit. Don’t be hasty here. If you haven’t appointed a CFO, be sure that you or someone else takes time to research different local, state, and national banks/credit unions.
If you aren’t familiar with this side of banking, there’s a lot more to it because it’s a corporate account. This means there are different fee structures, financial services, and permissions involved. How many people will be using this account? Be sure that it isn’t mixed with any other accounts, business or personal, so that you’ve got a clean and tidy record of transactions!
If you’d like help forming a 501(c)(3) Nonprofit In Rhode Island, we highly recommend looking into Harbor Compliance for personalized top-to-bottom nonprofit formation and obtaining IRS 501(c)(3) status.