Before You Start a Nonprofit
Thinking About Starting a Nonprofit?
Starting a nonprofit is an exciting opportunity to serve your community, but it's also a significant responsibility.
Before filing paperwork, take time to understand what's involved, explore your options, and build a strong foundation for long-term success.
Together SC is here to help.
Important Resources:
- Watch the Before Start A Nonprofit Video | Download the Presentation
- Watch Forms and Filings for New SC Nonprofits
- Download the Guiding Principles
- Explore Learning Opportunities
Before You Begin
Many people see a need in their community and immediately think, "I should start a nonprofit."
Sometimes that's the right answer.
Sometimes there's an even better one.
Before creating a new organization, ask yourself:
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Is another nonprofit already doing this work?
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Could I partner with an existing organization?
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Would a fiscal sponsor allow me to launch more quickly?
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Does my community truly need a new nonprofit?
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Am I prepared to lead an organization for years, not just launch one?
The answers to these questions can save time, money, and help you create greater impact.
Is Starting a Nonprofit the Right Choice?
Consider these alternatives before forming a new organization.
Partner with an Existing Nonprofit
Your idea may thrive faster by joining forces with an established organization that already has infrastructure, funding, and community trust.
Find a Fiscal Sponsor
Fiscal sponsorship allows you to begin your work under an existing nonprofit's tax-exempt status while building your program.
Launch a Community Initiative
Some community projects don't require creating a new nonprofit organization.
Local governments, schools, faith communities, and existing nonprofits may already have opportunities to collaborate.
If You Decide to Start a Nonprofit
Building a sustainable nonprofit involves much more than filing paperwork.
Step 1
Clarify Your Mission
Who will you serve?
What problem are you solving?
How will you measure success?
Step 2
Build a Strong Board & Adopt Bylaws
Recruit passionate, engaged board members who bring diverse skills and perspectives, and agree on the foundational structure of the organization.
Step 3
Incorporate in South Carolina
File Articles of Incorporation with the South Carolina Secretary of State's Business Filings Division. The fee to incorporate as a nonprofit corporation is $25.
Step 4
Apply for an EIN
Obtain a federal Employer Identification Number (EIN) from the IRS.
Step 5
Register as a Public Charity in South Carolina
File an annual Registration Statement with SC Secretary of State's Public Charities Division (or seek exemption)
Step 6
Apply for Federal Tax-Exempt Status
Most charitable nonprofits apply for 501(c)(3) recognition through the IRS.
Call the IRS 877-829-5500, 800-829-3676 or 800-829-1040 for Form 1023 and the packet that goes with it. You can also get the forms on the IRS’s website. The process takes 3-24 months. It is recommended that a lawyer and/or CPA who are knowledgeable about nonprofit tax law review your bylaws and application for tax-exemption before final submission. You might ask established nonprofits in your area for their recommendations or call Together SC for referrals.
Step 7
Develop Policies & Governance
Create financial policies, conflict of interest policies, and other governance documents that support accountability and transparency and are in line with your bylaws.
Step 8
Plan for Sustainability
Develop a realistic fundraising strategy, operating budget, and long-term vision before launching programs.
Build Your Organization on Strong Principles
The strongest nonprofits don't just meet legal requirements; they embrace best practices.
Together SC's Guiding Principles for Nonprofit Excellence provide practical guidance on governance, financial management, fundraising, human resources, legal compliance, and organizational leadership.
Whether you're launching your first nonprofit or strengthening an established organization, the Guiding Principles can help you build a healthy, sustainable organization.
Download the Guiding Principles
Continue Learning
Launching a nonprofit is just the beginning.
Explore learning opportunities designed to help nonprofit leaders succeed.
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Workshops
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Webinars
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SC Nonprofit Summit
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Leadership Programs
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Resource Library
Join South Carolina's Nonprofit Network
You don't have to build your organization alone.
Together SC connects nonprofit leaders across the state through professional development, peer learning, advocacy, and practical resources that support organizations at every stage of growth.
Whether you're just getting started or have served your community for decades, you'll find a network ready to help.
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National Council of Nonprofits - additional guidance on how to start a nonprofit
- South Carolina State Library - grant funding from corporate foundations and government entities.
- Certain retail sales by nonprofits are exempt from sales tax. Some (but very few) items purchased by nonprofits are also exempt, such as food for feeding the homeless. Once you receive your tax exempt status from the IRS, then apply to the S.C. Department of Revenue for exemption from state sales tax for items you are going to sell.
- Call the S.C. Department of Revenue at 803-898 5788 to request application #ST387 and to get more information. You can also get the forms on the Internet at http://www.sctax.org.
- Apply for local property tax exemption on real property or vehicles by calling 803-898-5473 at the S.C. Department of Revenue. Should your nonprofit qualify for an exemption from property tax your local county tax office will be notified.
- Determine if your corporation is required to obtain a business license, if it is headquartered in a municipality. South Carolina's 271 cities and towns have different ways in which they regard nonprofits. Consult your municipality's Business Licensing Office.
- As you proceed, be sure to check with an attorney or CPA who is knowledgeable about nonprofit accounting about other needed financial documents and filings.
- If you plan to solicit contributions you must file a registration statement each year with the Secretary of State.
- You can file a registration statement online or submit it by mail. It costs $50 annually to register to solicit contributions. Registered charities must also file an annual financial report with the Secretary of State within four and one-half months of the close of fiscal year. Some organizations may qualify to file an annual application for registration exemption. Although this form must be filed each year, organizations qualifying for a registration exemption do not have to pay a registration fee or file an annual financial report.
Questions?
Starting a nonprofit is a big decision.
If you're not sure where to begin, we're happy to point you toward trusted resources and learning opportunities.