How to start a Georgia 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 Georgia 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 Georgia:
 

PROS	CONS
Assets and property belong to your nonprofit corporation. If your nonprofit is sued, or if it is vulnerable to creditor claims, these are the only assets that can be reached. The personal property of trustees, officers, or managers can't be accessed because formation creates a buffer of protection.	The planning process for forming a nonprofit takes a significant amount of effort. It takes a lot of time and money to form a nonprofit in Georgia and to meet filing requirements. If control over your corporation and autonomy in governing it are important to you, nonprofit status may not be well-suited to your needs.

How to form a nonprofit in Georgia

1. Developing a business plan for your Georgia 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 Georgia 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 Georgia

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 Georgia nonprofits: Publish your Notice of Intent to Incorporate in the county newspaper. Apply for a federal employer identification number, or EIN, with the IRS. Create Nonprofit Bylaws. Conduct an initial meeting of your board of directors. Prepare minutes of the initial meeting. Apply for federal tax-exempt status. Apply for Georgia tax-exempt status. You must submit an IRS determination letter to the Georgia Department of Revenue along with state tax unit Form 3605, an Application for Recognition of Exemption. Apply for a Georgia ID number from the Department of Revenue. Obtain any necessary business licenses from your local government.

5. Applying for grants and loans in Georgia 

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

Georgia nonprofit resources

• Georgia Center for Nonprofits (GCN): The Center's website is a clearinghouse of information, including online support resources, job boards, newsletters, and volunteer training tools.

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