How to start a Mississippi 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 Mississippi 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 Mississippi:
 

PROS	CONS
Assets or property at risk in lawsuits or creditor claims belong to the organization and attach only to its assets and property, not to personal property of trustees, officers, or managers. Nonprofits may qualify for tax-exemption. Registration creates a legal buffer between the organization, on one hand, and trustees, officers, and members in management, leadership, and governance, on the other.	Significant time and effort are expended when planning nonprofits. If control, autonomy, and independence in corporate governance are key values to you, nonprofit status is not well-suited to your needs. Time and money requirements for Mississippi formation and meeting filing requirements can be prohibitive.

How to form a nonprofit in Mississippi

1. Developing a business plan for your Mississippi 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 Mississippi 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 Mississippi

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 Mississippi nonprofits: File Resolution Designating Mississippi Agent to identify name and address of your Mississippi-based registered agent.  File Nonprofit Status Report if requested by the Office of the Secretary of State. The Status Report is akin to a for-profit corporation's Annual Report. It may be requested every five years. A Status Report may be voluntarily filed by a nonprofit at any time, in hard copy.

5. Applying for grants and loans in Mississippi 

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

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

• Resolution Designating Mississippi Agent: File with Secretary of State and pay a filing fee.
• Status Report(s): File with the Secretary of State, if requested, or any time voluntarily and pay a filing fee. Must be filed in hard copy format, as there are no online capabilities.
• Organizational Meeting: Once formed as a nonprofit, you must hold an organizational meeting. The meeting must take place within 2 years of the date of formation under state law or the nonprofit's charter is void.
• Charity Registration: Further registration as a charity may be required if you will be soliciting funds from the public, including online. Contact the Secretary of State's Securities and Charities Enforcement Division for information.
• FEIN: Obtain a federal employee identification number (FEIN) from the IRS.
• Unemployment Insurance Registration: If you have employees, register for unemployment insurance with Mississippi Department of Employment Security.
• Keep Records: State law requires you to record accounting information, minutes of all members and board of directors' meetings, and a list of members. The state code specifies the full list of records that must be maintained by a organization.
• Trademark and Service Mark Registration: Register with state (Mississippi Secretary of State) and federal (U.S. Patent and Trademark Office) authorities if you will be using trademarks or service marks.

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