VOLUNTEER ATTORNEY AND CLIENT GUIDE TO FORMATION OF A
TAX-EXEMPT CALIFORNIA NONPROFIT CORPORATION

 
Dear Nonprofit Clients and Volunteer Attorneys:

Each year, the volunteer and staff attorneys in Public Counsel’s Community Development Project incorporate and obtain tax exemption for about 100 nonprofit community-based organizations.  The following is an in-depth guide to the steps involved with the process of incorporating and obtaining federal and state tax-exemption in California.  Please note that this guide should not be construed as all-inclusive or as legal services to any organization or individual.  The guide should only be used as a starting point to understand the steps involved with becoming a tax-exempt California nonprofit corporation.

Summary:  Creation of a California tax-exempt organization - includes advantages/disadvantages (Updated September 5, 2006)

For Potential Nonprofit Clients: 

   Application for Legal Assistance.  If you are seeking Public Counsel’s assistance, we recommend that you spend some time filling out this application. It will help your organization gather the information and make the decisions required throughout this process. You can save significant time by planning and answering all the questions in the application now instead of in a piecemeal fashion as they come up.  Please note -- We cannot determine whether we can assist you unless you complete the application.  [Application for Legal Assistance]

   Mission Statement.  Putting together a mission statement is an important step in establishing a basic framework for the goals and purposes of your organization. What should your mission statement say?

View Public Counsel’s Mission Statement

For Clients and Volunteer Attorneys:

   (Updated 12/21/2007) Detailed Guide (including forms) to Forming and Obtaining Tax Exemption for a California corporation

   Now That You're Incorporated: Summary of certain legal requirements applicable to Nonprofit Corporations

Other Information and Resources:

    Fee schedule: List of Initial Fees for Setting up Tax Exempt Corporation (Updated August 31, 2006)

    Top Ten Reasons for Delays in Processing Exempt Organization Applications.
Additional filing tips from the IRS.

    In depth guide to federal tax-exempt status for your organization --  IRS Publication 557: Tax Exempt Status for Your Organization.

    List of Other Resources and Organizations Providing Technical Assistance to Nonprofits

Other Useful Forms: (disclaimer)

Form of Articles of Incorporation: California Nonprofit Public Benefit Corporation
annotated form with explanatory notes / text of form - can be copied

Form of Bylaws: California Nonprofit Public Benefit Corporation
annotated form with explanatory notes / text of form - can be copied

Board of Directors Conflict Policy. 

Summary of Director conflict policies

Memorandum on liability of volunteer directors of nonprofit corporations (The attached legal memorandum addresses the California and federal law protections that exist to shield volunteer directors of nonprofit corporations from personal liability for their actions on behalf of the corporation.)

Finance Committee Investment Guidelines.

Employee Handbook for Nonprofits.