Who is this article for?
Anyone wanting to start a nonprofit or charity in the state of Washington.
Nonprofits operating in Washington, D.C., are governed under the D.C. Nonprofit Corporation Act of 5. Here are the steps to starting a nonprofit or charity in this state.
Washington D.C. Nonprofit and Charity Overview
- Incorporate with the D.C. Department of Consumer and Regulatory Affairs (DCRA)
- Apply for tax-exempt status with the IRS
- Apply for tax exemptions with the D.C. Office of Tax and Revenue
- Apply for a Basic Business license for charitable solicitations with the DCRA
Items Needed During This Process
D.C. Department of Consumer and Regulatory Affairs (DCRA)
All nonprofit organizations must first incorporate in D.C. with the DCRA. According to the law, you only need one incorporator to proceed, but a minimum of 3 individuals to serve as directors.
Required Documents for Filing:
- Form DNP-1
- Articles of incorporation. These should have the following information:
- Statement that the corporation has been formed under the D.C. Nonprofit Corporation Act, Title 29, Chapter 4
- Name and street address of each incorporator
- Each incorporator must sign and date the articles
- You can also include the following information in your articles of incorporation:
- Names of initial members of the board of directors (Minimum of 3 board members)
- Names of initial members, if any
- Provisions required for the corporation to meet the requirements of 501(c)(3)
- Provision for the indemnification of directors
- Any provision related to:
- Purposes of why the corporation was formed
- Management of affairs of the corporation
- Powers of the corporation and board of directors
- Rights and limitations of members
Steps for incorporating:
- File two original copies of the required documents, signed by incorporators
- Pay the filing fee of:
- $80 - 15 days processing time
- $100 - Same-day expedited service
- Mail all forms and required payment to:
Department of Consumer and Regulatory Affairs
Corporations Division
PO Box 92300
Washington, DC 20090
Phone: (202) 442-4400
Bylaws are not filed with DCRA, but it’s best to have them drafted. You can find a sample of bylaws here.
D.C. Office of Tax and Revenue
Under certain circumstances, organizations can request exemption from local income and franchise taxes, sales and use taxes, and personal property taxes from the state. It’s best to file promptly after receiving the IRS determination of exemption, as the D.C. exemption will be retroactive to the IRS’ effective date.
Required Documents for Filing:
- Form FR-164
- Form FR-500 (filed online)
- Determination or ruling letter from IRS
- Certificate of Incorporation from the D.C. Department of Consumer and Regulatory Affairs, Corporations Division
- If not incorporated in DC, provide a photocopy of the Certificate of Authority
- Copy of a lease, District of Columbia Occupancy Permit
Mail/fax the requirements to:
Government of the District of Columbia
Office of Tax and Revenue
P.O. Box 556
Washington, D.C. 220044-0556
Fax # (202) 442-6882
Charitable Solicitations (Fundraising) Registration
D.C. requires nonprofits to file for a Basic Business License with the DCRA for charitable solicitations. Here are the steps:
- Request for a Clean Hands Certificate online
- Request for the following from the Office of the Zoning Administrator:
- Certificate of Occupancy, if you’re operating out of an office location. File and email to doapp@dc.gov.
- Home Occupation Permit, if you’re conducting business out of a home.
- Apply for a Basic Business License online.
Requirements:- Certificate of Occupancy or Home Occupation Permit
- Charitable Services Business Worksheet
- Corporate Registration
- IRS Determination Letter
- Tax Registration
- Pay the corresponding fees:
- Charitable Exempt - No Fee
- Charitable Solicitation - $412.50