Wondering How To Start a Nonprofit in Alabama?

Avoid IRS Issues By Working With Our Attorneys

chisholm-firm-3-badges

Get a Free Consultation

Charting the Course for Nonprofit Success in the Alabama State

Alabama, with its deep-rooted history, vibrant cultural heritage, and strong community spirit, offers a nurturing environment for individuals passionate about making a difference through 501(c)(3) nonprofits. From the Appalachian foothills to the Gulf Coast's sandy shores, Alabama is ripe with opportunities for those ready to tackle the unique challenges faced by its diverse populations.

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.

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.

Lack of Proper Financial Management

Inadequate accounting practices or mismanagement of funds can jeopardize your organization's finances and risk your tax-exempt status.

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.

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.

Image 17

8,449 Clients Successfully Served Since 2010

all-logos

Client Testimonials

Client Raised $248k

youtube-video-thumbnail

Our Client’s Nonprofit Raised $248K in 12 months & Received Our "Six Figure Nonprofit Award

5stars-testimonials

Paulie Z

- Paulie Z Foundation -

Client Raised $120k

youtube-video-thumbnail

Our Client’s Nonprofit Raised $120k in 12 months & Received Our "Six Figure Nonprofit Award

5stars-testimonials

Luis Scott, Jr.

- Bader Scott Foundation -

Client Raised $748k

youtube-video-thumbnail

Our Client’s Nonprofit Raised $748k in 12 months & Received Our "Six Figure Nonprofit Award

5stars-testimonials

Flor Martinez

- Celebration Nation Inc. -

youtube-video-thumbnail

Ready to Start Your Nonprofit? Already Have a Nonprofit But Need Help Growing? Call us today at 407-674-2657

5stars-testimonials

Lashea C. Reeves

- 8 Cents in a Jar -

youtube-video-thumbnail

Ready to Start Your Nonprofit? Already Have a Nonprofit But Need Help Growing? Call us today at 407-674-2657

5stars-testimonials

Zecharia Cartledge

- Running for Heroes -

youtube-video-thumbnail

Ready to Start Your Nonprofit? Already Have a Nonprofit But Need Help Growing? Call us today at 407-674-2657

5stars-testimonials

Dr. Rhonika Thomas

- National Nonprofit Minority Association -

Envisioning a Brighter Future for Alabama

Joining Alabama's network of changemakers means committing to a shared goal of community improvement and innovation. By aligning with like-minded partners and tapping into available resources, your nonprofit can play a pivotal role in shaping a prosperous future for all Alabamians.

Alabama is home to numerous nonprofits that have already made significant strides in improving lives and strengthening communities. Organizations like the Alabama Association of Nonprofits, the Community Foundation of Greater Birmingham, and Alabama Possible are just a few examples of entities making a lasting impact through innovative solutions and dedicated service.

shutterstock_1845553696
imge-attorney-defensivetrademark-2023

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.
shutterstock_2129385929

Understanding State Tax Exemptions and Compliance in Alabama

Once your nonprofit has received its 501(c)(3) status from the IRS, you can apply for exemptions from state taxes such as income and sales taxes. Additionally, it's crucial to register with the Alabama Attorney General's Office before you start fundraising activities within the state.

The journey to establish and maintain a 501(c)(3) nonprofit in Alabama can be complex. Partnering with skilled professionals like attorneys, accountants, and nonprofit consultants can provide crucial guidance. These experts help ensure legal compliance, risk mitigation, and sustainable growth, offering support from the initial setup to ongoing operations.

“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

ima1-clients-helped-everylite
ima2-clients-helped-queen-tax-deeds
ima3-clients-helped-revolution-leadership
ima6-clients-helped-women-on-the-rise-orlando
ima4-clients-helped-beat-the-battle
ima5-clients-helped-walt-disney
ima7-clients-helped-eight-cents

Schedule Your FREE 30-Minute
Nonprofit Consultation (Value: $450)

We’ve Helped Past Clients Start and Grow Nonprofits That Impact the World.

ima1-Past-501c3s-for-Clients-Approved-startyourtaxexemptnonprofit

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

ima2-Achieve-501c3-Nonprofit-Status-startyourtaxexemptnonprofit

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

ima3-Stop-Stealing-Federal-Trademark-nonprofit-startyourtaxexemptnonprofit

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

ima4-Get-Paid-Salary-startyourtaxexemptnonprofit

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

ima5-Get-Fundraising-Plan-Works-startyourtaxexemptnonprofit

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

ima6-Avoid-Being-Kicked-Off-Board-startyourtaxexemptnonprofit

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

ima7-Avoid-Costly-Mistakes-startyourtaxexemptnonprofit

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

ima8-Get-Help-Grant-Writing-startyourtaxexemptnonprofit

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

ima9-Get-One-One-Guidance-startyourtaxexemptnonprofit

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 One-on-One Guidance From a Nonprofit Attorney