How to Start a Nonprofit in Indiana

Step 1: Name Your Indiana Nonprofit

You’ll need to choose a name for your organization, which must both follow the rules set by the State of Indiana and be easy to find. Potential members and donors should be able to search for it easily.

To learn more about the kinds of names you can have and ways to start brainstorming, read through our How to Name a Nonprofit in Indiana guide.

1. Follow the naming guidelines:

• Your organization must:
• Have a name with an organizational designation like one of the following: “Inc.,” “Ltd.,” “Incorporated,” or “Company”
• Have a name that is distinguishable enough not to be confused with other organizations in the state

The Indiana General Assembly sets the official guidelines for naming your organization — read through them to make sure your name is acceptable.

2. Can you use the name in Indiana? Perform a name search on the State of Indiana website to see if it’s already taken.

3. Can you obtain the URL? To build your own website, you’ll need a personalized web domain. Even if you don't want to make a website, it’s a good idea to get the URL now to prevent others from using it. 

After you get your name and URL, move on to finding a business that can help with the Indiana nonprofit formation process. It is our preference to choose a business with a positive reputation, such as:

Northwest ($29 + State Fees)

Step 2: Choose a Registered Agent in Indiana

As a nonprofit, you must nominate an Indiana registered agent to help your organization.

What’s a registered agent? A registered agent is a person or business that will receive legal documents on your business’s behalf. Your registered agent is your main point of contact with the State of Indiana.

Who can be a registered agent? Residents or businesses within Indiana can be registered agents. Many nonprofits choose to work with a registered agent service. You could also choose to nominate someone from your business or take the role yourself. 

Here is more information in our guide: How to Choose a Registered Agent for your Indiana Nonprofit.

Step 3: Select your Directors & Officers

The directors of an organization come together to form a board of directors. This board of directors is responsible for overseeing the operations of the nonprofit. 

The president, secretary, and other members of the nonprofit who have individual responsibilities and authorities are known as officers. 

To be eligible for 501c3 status, the organizational structure of your Indiana nonprofit corporation must include:

1. At least 3 directors not related to each other
2. A president
3. A secretary
4. A treasurer

To learn more about electing an Indiana nonprofit board of directors, read our full guide.

Step 4: Adopt Bylaws & Conflict of Interest Policy

Before your nonprofit can become eligible for the 501c3 status, you will have to show that you have:

1. Bylaws 
2. A conflict of interest policy

What are bylaws? Bylaws are rules that describe how your nonprofit will be operated. 

What’s a conflict of interest policy? Officers and your board of directors need to sign a conflict of interest policy to agree that they will not do anything that could harm or not be in the best interests of your nonprofit.

TIP: Remember that you have to establish your bylaws and conflict of interest policy, as well as your initial board of directors and officers, during your first meeting.

Step 5: File the Indiana Articles of Incorporation

To register your nonprofit, you will need to file the Articles of Incorporation with the State of Indiana.

To ensure that your nonprofit is eligible to apply for 501c3, in the Articles of Incorporation you must explicitly state the following:

1. Purpose:

In order to qualify for 501c3 status, the organization’s purpose must explicitly be limited to one or more of the following:

Charitable, Religious, Scientific, Educational, Literary, Fostering national/international amateur sports competition, Preventing cruelty to animals/children, Testing for public safety

2. Dissolution:

You must explicitly state what the assets of the organization will be used for, and what will happen to the assets if the organization is dissolved. 

To be eligible for 501c3 status, the assets of your organization must only ever be used for purposes approved under section 501c3. 

Section 5 of this sample IRS document provides an example of these provisions required for 501c3 eligibility. 

Step 6: Get an EIN

What is an EIN? An Employer Identification Number (EIN) or Federal Tax Identification Number (FTIN) tells the federal government that your business is an individual entity. Your business’s EIN is much like a Social Security number.

Why do I need an EIN? An EIN is required to do any of the following things on behalf of your business:

• Opening a bank account
• Paying taxes
• Hiring people to work for you (employees)

How can you get an EIN for your nonprofit? To get an EIN, you’ll need to apply for one (for free) from the IRS after you form your company. You can apply by mail or online. Check out our EIN Lookup guide for more information on the next steps.

Step 7: Apply for 501c3 Status

Before a nonprofit can apply for 501c3 status it must, 

1. Elect at least 3 directors not related to each other
2. File the Articles of Incorporation with the required provisions (As covered in Step 5)
3. Adopt the bylaws and conflict of interest policy
4. Have an EIN number

Once these four conditions have been met your nonprofit can apply for 501c3 tax-exempt status by filing Form-1023 online. 

If your application is approved, the IRS will send you a determination letter stating that your organization is exempt from federal taxes under section 501c3.