1. Life Cycle of a Nonprofit: Formation, Governance, and Dissolution
By: Jacob Berman & Megan Fouse

2. Overview Formation Governance Dissolution Idea Form an entity
File with IRS for Tax Exempt Status
Register as a Public Charity with Massachusetts
Governance
Maintenance of registration
Employment
Compensation
Volunteers
Dissolution

3. Idea Name: Order on the Court
Purpose: Help disadvantaged communities in the United States.
Mission: To empower disadvantaged youth through recreational activities with mentors in the legal community. More specifically, the organization is dedicated to empowering youth through mentorship and tennis lessons, developing leadership, teamwork, and athletic skills.

4. Q: Is a non-profit right for us?
Allowable purposes for a nonprofit corporation include:
1. any civic, educational, charitable, benevolent or religious purpose;
2. the prosecution of any antiquarian, historical, literary, scientific, medical, chiropractic, artistic, monumental or musical purpose;
3. for establishing and maintaining libraries;
4. for supporting any missionary enterprise having for its object the dissemination of religious or educational instruction in foreign countries;
5. for promoting temperance or morality in the Commonwealth;
6. for fostering, encouraging, or engaging in athletic exercises or yachting;

5. Q: Where do we start?
Name, purpose, address, fiscal year end, officers, directors
$35 Filing Fee

6. Q: Is that it? Bylaws Sole Incorporator Consent Directors Consent
Policies

7. Q: How do we get tax exempt status with the IRS?
Tax-exempt status exempts a nonprofit from paying corporate income tax on income generated from activities that are substantially related to the purposes for which the group was organized.
Nonprofits are not automatically exempt
501(c)(3) organizations fall into one of three primary categories: public charities, private foundations, and private operating foundations.
Public charity if substantial portion revenue from general public or government

8. Q: How do we get tax exempt status with the IRS?
EIN
File 1023 or 1023-EZ

9. EIN
an-employer-identification-number-ein-online
Select “Begin Application”
Then select kind of organization applying for
Select if Individual or existing business is applying
Fill in the name, address, and other details
Will automatically log out if inactive
Must complete it in one sitting
Get an EIN immediately online upon completion of the application

10. 1023 or 1023-EZ

12. Form 1023 Resources Massachusetts Society of CPAs
“CPA” stands for Certified Public Accountant 
Massachusetts Nonprofit Network 
This site is a resource for all nonprofits in Massachusetts.
Nonprofits can sign up for a membership.  

13. Q: We have filed our 1023-EZ are we done?
Register as a Public Charity in MA
Anyone who files for tax exempt status
Forms
Registration Form and Checklist
Schedule A-2
Additional Materials
Current List of Officers and Directors
Bylaws
Articles of Organization
Check $150
IRS letter designating the organization's 501(c)(3) status

14. Q: What regulations apply to our fundraising activities?
Certificate of Solicitation
Only organizations that have completed 501(c)(3) and public charity registrations may solicit tax exempt donations
Recordkeeping
Quid Pro Quo Contributions
Acknowledgement of the donation above $250

16. Q: How do we add an officer or director to the board?
Written Consent of Directors
Amount of vote required to add a new director is specified in organization bylaws
Elects the individual as a director
Elects another individual officer of the organization

18. Q: How should we structure paying our executive director?
Independent Review
No more than “fair and reasonable” compensation for services rendered to the organization
Conflict of Interest policy
Pay at similarly situated organizations
Experience, education, other qualities
Reporting
Form PC
IRS Form 990
W-2
I-9

19. Q: What should we know about soliciting volunteer mentors?
Non Profit organizations may utilize volunteers
FLSA
DOL
Volunteer Act
Non Profit Policies
Volunteer Agreement
Conduct Policies

20. Q: How do we dissolve our entity?
Confirm compliance with all registration and reporting requirements
Board approves dissolution
Complete form PC-F
Complete dissolution worksheet
Draft administrative petition to the AGO

21. Q: How do we dissolve our entity?
Submit the Package to the AGO
If all is correct, we will receive notice from the AGO that we are dissolved
Must inform the IRS and MA Secretary of State

22. Questions?
For more information please visit the Start Up Law Clinic’s website:
Eligibility: BU and MIT students