How to start a Florida 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 Florida 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 Florida:
 

PROS

CONS

Assets or property belong to the corporation. In the event of lawsuits or creditor claims, only these assets are vulnerable, not the personal property of trustees, officers, or managers. Incorporation creates a distinct legal entity and forms a layer of legal protection between the corporation and its members. Some Florida nonprofits qualify for exempt status regarding corporate income, property, and other taxes.

The planning process requires a significant amount of time and effort. If control, autonomy, and independence in corporate governance are important to you, nonprofit status might not be appropriate.

How to form a nonprofit in Florida

1. Developing a business plan for your Florida 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 Florida 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 Florida

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 Florida nonprofits: Recruit or appoint your directors. You should have at least three that are 18 or older. Designate a registered agent. File an annual report with the Florida Division of Corporations one year after you form your nonprofit. Create bylaws. Hold an organizational meeting. Create corporate records in a records book. Obtain an employer identification number. Register with the IRS and the state of Florida when you hire employees. Register with Florida's Division of Consumer Services if you're soliciting contributions from the public. Register with Florida's Department of Revenue to handle business taxes. Apply for tax-exempt status with the IRS and the Florida Department of Revenue.

5. Applying for grants and loans in Florida 

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

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

• An annual report must be filed within a year of your nonprofit's formation, then again each subsequent year. 
• A Florida nonprofit must file Form 1023, the Application for Recognition of Exemption, with the IRS to obtain status as a 501(c)(3) corporation.
• To obtain state income tax exemption, submit a copy of your 501(c)(3) application to Florida's Department of Revenue. You must also submit a copy of the determination letter you'll receive from the IRS.
• File Form 1120, Florida Corporate Income/Franchise and Emergency Excise Tax Return, with the Department of Revenue.
• For sales tax exemption in Florida, file Form DR5, Application for a Consumer's Certificate of Exemption, with the Department of Revenue.

Florida nonprofit resources

1. Florida Association of Nonprofit Organizations.: FANO is Florida's state network of nonprofits. It hosts an annual conference on building capacity. Its site offers start-up kits and a certificate program in nonprofit management.
2. Nonprofit Center of Northeast Florida: The Center prides itself on nonprofit leadership, enhancing public understanding, and facilitating collective action from the community. Its website offers networking opportunities, a library, resources, summit, board bank, an events calendar, and a newsletter.

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