Starting a Nonprofit

So, you want to start a nonprofit?

Starting a nonprofit can be an exciting way to pursue a mission you care deeply about — but it’s also a complex legal, financial, and operational process.

This page is designed to help you understand the basic steps, explore trusted resources, and decide whether forming a nonprofit is the right path for your idea.

Important note: These steps provide a high-level overview. Every organization is different, and requirements, timelines, and processes may vary based on your mission, structure, and circumstances.

Start Here: Watch the “Starting a Nonprofit” Webinar

Before diving into paperwork, we strongly recommend beginning with our free, on-demand webinar: Starting a Nonprofit led by Adam Bratton, Executive Director of The Nonprofit Partnership

This beginner-friendly, pre-recorded session walks through:

• State and federal requirements for starting a nonprofit
• What the IRS expects in a 501(c)(3) application
• Ongoing responsibilities to maintain tax-exempt status
• Community expectations — and when alternatives like fiscal sponsorship may be a better fit

BONUS: Learn about fiscal sponsorship with Players Philanthropy Fund (PPF) and how it can support charitable initiatives with back-office administration — regardless of tax-exempt status.

A High-Level Guide to Starting a Nonprofit in Pennsylvania

1. Identifying the Need and Mission

• Clearly define the problem you aim to address and who you will serve
• Assess whether the need is real, significant, and requires creating a nonprofit
• Research existing organizations — if a mission-aligned nonprofit already exists, consider partnering or exploring whether your idea could fit as a program under their work
• Confirm that forming a new nonprofit is the most effective and responsible path for your mission

2. Assemble Your Founding Board

• Pennsylvania requires a minimum of three board members
• Select individuals with relevant skills, experience, and ability to significantly commit
• Develop initial governance expectations

3. Assess Resources & Incorporate

• Understand the financial and administrative resources needed to start and sustain a nonprofit before you are legally able to fundraise
• Recognize that startup costs may require out-of-pocket expenses, similar to starting any business
• Choose a nonprofit name and verify availability through the PA Department of State
• File Articles of Incorporation with required charitable purpose language
• Retain stamped Articles for IRS and future compliance steps

4. Draft & Approve Bylaws

• Outline decision-making processes, board roles, and organizational structure
• Include IRS-required language for tax-exempt eligibility
• Have your board review and formally adopt the bylaws

5. Obtain an EIN (Employer Identification Number)

• Apply through the IRS website (free)
• Required to open a bank account, apply for grants, or hire staff

6. Apply for 501(c)(3) Federal Tax-Exempt Status

• File Form 1023 or 1023-EZ
• Prepare supporting documents: budgets, bylaws, narrative program descriptions, conflict-of-interest policy
• Processing times vary — patience is key!

7. Register with the Pennsylvania Bureau of Charitable Organizations (BCO)

• Required for most nonprofits before soliciting donations
• Determine if you qualify for an exemption
• Annual renewal is required to maintain good standing

8. Build Your Year-One Framework

• Develop a business plan outlining programs, goals, and sustainability
• Establish financial and fundraising systems
• Create communication, compliance, and administrative processes to maintain tax-exempt status

Starting Is Only the Beginning: Staying Exempt & Compliant

A significant part of “starting a nonprofit” is understanding how to remain compliant over time. Failure to meet ongoing requirements can result in penalties or loss of tax-exempt status.

Explore these essential resources: