How to start an Alaska 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 an Alaska 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 Alaska:
 

PROS

CONS

Alaska not-for-profits are exempt from Alaska corporate income tax. Nonprofit corporations may provide their shareholders, directors, and officers with protection from liability. Some Alaska nonprofits have advantages in fundraising, especially 501(c)(3) nonprofits. An Alaska nonprofit corporation can outlive its original organizers, unlike partnerships and associations. Grants from organizations like the Alaska Division of Family and Youth Services or the National Science Foundation may require nonprofit status. Not-for-profit organizations may be exempt from property taxes on all or part of their real property.

Although nonprofits are good for managing a large number of members, they're not a good choice if you want to maintain control of your organization. Nonprofits require more time and money to create and maintain than a sole proprietorship or partnership.

How to form a nonprofit in Alaska

1. Developing a business plan for your Alaska 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 Alaska Secretary of State. 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 Alaska

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.

5. Applying for grants and loans in Alaska 

Grants and loans from federal, state, and private sources are a major source of funding for Alaska 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 Alaska

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

• An initial report must be filed with the Alaska Corporations Section after you file your Articles of Incorporation.
• You must also file a biennial report once every 2 years with the Alaska Department of Community and Economic Development.
• If your nonprofit has members, it must hold an annual meeting. It's important to document the meeting by taking and keeping meeting minutes.
• Alaska requires all nonprofits to maintain complete books and records of accounts, as well as minutes of corporate meetings, at its registered office.
• Nonprofits must also obtain an employer identification number from the Internal Revenue Service, as well as an Alaska employer identification number.
• The Alaska Open Meeting Act also requires that nonprofits hold meetings that are open to the public whenever discussing matters relating to state or federal funds.
• Board members should avoid conflicts of interest. They must disqualify themselves from decisions if a conflict is present.

Alaska nonprofit resources

1. Alaska Division of Corporations: The Alaska Corporations Section offers information on filing Articles of Incorporation, annual and biennial reports, and obtaining an Alaska employer identification number.
2. Alaska Volunteer Legal Handbook: Part III of this handbook provides in-depth information about creating, maintaining, and terminating an Alaska nonprofit corporation.

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 Alaska, like tax breaks and protection from personal lawsuits, but it also comes with extra paperwork and public financial records. After forming an Alaska 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