Starting a Non-Profit Organization in New Jersey: A Step-by-Step Guide

Starting a non-profit organization in New Jersey can be a complex and time-consuming process, but with the right guidance, it can be a rewarding experience. In this article, we will provide a step-by-step guide on how to start a non-profit organization in NJ.

Before we dive into the steps, it's essential to understand the basics of non-profit organizations. A non-profit organization is a tax-exempt organization that operates for the public good, rather than for profit. Non-profits can be formed for a wide range of purposes, including education, healthcare, arts, and social welfare.

In New Jersey, non-profit organizations are governed by the New Jersey Nonprofit Corporation Act (N.J.S.A. 15A:1-1 et seq.). To start a non-profit organization in NJ, you will need to follow these steps:

Step 1: Choose a Name for Your Non-Profit Organization

The first step in starting a non-profit organization in NJ is to choose a name for your organization. The name must be unique and not already in use by another non-profit organization in the state. You can search the New Jersey Secretary of State's website to see if the name is available.

Once you have chosen a name, you will need to file a name reservation application with the New Jersey Secretary of State's office. This will reserve the name for your organization for a period of 120 days.

Step 2: File Articles of Incorporation

The next step is to file Articles of Incorporation with the New Jersey Secretary of State's office. The Articles of Incorporation must include the following information:

• Name of the non-profit organization
• Address of the non-profit organization
• Purpose of the non-profit organization
• Number of directors
• Names and addresses of the directors

You can file the Articles of Incorporation online or by mail. The filing fee is currently $125.

Step 3: Obtain a Federal Tax ID Number

Once you have filed the Articles of Incorporation, you will need to obtain a Federal Tax ID Number (also known as an Employer Identification Number or EIN) from the Internal Revenue Service (IRS). This number is used to identify your non-profit organization for tax purposes.

You can apply for an EIN online or by mail. The application is free and takes only a few minutes to complete.

Step 4: Obtain a State Tax ID Number

In addition to a Federal Tax ID Number, you will also need to obtain a State Tax ID Number from the New Jersey Division of Taxation. This number is used to identify your non-profit organization for state tax purposes.

You can apply for a State Tax ID Number online or by mail. The application is free and takes only a few minutes to complete.

Step 5: Obtain a Certificate of Exemption

Once you have obtained a Federal Tax ID Number and a State Tax ID Number, you will need to obtain a Certificate of Exemption from the New Jersey Division of Taxation. This certificate confirms that your non-profit organization is exempt from paying state taxes.

You can apply for a Certificate of Exemption online or by mail. The application is free and takes only a few minutes to complete.

Step 6: Obtain a Business License

In addition to a Certificate of Exemption, you will also need to obtain a business license from the New Jersey Department of State. This license is required for all non-profit organizations that operate in the state.

You can apply for a business license online or by mail. The application is free and takes only a few minutes to complete.

Step 7: Open a Bank Account

Once you have obtained all of the necessary licenses and certificates, you will need to open a bank account in the name of your non-profit organization. This will allow you to receive and manage donations, as well as pay bills and expenses.

You can open a bank account at any bank or credit union in New Jersey. Be sure to choose a bank that offers non-profit banking services and has experience working with non-profit organizations.

Step 8: Obtain Insurance

Finally, you will need to obtain insurance to protect your non-profit organization from liability and other risks. You can purchase insurance from a variety of providers, including the New Jersey Non-Profit Insurance Group.

Conclusion

Starting a non-profit organization in New Jersey can be a complex and time-consuming process, but with the right guidance, it can be a rewarding experience. By following these steps, you can ensure that your non-profit organization is properly formed and compliant with all applicable laws and regulations.