Starting a Nonprofit Corporation in Kansas 2024: Your Step-by-Step Guide

How to Start a Nonprofit Corporation in Kansas

Are you passionate about making a difference in your community? Starting a nonprofit organization in Kansas can be a fantastic way to create lasting change and positively impact the lives of those around you. However, navigating the legal and regulatory requirements of starting a Nonprofit Corporation can be daunting, especially if you are new to the process.

This guide aims to simplify the process of forming a Nonprofit Corporation in Kansas by providing a step-by-step approach to ensure that your organization is set up for success from the start. At LLCBase, we understand that forming a nonprofit corporation can be an overwhelming experience, so we are here to help you achieve your goals every step of the way.

What is a Nonprofit Corporation

A Nonprofit Corporation is a legal entity organized and operated for purposes other than profit-making. The primary goal of a Nonprofit Corporation is to serve the public interest, promote a specific social cause, or support a charitable, religious, educational, scientific, or artistic mission. Unlike traditional for-profit corporations in Kansas, Nonprofit Corporations do not distribute profits to shareholders or owners. Instead, surplus funds are reinvested into the organization to further its mission and objectives. When starting a nonprofit corporation, consult the best formation service in Kansas to assist you.

Nonprofit Corporations are granted special tax-exempt status under Section 501(c) of the Internal Revenue Code in the United States, which exempts them from federal income taxes. Nonprofit Corporations may also be eligible for state and local tax exemptions. This tax-exempt status allows Nonprofits to receive tax-deductible donations and grants, making it easier for them to raise funds for their cause.

Some common types of Nonprofit Corporations include charities, foundations, social welfare organizations, trade associations, and religious institutions. These organizations play a vital role in society by addressing various social, environmental, and cultural issues, providing essential services, and enhancing the overall quality of life for communities.

Recommended: Want to create a lasting impact in Kansas – start your nonprofit corporation with a trusted expert. Begin your mission today! We recommend –

Our #1 Pick: LegalZoom – ($0 + State Fees) Online Corporation Setup

Steps to Form a Kansas Nonprofit Corporation

Below is an extensive overview of the steps to initiate a nonprofit corporation in Kansas:

Step 1. Choose a Name

The first step in starting a Nonprofit Corporation in Kansas is choosing an appropriate name for your organization. The name must be unique and distinguishable from other businesses registered in the state. You can conduct a preliminary name search on the Kansas Secretary of State‘s website to check the availability of your desired name. Additionally, the name should not include any prohibited words or phrases, such as “bank” or “insurance.”

Recommended: Secure your perfect nonprofit corporation name with the help of the best formation expert. Effortlessly explore name options, making the reservation process a breeze! We recommend –

Our #1 Pick: LegalZoom – ($0 + State Fees) Online Corporation Setup

Step 2. Appoint Kansas Registered Agent

When forming a Nonprofit Corporation in Kansas, you must appoint Registered Agent in Kansas. The Registered Agent is responsible for receiving legal documents and correspondence on behalf of your organization. They must have a physical address in Kansas and be available during regular business hours. You can choose an individual or a professional Registered Agent service to serve in this role.

We have compiled a list of the best registered agent services in Kansas for your consideration. These services have a reputation for their trustworthiness and professionalism. With assistance from these experienced registered agents, your business in Kansas can be handled with the utmost confidence and efficiency.

LLC Services

Rating & Pricing

Top Features

Learn More

#1 Editor's Choice

$299 Per Year

  • Free LLC Formation

  • RA service in all states

  • Legal consultation

$125 Per Year

  • Flat price for RA service

  • LLC formation package

  • Fast service

Step 3. Appoint Board Members and Officers

In Kansas, a Nonprofit Corporation must have at least three board members responsible for overseeing the management and operations of the organization. The board must also elect officers, such as a president, secretary, and treasurer. It is important to choose individuals who are passionate about your organization’s mission and have the skills to carry out their duties effectively.

Step 4. File Articles of Incorporation

To officially form a Nonprofit Corporation in Kansas, you must file the Articles of Incorporation with the Kansas Secretary of State. The filing fee is $90 for filing online and by mail. Your Articles of Incorporation must include the following required provisions:

  • Name of the Nonprofit Corporation
  • Purpose of the organization
  • A statement that the organization is a Nonprofit Public Benefit Corporation
  • Name and address of the Registered Agent
  • Statement of how the organization’s assets will be distributed upon dissolution

Optional provisions that can be included in the Articles of Incorporation are specific limitations or restrictions on the organization’s activities, indemnification of directors and officers, and any additional information that may be relevant to the organization.

Step 5. Apply for EIN

After filing your Articles of Incorporation, you must obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). This nine-digit number is used to identify your organization for tax purposes and is required when applying for tax-exempt status or opening a bank account. You can apply for an EIN online, by fax, or by mail.

Recommended: Effortlessly secure your EIN with a trustworthy formation service. Boost your online business launch with unwavering confidence today! We recommend –

Our #1 Pick: LegalZoom – ($0 + State Fees) Online Corporation Setup

Step 6. Draft Bylaws and Policy

Bylaws are the internal rules and procedures that govern the operation of your Nonprofit Corporation. They should outline the roles and responsibilities of board members and officers and the process for holding meetings and making decisions. Additionally, your organization should adopt a conflict of interest policy to properly address potential conflicts involving board members or officers.

Step 7. Hold an Organizational Meeting

Once you have drafted your bylaws and conflict of interest policy, you should hold an organizational meeting with your board members and officers. During this meeting, you will adopt the bylaws and conflict of interest policy, elect officers, and make any other initial decisions necessary for the operation of your Nonprofit Corporation.

Step 8. Obtain Licenses and Permits

Depending on the nature of your organization, you may be required to obtain business licenses and permits in Kansas to operate legally. This can include local business licenses, zoning permits, and any specific licenses required for your organization’s activities. Consult your Kansas Secretary of State for more information.

Looking for reliable expertise on business licenses, permits, and compliance? Why not consult the best business attorneys in Kansas who know the legal landscape of your unique industry inside and out? With their friendly assistance, you’ll tackle your business requirements confidently and hassle-free!

Recommended: Sail through the business licensing process with a reliable formation service. Confidently launch your online venture today! We recommend –

Our #1 Pick: LegalZoom – ($0 + State Fees) Online Corporation Setup

Step 9. Register for Kansas State Taxation

While many Nonprofit Corporations are exempt from federal income tax, they may still be subject to Kansas state taxes. You must register with the Kansas Department of Revenue and may be required to file annual tax returns.

Step 10. Register for Charitable Solicitation

If your Nonprofit Corporation plans to solicit donations from the public, you must register with the Kansas Attorney General’s Office. This registration is required before legally soliciting charitable contributions in Kansas.

Fee Schedule for Starting a Kansas Nonprofit Corporation

Here are the fees associated when starting a corporation in Kansas:

  • Articles of Incorporation Filing Fee: $90 for filing online and by mail
  • Employer Identification Number (EIN) Application: Free
  • Form 1023 (Application for Recognition of Exemption) User Fee: $600 (for most organizations)
  • Form 1023-EZ (Streamlined Application for Recognition of Exemption) User Fee: $275
  • Statement of Information Filing Fee: $40 if domestic, $115 if foreign

Please note that these fees are subject to change, and additional fees may be applicable depending on the specific requirements of your nonprofit organization, such as obtaining licenses and permits. Always consult the respective agency websites and experts for the most up-to-date information.

Apply for 501(c)(3) Tax-Exempt Status

Once you have successfully formed your Kansas Nonprofit Corporation, the next crucial step is to apply for tax-exempt status under Section 501(c)(3) of the Internal Revenue Code. This status allows your organization to be exempt from federal income taxes and is essential for receiving tax-deductible donations and grants.

  1. Prepare IRS Form 1023 or 1023-EZ: The first step in applying for 501(c)(3) tax-exempt status is selecting the correct application form. Most organizations will use IRS Form 1023, the Application for Recognition of Exemption. However, smaller organizations may be eligible to use the shorter Form 1023-EZ. This streamlined application is only available to organizations with annual gross receipts of $50,000 or less and total assets of $250,000 or less. Review the eligibility requirements on the IRS website to determine which form is most appropriate for your Nonprofit Corporation in Kansas.
  2. Submit the Application: After completing the appropriate application form, submit it with the required user fee to the IRS. The fee will depend on your organization’s size and financial status, so consult the IRS website for the most up-to-date information.Keep in mind that the IRS review process can take several months. During this time, maintain good records and continue to operate your Kansas Nonprofit Corporation in compliance with state and federal regulations. If your application is approved, you will receive a Determination Letter from the IRS confirming your tax-exempt status.
Kansas State Tax Exemption

In addition to federal tax exemption, your Kansas Nonprofit Corporation may also qualify for state tax exemption. To apply, submit Form Form ST-28, Exemption Application, to the Kansas Department of Revenue and the required supporting documentation. If approved, your organization will be exempt from Kansas state income tax and may qualify for exemption from other state taxes.

Ongoing Compliance

After successfully forming your Kansas Nonprofit Corporation and obtaining tax-exempt status, it’s essential to maintain compliance with state and federal regulations. This includes filing annual reports, paying state and federal taxes, and maintaining good records.

  • File Annual Reports: Your Kansas Nonprofit Corporation must file an annual report with the Kansas Secretary of State each year. This report, known as the Statement of Information, is due yearly within a specific time frame based on your organization’s registration date. Failure to file the report on time may result in penalties and suspending your organization’s corporate status.
  • State Taxes: Even with tax-exempt status, your Kansas Nonprofit Corporation may still be responsible for certain state taxes, such as sales tax permits on goods and services sold by your organization. Consult the Kansas Department of Revenue’s website for more information on state tax requirements.
  • Federal Taxes: While your organization may be exempt from federal income tax, you must still file an annual information return with the IRS. This is typically Form 990, 990-EZ, or 990-N, depending on your organization’s size and financial activity. Consult the IRS website for more information on which form your Kansas Nonprofit Corporation should file.
  • Maintain Good Records: Keeping accurate and up-to-date records is essential for maintaining your Nonprofit Corporation’s compliance with state and federal regulations. This includes financial records, meeting minutes, and other organizational documents. Strong recordkeeping practices will help you stay compliant and provide a solid foundation for your organization’s growth and success.

FAQs

What is the first step to start a nonprofit corporation in Kansas?
The first step is to choose a name for the corporation that is compliant with Kansas law.
How long does it take to start a nonprofit corporation in Kansas?
The processing time for a nonprofit corporation in Kansas can take up to a few weeks.
Is there a filing fee to start a nonprofit corporation in Kansas?
Yes, the filing fee for a nonprofit corporation in Kansas is $40.
Does the state of Kansas require a registered agent for a nonprofit corporation?
Yes, a registered agent is required for a nonprofit corporation in Kansas.
Can a nonprofit corporation in Kansas be started by only one person?
Yes, a nonprofit corporation in Kansas can be started by only one person.
Is it necessary to have a physical office address in Kansas to start a nonprofit corporation?
A physical office address is not required in Kansas to start a nonprofit corporation.
How many directors are required to start a nonprofit corporation in Kansas?
A minimum of three directors are required to start a nonprofit corporation in Kansas.
Is there a minimum age requirement for directors in a nonprofit corporation in Kansas?
No, there is no minimum age requirement for directors in a nonprofit corporation in Kansas.
What is the purpose of the Articles of Incorporation in Kansas for a nonprofit corporation?
The Articles of Incorporation declares the formation of the nonprofit corporation in Kansas.
Is there a specific format to follow for writing the Bylaws of a nonprofit corporation in Kansas?
Kansas law does not provide a specific format for writing the Bylaws of a nonprofit corporation.
Can a nonprofit corporation in Kansas have a for-profit subsidiary?
Yes, a nonprofit corporation in Kansas can have a for-profit subsidiary.
Does Kansas require nonprofit corporations to file an annual report?
Yes, nonprofit corporations in Kansas are required to file an annual report with the Secretary of State.
Can a nonprofit corporation in Kansas pay salaries to its employees?
Yes, a nonprofit corporation in Kansas can pay salaries to its employees.
How can I obtain tax-exempt status for my nonprofit corporation in Kansas?
You can apply for tax-exempt status with the IRS by filing Form 1023.
What type of tax forms does a nonprofit corporation in Kansas need to file?
A nonprofit corporation may need to file Form 990 or 990-EZ with the IRS.
Does a nonprofit corporation in Kansas have to pay sales tax?
Nonprofit corporations in Kansas are exempt from paying sales tax on most purchases.
Can a nonprofit corporation in Kansas sell goods or services to generate income?
Yes, a nonprofit corporation in Kansas can sell goods or services to generate income, as long as the purpose is related to the nonprofit’s mission.
Is an audit required for the financial records of a nonprofit corporation in Kansas?
An audit is not required for a nonprofit corporation in Kansas, but it is a good idea for transparency and accuracy of financial records.
Does Kansas statute dictate specific reserve-fund requirements?
No, Kansas law does not dictate specific reserve-fund requirements for nonprofit corporations.
Can a nonprofit corporation in Kansas receive donations from out-of-state donors?
Yes, a nonprofit corporation in Kansas can receive donations from out-of-state donors.
Can a nonprofit corporation in Kansas endorse political candidates or lobby for specific policies?
No, political endorsement or lobbying is prohibited for nonprofit corporations in Kansas.
Does Kansas have any specific requirements for board member and employee liability insurance?
Kansas law does not require nonprofit corporations to purchase liability insurance, but it is a good idea for protection.
Can a Kansas nonprofit corporation receive grants and loans?
Yes, a nonprofit corporation in Kansas can apply for grants and loans from various sources.
Is there a limit to how many nonprofits can be created in Kansas?
There is no limit to the number of nonprofit corporations that can be created in Kansas.
Can a nonprofit corporation in Kansas restrict the use of its funds for specific purposes?
Yes, a nonprofit corporation in Kansas can restrict the use of funds for specific purposes.
Can a nonprofit corporation in Kansas be dissolved voluntarily?
Yes, a nonprofit corporation in Kansas can be voluntarily dissolved by a two-thirds vote of the directors.
What is the difference between a 501(c)(3) and a 501(c)(4) nonprofit corporation in Kansas?
A 501(c)(3) nonprofit corporation is tax-exempt and is focused on public charity, whereas a 501(c)(4) is tax-exempt but is focused on social welfare.
Can a non-US citizen serve as a director of a nonprofit corporation in Kansas?
Yes, a non-US citizen can serve as a director of a nonprofit corporation in Kansas.
Can a Kansas nonprofit corporation participate in commercial activities?
Yes, a nonprofit corporation in Kansas can participate in commercial activities that are related to their nonprofit mission.
What is a nonprofit corporation in Kansas?
A nonprofit corporation in Kansas is an organization established for charitable, educational, religious, scientific, or literary purposes, which does not operate to generate income.
What steps must be followed to incorporate a nonprofit in Kansas?
Steps to incorporate a nonprofit in Kansas include selecting a name, drafting articles of incorporation, filing the articles with the Kansas Secretary of State, and obtaining tax-exempt status from both the state and federal government.
How do I choose a name for my Kansas nonprofit corporation?
To choose a name for your Kansas nonprofit corporation, you must ensure it is distinguishable from any other organization registered with the Secretary of State, contains no prohibited words, and accurately represents your organization’s purpose.
How do I draft articles of incorporation for a Kansas nonprofit?
To draft articles of incorporation for a Kansas nonprofit, you must include key information such as your organization’s name, purpose, registered agent, and initial board of directors. You may find templates and resources on the Secretary of State’s website.
How do I file my articles of incorporation in Kansas?
To file articles of incorporation in Kansas, you must submit the documents and a filing fee to the Secretary of State’s office either through mail or online.
How much does it cost to file articles of incorporation in Kansas?
The filing fee to file articles of incorporation in Kansas is typically $20 for online submissions and $25 for mailed-in submissions.
Can I use a registered agent service to represent my nonprofit corporation in Kansas?
Yes, you may use a registered agent service to represent your nonprofit corporation in Kansas as long as the service is licensed to do business in the state.
Do I need any other licenses or permits to operate a nonprofit corporation in Kansas?
Depending on your organization’s activities, you may need to obtain additional licenses or permits from federal, state, or local authorities. Some common permits include fundraising permits, charitable organization licenses, and state tax exemptions.
How do I obtain sales tax exemption in Kansas?
To obtain sales tax exemption in Kansas, you must make a separate application to the Kansas Department of Revenue after receiving tax exemption from the Internal Revenue Service.
Can a nonprofit corporation in Kansas make a profit?
Yes, non-profit corporations in Kansas can generate profits as long as the profits are used purposefully for furthering the organization’s mission.
Do nonprofit corporations in Kansas pay taxes?
Nonprofit corporations in Kansas may be required to pay federal and state taxes on income unrelated to their primary mission and activities.
How do I obtain 501(c)(3) status for my Kansas nonprofit corporation?
To obtain 501(c)(3) status for a Kansas nonprofit corporation, you must file a Form 1023 with the Internal Revenue Service along with your organization’s articles of incorporation, bylaws, and other relevant documents.
What benefits does having 501(c)(3) status in Kansas provide for a nonprofit?
Some benefits of obtaining 501(c)(3) status in Kansas include exemption from federal income taxes, eligibility for private and public grants, and reduced postal rates.
How long does it take to obtain 501(c)(3) status for a Kansas nonprofit?
Typically, it takes around six months to one year to obtain 501(c)(3) status for a Kansas nonprofit organization.
Are nonprofit corporations in Kansas required to have bylaws?
Yes, nonprofit corporations in Kansas must have bylaws which outline governing procedures, define roles and responsibilities of directors and officers, and address other important organizational matters.
Can I amend the bylaws of my Kansas nonprofit corporation later on?
Yes, you may amend the bylaws for your Kansas nonprofit corporation anytime, provided you follow the regulatory procedures outlined in the bylaws.
Are directors of Kansas nonprofit corporations compensated?
Directors of Kansas nonprofit corporations may be compensated for their services, as long as the compensation is reasonable and proportionate to their services.
Can members of the public attend meetings of Kansas nonprofit corporations?
Meetings of Kansas nonprofit corporations do not necessarily have to be open to the public, but members of the corporation are typically entitled to attend semi-annual member meetings.
How do Kansas nonprofit corporations keep track of their finances and activities?
Nonprofit corporations in Kansas must maintain accurate records of their finances and activities including annual filings to the Secretary of State and Internal Revenue Service, filings with charitable registries and regulatory bodies, and maintaining their status as a nonprofit.
Can a Kansas nonprofit corporation offer members salaries or free services related to their regular activities?
No, Kansas nonprofit corporations cannot offer members salaries or provide free services or gifts to them related to their regular activities, as this raises remaining nonprofit status questions.
What happens if a Kansas nonprofit corporation fails to meet filing requirements?
A Kansas nonprofit corporation may be subject to penalties, fines, or losing tax-exempt status if they fail to meet filing requirements or finical audit submissions within a stipulated timeframe.
What documents are required to register for nonprofit fundraising in Kansas?
There are no documentation filings required to register for nonprofit fundraising in Kansas, but you need to seek registration exemptions from states’ authority.
How long does it take to seek registration exemptions in Kansas?
It usually takes around one to two weeks to seek registration exemptions in Kansas for first time individuals.
Can I register to fundraise out-of-state with my Kansas nonprofit corporation?
Yes, you might need to follow out of state fundraising requirements by preparing early and individual instance documentation to avoid conflict of interest.
What is charitable gaming in Kansas?
Charitable gaming is a process of working with casinos for conducting slot machines, bingo games, progressive raffle generators, pull-tabs in Kansas.
How do Kansas nonprofit corporations register for charitable gaming?
Nonprofit corporations in Kansas seeking charitable gaming may need to work with the Kansas Department of Revenue’s Special Tax Division to secure a charity raffle or gambling license.
How long does it take to receive a charity registration certificate by the Kansas Department of Revenue?
It might take up nearly six months to receive a charity registration certificate by the Kansas Department of Revenue, but it varies by license or permit sought.

Also Read

Why You Should Start Kansas Nonprofit

One of the main reasons why you should consider starting a Kansas nonprofit is the ability to address pressing social issues in your local community. With rising concerns about homelessness, poverty, education, healthcare, and the environment, there is an ever-growing need for individuals and organizations to step up and take action. By starting a nonprofit, you can play a crucial role in addressing these challenges and making a tangible difference in the lives of those who need help the most.

Furthermore, starting a nonprofit can provide you with a platform to raise awareness and mobilize resources for a cause that you are truly passionate about. Whether you are advocating for animal rights, environmental conservation, or social justice, a nonprofit organization can serve as a valuable tool to amplify your voice and reach a wider audience. By creating a platform for dialogue and action, you can inspire others to join your cause and work towards a more just and equitable society.

Additionally, starting a nonprofit can also provide you with the opportunity to build valuable skills and experience that can benefit you both personally and professionally. From fundraising and budgeting to project management and community outreach, running a nonprofit can help you develop a wide range of transferable skills that can enhance your resume and open up new opportunities for career growth. Whether you are a recent graduate looking to gain hands-on experience or a seasoned professional seeking to give back to the community, starting a nonprofit can provide you with a valuable opportunity to expand your skill set and make a positive impact in the process.

Finally, starting a nonprofit can also be a deeply fulfilling and rewarding experience on a personal level. By dedicating your time and energy to a cause that you care about, you can experience a sense of purpose and fulfillment that comes from knowing that you are making a real difference in the world. Whether you are volunteering at a local shelter, organizing a fundraising event, or simply spreading awareness about an important issue, the impact of your efforts can be profound and long-lasting. By investing in the well-being of others, you can also cultivate a greater sense of empathy, compassion, and gratitude that can enrich your own life and help you forge deeper connections with those around you.

In conclusion, starting a nonprofit in Kansas can be a transformative experience that can bring about positive change in your community and beyond. Whether you are driven by a passion for social justice, environmental sustainability, or simply helping those in need, starting a nonprofit can provide you with a unique opportunity to make a difference, develop valuable skills, and experience personal fulfillment in the process. If you are looking for a meaningful way to give back and create a better world for future generations, then starting a nonprofit may be the right choice for you.

Conclusion

Forming a Kansas Nonprofit Corporation and maintaining compliance with state and federal regulations are crucial to creating a successful organization. By ensuring your organization remains compliant, you can focus on fulfilling your mission and serving your community without worrying about legal or financial setbacks.

While this guide provides an overview of forming a Nonprofit Corporation in Kansas, it’s important to remember that each organization’s situation is unique. The process of starting a for-profit corporation is different from a nonprofit corporation. Seek the advice of experienced professionals, such as attorneys, accountants, or nonprofit consultants, to ensure your organization is set up for success from the start. Check LLCBase for more guides and resources for starting your business.

Leave a Comment