It is completely possible to start up a new non-profit without ever consulting a lawyer or accountant. However, it is also highly advisable to have a lawyer at least review your documents before you submit them to the state or federal government.
How much you should rely on a lawyer to help you start up a nonprofit organization depends in large part on you. If you have the time, energy, and confidence, you can fill out most or all of the paperwork by yourself. However, if the mere thought of legal jargon and IRS forms scare you off, or you value your time more than your money, then you are better off having a lawyer handle things for you.
If saving money is a priority:
1. Read up on what you need to do to:
- incorporate in your state as a non-profit
- Get a federal tax-exemption
- Get a state tax-exemption
2. Fill out any required forms and review them meticulously.
3. Once the forms are as clear and error-free as you can make them, have a lawyer review your documents.
How to find a lawyer:
Ideally, you want a lawyer with experience in nonprofit law. He or she should have helped other organizations incorporate and get their tax-exemptions. Or you can use a lawyer who is willing to take the time to learn what to do (for instance, someone fresh out of law school). You might be tempted to ask your lawyer friends for help, but before you take free legal help, remember this caveat: The lawyer might not have the necessary background, and might be disinclined to take the necessary time, to do the best job possible.
There are a myriad ways to find a qualified lawyer.
- Call your local United Way or other nonprofit and ask them to recommend someone.
- Call your local Bar Association or pro bono program for suggestions.
- If you live near a law school, find out whether they have a legal clinic that could help you (for instance, you might qualify for help from the law school’s Small Business Clinic, if there is one).
- Go to FindLaw or a similar online service and type “Non-profit & Tax-exempt Organizations” in the Legal Issue search and your city and state in the location search box.
Remember to keep track of all the legal (and accounting) expenses that your organization incurs, for income tax recording purposes!
More on Starting a Non-profit Organization:
- Before You Start a Non-Profit
- How to write a mission statement
- How to write non-profit bylaws
- Choosing a bank account
