How to start a Virginia nonprofit

Start by doing research. Is your nonprofit serving a mission in the community? And do you have the means to maintain it? Then make your case: write your mission statement, think about a name, and select your directors carefully. After that, all there’s left to do is file. 

Advantages and disadvantages of having a Virginia nonprofit organization

A nonprofit is an entity or association created to promote and maintain the well-being and greater good of a community, in which profits (or surplus) are directed towards the business and mission rather than divided among the owners and shareholders. Here are the pros and cons of having one in Virginia:
 

PROS	CONS
Only your corporation's assets or property are vulnerable to your nonprofit's lawsuits or creditor claims. The personal property of trustees, officers, and managers is not at risk. Nonprofits may qualify for tax exemption.	Planning a nonprofit requires significant time and effort. If control, autonomy, and independence in running your organization are important to you, nonprofit status may not be right for you.

How to form a nonprofit in Virginia

1. Developing a business plan for your Virginia nonprofit

• Define the purpose and goals of the organization.
• Research the issues and determine what resources you have and need.
• Establish your priorities.
• Market your idea to possible volunteers and board members.
• Create a budget and timeline.

2. Writing a mission statement 

A mission statement clarifies your goals and explains how you plan to meet them. As a guideline, describe what, where, when, and how your nonprofit's purpose will be met, as well as who is going to help your nonprofit meet it. It may take a few tries to narrow your ambitions down into a workable plan.

Although you're creating a nonprofit because you want to give back to your community, you still have to meet certain requirements to protect yourself and to ensure that you achieve your organization's goals. When you create a mission statement, you can explain your organization's purpose. Consider what problem or issue your organization wants to address, then focus your statement on including the efforts and values that will guide your nonprofit to these goals.

3. Choosing a unique name 

Your nonprofit's name must be distinguishable from existing names registered with the state of Virginia. This means it shouldn't be the same as or too similar to another organization's name. The name should also not be misleading to the public – it must accurately reflect the nature and purpose of your organization.

4. Filing your Articles of Incorporation in the state of Virginia

This is the legal document that brings the business to life. It includes important information like the nature of the company and the location of the corporate headquarters. Once accepted, the corporation becomes its own legal entity.
 

Other forms and requirements for Virginia nonprofits: File an Application for Certificate of Authority to Transact Business in Virginia with the State Corporation Commission, using Form SCC 921. This is only necessary if yours is a foreign nonstock corporation intending to conduct business in Virginia. File an Application for Reservation of Corporate Name, Form SCC 631, with the State Corporation Commission. File annual reports with the State Corporation Commission. Nonprofits are required to file these reports with the Office of the Clerk on or before the last day of the twelfth month after registration, and by the same date in all future years.

5. Applying for grants and loans in Virginia 

Grants and loans from federal, state, and private sources are a major source of funding for Virginia nonprofits. A not-for-profit corporation is responsible for complying with grant requirements and keeping appropriate records. It's important for nonprofits to keep money received from grants separate and apart from the nonprofit's general fund. A good reputation in administering grant monies helps nonprofits obtain more funding from these sources. 

What to do after forming a nonprofit organization in Virginia

After forming your Virginia nonprofit organization, you must follow specific guidelines to retain your status:

• Filing your Articles of Incorporation and Certificate of Authority to Transact Business in Virginia.
• Keeping current with your annual reports and annual registration fees.

Virginia nonprofit resources

1. Virginia Conservation Network: VCN's Nonprofit Management page is geared toward conservation and environmental nonprofits. It offers tools and training to help make all organizations more effective and efficient.
2. Hampton Roads Community Foundation: This site promotes goals of philanthropy and improving southeastern Virginia's quality of life with resources in grant applications, skills enhancement through the Academy for Nonprofit Excellence, a monthly e-letter, "drop-in days" for nonprofits each month, and endowment management assistance.

Still have questions? Learn more about how to register your own nonprofit with Rocket Lawyer and get started today!
 

Key takeaways Starting a nonprofit takes planning, like creating a mission statement, picking a name, and choosing responsible directors to lead the group. There are good things about having a nonprofit in Virginia, like tax breaks and protection from personal lawsuits, but it also comes with extra paperwork and public financial records. After forming a Virginia nonprofit, it’s important to stay organized, follow state laws, and stay focused on helping the community to keep your nonprofit status.

Additional resources

Learning how to enforce a contract is just one step. Explore these additional topics to learn more and take the next steps.

• What is a nonprofit organization?
• How to start a nonprofit organization
• How are nonprofits taxed?
• How to get 501(c)(3) tax-exempt status
• How to register a nonprofit by state