Many New Nonprofits Miss This Step Many founders launch their nonprofit with passion but skip a critical step filing for 501(c)(3) tax-exempt status. Without it: ✅ You may still owe taxes ✅ Donors and sponsors won’t fund you ✅ You miss out on nonprofit grants free money organizations qualify for but never apply because they aren’t properly registered If you want your nonprofit to grow and access real funding, secure your 501(c)(3) early.

The Biggest Mistake New Nonprofits Make Many New Nonprofits Miss This Step A lot of new founders start their nonprofit with genuine passion, but they overlook the core documents that give their organization stability, structure, and credibility. I see it often people form the nonprofit, but they don’t take time to put their bylaws, business plan, conflict of interest policy, board resolutions, and organizational meeting minutes in place. Bylaws act as your organization’s rulebook and help everyone understand how decisions are made. Your business plan shows that you have direction and a realistic strategy for growth. A conflict of interest policy protects your nonprofit and proves you’re operating with integrity. Board resolutions and meeting minutes show the IRS and funders that your board is active and your nonprofit is properly organized. When these documents are missing, the board becomes confused, the IRS can delay or deny your 501c3 approval, and funders often won’t take the organization seriously. It also increases the risk of compliance issues later on. If you want your nonprofit to grow, secure funding, and stay compliant, getting these foundational documents in place early makes everything smoother in the long run.