How to Start a Nonprofit in Massachusetts

Step 1: Name Your Massachusetts Nonprofit

The first step to getting your organization off the ground is choosing a name for it. You should choose a name that adheres to the state’s guidelines, and that is easy to remember and search for. You’ll want people to be able to find you quickly and easily, so they can soon become members and donors. 

For more details on all the facts about naming your nonprofit, visit: How to Name a Nonprofit in Massachusetts

1. Follow the Massachusetts naming guidelines:

• Unless you’re a church or other kind of religious organization, make sure you include “Corp.” or “Corporation” somewhere in your business’s name.
• Your name must be distinguishable from all other entity names in Massachusetts. This included any reserved business names.

For more official guidelines, visit this page to see how to name a nonprofit in Massachusetts.

2. Is your business name available for use in Massachusetts? Next, perform a name search on the State of Massachusetts website to be sure no other business is using the name you want. If it is, you need to pick something else.

3. Is the URL available for your chosen business name? Most businesses have their own web domain. Check to see if the name you want is available for purchase. If not, you may want to choose something else. Buy the URL now, even if you don’t want a website right away. That way, the URL will be available only to you and not to others.

A professional service can help you finish the Massachusetts nonprofit formation process once you choose a name and reserve your URL. We suggest working with a company that has a long history of successful interactions with their clients, such as:

Northwest ($29 + State Fees)

Step 2: Choose a Resident Agent in Massachusetts

Any nonprofit in Massachusetts is required to nominate a resident agent for the organization, known as a registered agent in most other states.

What is a resident agent? Put simply, it is a corporation or individual resident of the state that can receive legal documents on behalf of your nonprofit. Many businesses choose to use a registered agent service since this makes it easy to track documents and keep them secure. 

You can choose to be your own resident agent, or you can nominate another person who works with your nonprofit. Just remember, whoever you choose does have to be the main point of contact with the state and should be prepared to receive legal documents for your nonprofit at all times. 

For more details, read our How to Choose a Registered Agent for Your Massachusetts Nonprofit guide.

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 Massachusetts nonprofit corporation must include:

1. At least 3 directors not related to each other
2. A president (who must also be a director) 
3. A treasurer
4. A clerk

To learn more about electing a Massachusetts nonprofit board of directors, read our full guide.

Step 4: Adopt Bylaws & Conflict of Interest Policy

To become eligible for 501c3 status, your nonprofit needs bylaws and a conflict of interest policy. These must be adopted during your first organizational meeting. 

What are bylaws? Bylaws go over your nonprofit’s operating procedures.

What’s a conflict of interest policy? A conflict of interest policy is put in place to prevent (or penalize) those working with your nonprofit from making self-serving decisions rather than decisions that are in the best interests of the nonprofit. All people working with the nonprofit should sign this document.

NOTE: Your initial organizational meeting is where you’ll adopt these two documents and appoint directors and officers. Don’t forget to have them agree to the documents to protect your nonprofit.

Step 5: File the Massachusetts Articles of Organization

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

To ensure that your nonprofit is eligible to apply for 501c3 status, in the Articles of Organization 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 EIN is an Employer Identification Number, occasionally called a Federal Tax Identification Number (FTIN). The federal government assigns these numbers to businesses (such as nonprofits) to differentiate them from one another and other individuals.

Why is an EIN needed for your nonprofit? Having an EIN is necessary to separate your business from you as the owner. You’ll need an EIN to:

• Pay taxes to the local, state, or federal government as your business
• Hire employees to work with the business
• Open up a bank account for your business

Our EIN Lookup guide has more details for you to review. Remember, an EIN is free, and you just have to apply for one from the IRS by mail or online after completing your nonprofit’s formation process with the Commonwealth of Massachusetts. 

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 Organization 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.