Wondering How To Start a Nonprofit in California?
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Navigating California's Nonprofit Landscape
California, a state renowned for its innovation, diversity, and social consciousness, provides fertile ground for nonprofit organizations to thrive. With its vibrant communities, progressive values, and abundant resources, the Golden State offers unparalleled opportunities for those seeking to make a positive impact through 501(c)(3) nonprofits. Whether your mission is to promote education, protect the environment, advocate for social justice, or start a private foundation in California, Chisholm Law Firm stands ready to welcome your vision and dedication.
7 Things to Avoid
When Starting Your Nonprofit
Improper Filing of Paperwork
Errors in incorporation documents, tax-exemption applications, and annual reporting can result in denial of tax-exempt status or costly fines. Our firm handles this entire process to meet all nonprofit formation documents and requirements in California.
Poor Reputation with Funders
Major donors and grantmakers may hesitate to support your cause if they perceive legal or governance issues, limiting your funding opportunities.
Non-Compliance with Federal Regulations
Failure to adhere to laws governing nonprofit operations, including fundraising rules and employment practices, can lead to legal trouble and expensive fines. We help establish a solid framework, including custom California nonprofit bylaws, to prevent these legal liabilities.
Lack of Proper Financial Management
Inadequate accounting practices or mismanagement of funds can jeopardize your organization's sustainability. If your organization has already lost its standing due to these issues, we can help you reinstate tax exempt status in California.
Exposure to Personal Liability
Exposure to Personal Liability If your nonprofit is not set up correctly, founders and board members may be personally liable for debts and legal issues, risking their personal assets. This risk is fully mitigated through Nonprofit Incorporation, which legally separates the organization's debts from the personal assets of the founders and board members.
Inadequate Governance Structure
Lack of clarity in your board structure, bylaws, or decision-making processes can lead to internal disputes and loss of public trust - even getting kicked off of your own board of directors. Using generic online templates or DIY sites can often miss important clauses to protect your rights in case there is a major dispute within your organization.
Inability to Maintain Tax-Exempt Status
Nonprofits not meeting ongoing compliance requirements risk losing their tax-exempt status, which can greatly hinder their operations and reputation.
To avoid these pitfalls and ensure your nonprofit's success, it's essential to work with an experienced attorney who specializes in nonprofit law. Nonprofit attorneys can guide you through the startup process, advise you regarding funding legalities, and ensure compliance with annual filings and reporting requirements. With an experienced attorney by your side, you'll have peace of mind knowing you won't be left in the dark on critical legal matters and your organization will be set up for long-term success.
8,449 Clients Successfully Served Since 2010
Understanding 501(c)(3) Nonprofits in California
In California, most 501(c)(3) nonprofits are incorporated as public benefit corporations, which are formed for charitable or public purposes
This structure offers advantages such as limited liability protection for organizers and potential tax exemptions. Religious organizations like churches and ministries may choose to incorporate as religious corporations instead.
To start a 501(c)(3) nonprofit in California, you must first incorporate your organization with the state and then apply for tax-exempt status with the Internal Revenue Service (IRS).
Meet Our Attorney Audrey K. Chisholm, Esq.
Audrey’s passion for helping people start their own nonprofit organizations came from adversity. She started her nonprofit, Revolution Leadership, Inc., as a college student. Although she had big dreams for the organization – she couldn’t seem to get grants or donations to help grow the organization. She paid for the expenses of the nonprofit out of her own pocket from her summer internships and was only able to host smaller programs due to the limited budget.
Things changed when began studying nonprofit law while in law school. She learned strategies that major law firms used when forming nonprofits for their clients and studied the best practices of the most successful nonprofits. She realized that due to the the way her nonprofit was structured – she was missing out on funding opportunities.
Using her newfound legal knowledge, she obtained 501c3 tax-exempt status and grew her nonprofit into an organization that has served 1,689 students and has awarded 34 college scholarships. As a result, Revolution Leadership® receives major grants from Wells Fargo®, Enterprise® as well as corporate sponsorships from Wal-mart®, Olive Garden® and Chick-fil-A®.
She graduated from law school and started Chisholm Law Firm, PLLC – a firm that would help others form nonprofits that would be eligible for major grant funding. Audrey’s nonprofit practice includes having successfully formed 501c3 tax-exempt nonprofit organizations for clients throughout the United States ranging from startups to a Fortune 500 company.
She is a published author and her latest book became the #1 bestselling book in the Nonprofit Management and Leadership category on Amazon called "Start A 501c3 Nonprofit That Doesn’t Ruin Your Life: How to Legally Structure Your Nonprofit to Avoid I.R.S. Trouble, Lawsuits, Financial Scandals & More!"
She has served on the board of directors of several prominent nonprofit organizations including the board of directors for Omicron Delta Kappa Leadership Honor Society for six years and the board of the Florida State University Torchbearers and Florida State University Recent Graduate Development Council with combined annual budgets exceeding $1 million.
Attorney Chisholm is a member in good standing of the Florida Bar. She is an AV-Preeminent Rated attorney by Martindale-Hubbell® which is the highest distinction a lawyer can achieve. She has been nominated for the Florida Legal Elite award, which recognizes the state’s top lawyers as selected by their peers.
Attorney Chisholm was awarded the “Certificate of Special Congressional Recognition” by the United States House of Representatives for her work in the community. She was nominated for the 2012 Presidential Citizens Medal awarded by President Obama. She was also featured in the November 2011 issue of Black Enterprise®, a national business magazine for “Making A Difference.” She is the recipient of the Mayor’s Humanitarian Award as well as the Orlando Magic® NBA Team “Magic Maker” award for her contributions to the community.
She is happily married to Dr. Juan P. Chisholm and enjoys being a wife and mother of three beautiful daughters and one son. She has over 14,000 followers on Twitter.
She believes in the Biblical principle of tithing and donates regularly to her local church as well as other charitable organizations.
EDUCATION:
- Juris Doctorate, Florida A&M University College of Law B.S.
- Florida State University La Universidad Politecnica de Valencia, Spain (studies in international business)
AWARDS & RECOGNITION:
- The Florida Bar, Member in good standing
- United States House of Representatives “Certificate of Special Congressional Recognition”
- Mayor’s Humanitarian Award
- Outstanding Lawyer Award, Phi Alpha Delta Law Fraternity
- NBA Team Orlando Magic® “Magic Maker” Award
- Outstanding Alumna Award, Omicron Delta Kappa, Inc.
- Reubin Askew Young Alumni Award, Florida State University
- Inc. 5000 Fastest Growing U.S. Private Companies
- Law Firm 500 Award for 12th fastest growing law firm in the U.S.
- Rising Star” Award for top 2.5% of lawyers in the State of Florida.
Securing California's Recognition of Your Tax-Exempt Status
Once your nonprofit receives its 501(c)(3) determination letter from the IRS, you must also obtain recognition of your tax-exempt status from the California Franchise Tax Board (FTB). Organizations with a federal determination letter can file Form 3500A with the FTB, along with a copy of their IRS letter, to request an exemption under California Revenue & Taxation Code section 23701d. There is no fee for filing Form 3500A.
California also requires most nonprofits to register with the Attorney General's Registry of Charitable Trusts before soliciting donations. Additionally, nonprofits must file biennial reports with the state to maintain good standing
“We Are Proud Of Our 100% Success Rate For Our Nonprofit Filings & 99.9% Success Rate for Trademark Filings Since 2010.*”
Clients We’ve Helped
Schedule Your FREE 30-Minute
Nonprofit Consultation (Value: $450)
We’ve Helped Past Clients Start and Grow Nonprofits That Impact the World.
100% of our clients approved for nonprofit status with the IRS as 501c3 tax-exempt nonprofits . We’ve handled hundreds of client matters for clients throughout the U.S. including a Fortune 500 company. *Disclaimer: Past results do not predict future outcomes.
100% of Past 501c3s for Clients Approved
We’ll setup your nonprofit corporation and prepare and file all of the paperwork for you to achieve nonprofit status . We’re not like the do-it-yourself websites that make you print and mail everything yourself.
Achieve 501c3
Nonprofit Status
We have clients that receive grants from Wells Fargo, Enterprise, City governments and corporate sponsorships from Walmart, ChickfilA, Target, and more. Make sure your nonprofit is structured right so that it can qualify
Stop Others From Stealing Your Name With a Federal Trademark
We’ll structure your nonprofit so that you’ll have the option to work full time or part time for yourself and earn a salary with benefits once your nonprofit starts receiving funding
Get Paid
A Salary
You’ll have unlimited legal representation regarding your application from an experienced licensed nonprofit attorney and support staff . We’ll handle questions from
Get a Fundraising Plan
that Works
We’ll structure your nonprofit with ironclad lawyer-prepared asset protection clauses to protect your savings, retirement fund and personal assets if your nonprofit is ever sued
Avoid Being Kicked Off
Your Board
We’ll structure your nonprofit with ironclad lawyer-prepared asset protection clauses to protect your savings, retirement fund and personal assets if your nonprofit is ever sued
Avoid Costly Mistakes by Working with an Experienced Nonprofit Attorney
We’ll structure your nonprofit with ironclad lawyer-prepared asset protection clauses to protect your savings, retirement fund and personal assets if your nonprofit is ever sued
Get Help
With Grant Writing
We’ll structure your nonprofit with ironclad lawyer-prepared asset protection clauses to protect your savings, retirement fund and personal assets if your nonprofit is ever sued
