So, you want to start a nonprofit?
Starting a nonprofit can be an exciting way to pursue a mission you care deeply about — but it’s also a complex legal, financial, and operational process.
This page is designed to help you understand the basic steps, explore trusted resources, and decide whether forming a nonprofit is the right path for your idea.
Important note: These steps provide a high-level overview. Every organization is different, and requirements, timelines, and processes may vary based on your mission, structure, and circumstances.
Start Here: Watch the “Starting a Nonprofit” Webinar
Before diving into paperwork, we strongly recommend beginning with our free, on-demand webinar: Starting a Nonprofit led by Adam Bratton, Executive Director of The Nonprofit Partnership
This beginner-friendly, pre-recorded session walks through:
- State and federal requirements for starting a nonprofit
- What the IRS expects in a 501(c)(3) application
- Ongoing responsibilities to maintain tax-exempt status
- Community expectations — and when alternatives like fiscal sponsorship may be a better fit
BONUS: Learn about fiscal sponsorship with Players Philanthropy Fund (PPF) and how it can support charitable initiatives with back-office administration — regardless of tax-exempt status.
A High-Level Guide to Starting a Nonprofit in Pennsylvania
1. Identifying the Need and Mission
- Clearly define the problem you aim to address and who you will serve
- Assess whether the need is real, significant, and requires creating a nonprofit
- Research existing organizations — if a mission-aligned nonprofit already exists, consider partnering or exploring whether your idea could fit as a program under their work
- Confirm that forming a new nonprofit is the most effective and responsible path for your mission
2. Assemble Your Founding Board
- Pennsylvania requires a minimum of three board members
- Select individuals with relevant skills, experience, and ability to significantly commit
- Develop initial governance expectations
3. Assess Resources & Incorporate
- Understand the financial and administrative resources needed to start and sustain a nonprofit before you are legally able to fundraise
- Recognize that startup costs may require out-of-pocket expenses, similar to starting any business
- Choose a nonprofit name and verify availability through the PA Department of State
- File Articles of Incorporation with required charitable purpose language
- Retain stamped Articles for IRS and future compliance steps
4. Draft & Approve Bylaws
- Outline decision-making processes, board roles, and organizational structure
- Include IRS-required language for tax-exempt eligibility
- Have your board review and formally adopt the bylaws
5. Obtain an EIN (Employer Identification Number)
- Apply through the IRS website (free)
- Required to open a bank account, apply for grants, or hire staff
6. Apply for 501(c)(3) Federal Tax-Exempt Status
- File Form 1023 or 1023-EZ
- Prepare supporting documents: budgets, bylaws, narrative program descriptions, conflict-of-interest policy
- Processing times vary — patience is key!
7. Register with the Pennsylvania Bureau of Charitable Organizations (BCO)
- Required for most nonprofits before soliciting donations
- Determine if you qualify for an exemption
- Annual renewal is required to maintain good standing
8. Build Your Year-One Framework
- Develop a business plan outlining programs, goals, and sustainability
- Establish financial and fundraising systems
- Create communication, compliance, and administrative processes to maintain tax-exempt status
Starting Is Only the Beginning: Staying Exempt & Compliant
A significant part of “starting a nonprofit” is understanding how to remain compliant over time. Failure to meet ongoing requirements can result in penalties or loss of tax-exempt status.
Explore these essential resources:
When You’re Ready: Join The Nonprofit Partnership
The Nonprofit Partnership provides direct support to organizations that have officially received their 501(c)(3) determination.
While we are unable to offer individualized assistance during the formation phase, we are proud to welcome new nonprofits as members once they are legally established.
Membership provides access to:
- One-on-one consultations
- Governance, compliance, and fundraising guidance
- Training programs, tools, and templates
- A supportive community of nonprofit professionals