Introduction

Launching a nonprofit in Virginia turns your vision into action. Whether your mission is local or statewide, forming your organization the right way helps you start strong and meet compliance every step of the way.

A nonprofit organization serves a charitable or public purpose rather than earning profits for owners or shareholders. Understanding Virginia's rules, such as annual filings, charitable registration, and recordkeeping, helps you maintain good standing and transparency.

Here is what every founder should know about starting a nonprofit in Virginia. These eight steps will guide you from an idea that matters to a mission that lasts.

Step 1: Define Your Purpose and Mission

Every strong nonprofit begins with a clear purpose. Think about the need you want to meet, who you plan to serve, and how your organization will make a difference.

Your mission statement is the foundation of your nonprofit. It explains why your organization exists and helps others understand your goals. A clear mission also inspires your board, volunteers, and donors.

Keep your mission specific, realistic, and focused on impact. For example: "To provide after-school tutoring for middle school students in underserved Virginia communities."

Defining your purpose early makes the next steps easier, including choosing your structure and applying for 501(c)(3) tax-exempt status.

Step 2: Choose Your Nonprofit Type

Your nonprofit type determines how your organization operates and reports.

If you plan to apply for 501(c)(3) status, your mission must serve an IRS-recognized charitable purpose such as education, religion, science, or community benefit. Your Articles of Incorporation should include a purpose statement that meets these IRS requirements.

In Virginia, most organizations form as a Nonprofit Corporation, which is standard for those seeking 501(c)(3) status.

Common nonprofit types include:

• Public Charities that rely on donations and grants to fund programs
• Private Foundations funded by one person or family that make grants to others
• Religious Organizations formed to support faith-based missions
• Advocacy Groups focused on awareness and education
• Educational, Medical, or Scientific Nonprofits promoting learning and research

Your nonprofit type affects how your nonprofit is governed, who serves on your board, and which filings are required at the state and federal level.

Step 3: Choose Your Nonprofit Name

Your nonprofit's name should reflect your mission and be easy to remember. Virginia requires that your name be unique and include a corporate identifier, such as:

• Incorporated / Inc.
• Company / Co.
• Limited / Ltd.
• Corporation / Corp

When you form your nonprofit through Beacon, we verify your name with the Virginia Secretary of State to confirm it meets all requirements.

After approval, secure your website domain and social media handles to build brand recognition and protect your organization's identity.

Step 4: Establish Your Board and Bylaws

Strong governance helps your nonprofit succeed.

Virginia law requires at least one director if the members do not already have an agreement (VA Code §§ 13.1-853 and following (2025)).

Choose an individual(s) with diverse skills and a shared commitment to your mission.

Create your bylaws — internal rules that describe how your organization operates. Bylaws usually cover:

• When and how board meetings are held
• How votes and decisions are made
• Terms for board members and officers
• How bylaws can be amended

You will need your bylaws when you apply for 501(c)(3) status and for ongoing governance.

Step 5: Appoint a Registered Agent

Every incorporated nonprofit in Virginia must appoint a Registered Agent. This person or service receives legal and official documents on behalf of your organization.

Your Registered Agent must have a physical street address in Virginia (no P.O. boxes allowed) and be available during regular business hours. Having a reliable agent outside of your organization ensures your organization never misses an important notice and keeps your private address off the public record.

Beacon can serve as your Registered Agent to help you stay compliant and protected.

Step 6: File the Articles of Incorporation

Your Articles of Incorporation, technically called "Articles of Incorporation for a Nonstock Corporation," make your nonprofit official with the State of Virginia.

This document includes:

• Your organization's legal name
• A purpose statement
• Registered Agent details
• Names of incorporators and directors
• Confirmation that the organization will not issue stock
• The procedure for how your organization's assets will be distributed if the nonprofit ceases to exist

When you form your nonprofit through Beacon, we prepare and file your Articles for you with the Virginia State Corporation Commission (SCC) Clerk's Office, ensuring accuracy and compliance.

Once approved, your organization will be recognized by the state and ready to move toward federal tax-exempt status and charitable registration, if required.

Step 7: Apply for an EIN and 501(c)(3) Tax-Exempt Status

Obtain an Employer Identification Number (EIN) from the IRS. You will use it to open a bank account, hire employees, and file taxes.

Apply for 501(c)(3) tax-exempt status. Once approved, your nonprofit can:

• Accept tax-deductible donations
• Apply for grants and other funding reserved for 501(c)(3) organizations
• Qualify for certain state and local tax exemptions

After receiving your federal exemptions, you may also apply for Virginia sales and property tax exemptions through the Virginia Department of Taxation.

When you form your nonprofit through Beacon, we can handle your EIN and 501(c)(3) filings together to save time and ensure accuracy.

Step 8: Open a Bank Account and Maintain Compliance

Open a dedicated bank account for your nonprofit. Keep donations and expenses separate from personal funds to stay transparent and organized.

Charitable organizations that solicit donations must register with the Virginia Department of Agriculture and Consumer Services (VDACS), Office of Charitable and Regulatory Programs (OCRP) and renew annually.

Most tax-exempt nonprofits must also file an annual Form 990 with the IRS to report activities and maintain federal tax-exempt status.

Virginia nonstock corporations must file an annual report and pay a registration fee to the State Corporation Commission (SCC) each year by the end of their incorporation anniversary month.

Staying current with all filings protects your tax-exempt status, builds donor trust, and strengthens your organization's reputation.

Related Articles

• Public Charity vs. Private Foundation: Understanding Nonprofit Types
• Nonprofit Compliance Checklist: What Every Founder Needs to Know
• How to Start a Nonprofit in 8 Steps in Your State