Securing your non-profit’s name is a critical first step and there’s basically three things you need to know, for everything else please refer to the Iowa Non-Profit Act section 504.401 concerning corporate names.
And finally, If needed, once you know your name is acceptable you can file an Application for Reservation of Name form for only $10 and keep it protected until it’s filed for the public record.
Forming a non-profit corporation requires a qualified Iowa Registered Agent to receive and help you officially process important documents, for example state-level paperwork or legal notices. Do keep in mind this agent must be an Iowa resident/citizen or authorized Iowa business entity with a physical street address that’s always available during regular M-F business hours.
In terms of pricing you can either hire on outside professional yourself and expect to pay up to $160/yr, or get a qualified registered agent for free when you incorporate your non-profit through IncFile or Incorporate.com.
First of all Iowa only requires a single incorporator and initial director. The incorporator (there can be more than one) is going to be named as such, and while they won’t need to deliver any Articles to the state physically they will be a part of the founding of your non-profit. Your initial director will help oversee things until official directors are voted on in Step 7.
Bookmark the Iowa Principles & Practices for Non-Profit Excellence PDF because it has some of the finer details and links to more resources, but to be frank, working with an attorney or incorporation provider really comes in handy during this foundational step because there are definitely corporate formalities to learn.
Your bylaws define your non-profit – structure, management, and governance. Common non-profit bylaws include:
To get started, check out a savvy Corporate Bylaws Template with an example that you can customize yourself and get an idea for what they look and sound like. These will be voted on and adopted or amended in your initial meeting in Step 7.
Iowa doesn’t currently offer an Articles of Incorporation form or template you can fill out, print and submit by mail. Instead it’s much more efficient to file through their Business Entity Filings process online. Also, be sure to read through Section 504.502 in the statutes to get all the very specific information on what’s entailed and required.
Once you file you’ll receive a Certificate of Acknowledgment from the state which should promptly be added to your records book which we’re going to discuss briefly in the next step.
Filing Fee: $20
This is a long-standing formality of being a for-profit or non-profit corporation that goes along with digitally keeping track of your important paperwork/data. It’s an organized physical book, or binder, that contains hard copies of the most critical paperwork – state filing documents, licenses & permits, meeting minutes, tax returns, important contracts, etc.
You can find them at nearby office supply stores or on Amazon, but we’re huge fans of Corporate Kits which include gorgeous records books/binders, blank certificated, and you can brand them for as little as $99.
Okay, this is your first official meeting and the kickoff of your newly formed non-profit. That said, let’s take a look at three critical governance mistakes non-profit boards make to give you some perspective here.
You can learn more in this Non-Profit Law Article and section 504.841 has info you should know as well. Keep in mind you’ll need to record everything that happens and have it signed. Here’s a Minutes Template you can customize and use to get the ball rolling.
An EIN, or FEIN, is a Federal Employer Identification Number and your non-profit entity is required to have one whether it has paid employees in the beginning or not. In other words, it’s like a social security number for your organization except it’s there to track financial activity to help maintain exempt status. You also need one to open up an official bank account in Step 10.
Almost every transaction your non-profit engages in will require an EIN. That said, you can get one quickly and free of charge by applying online through the IRS Website.
After all the big steps above your non-profit should be ready to obtain the proper licensing/permits as well as tax-exempt status to become 100% compliant on the local, state, and federal levels.
Two other resources it would be a good idea to add to your non-profit bookmarks would be the Des Moines district office of the Small Business Administration and IA Source Link’s page because there’s plenty of financial resources and ways to connect with the small business community.
If the business-side of banking is unfamiliar to you and you don’t yet have a Chief Financial Officer (CFO), bookmark this brief breakdown of Non-Profit Accounts compiled in mid-2016 by Investopedia. You need financial utility, services and solutions that are engineered for non-profits vs. conventional companies.
Look at their checking options, and while you may have minimal activity to begin with, don’t forget to project forward. Look at interest rates and overall fee structures. Take some time to research before choosing any local, state, or national bank or credit union because this is a critical step. Sure, you can change institutions at any time, but this is a foundational choice at conception.
If you’d like help forming a nonprofit, here are two great options:
Swyft Filings ($49 + state fees) is ideal if you’re on a budget but refuse to sacrifice quality. However if you’d like to have access to an attorney past nonprofit formation, Rocket Lawyer ($99 + state fees) is the best option.Visit Swyft Filings Or Visit Rocket Lawyer
Note that this article on how to form an Iowa non-profit isn’t a legal document or legal advice. It’s for informational purposes and the information above is subject to change. For specific legal questions regarding how to form an Iowa non-profit or business in general, please consult with a lawyer or other accredited professional.