How To Start A Nonprofit Organization in North Dakota In 12 Steps

Ask yourself these foundational questions to shape your nonprofit's purpose:

• What unmet need in the North Dakota community will your organization address?
• Who specifically will benefit from your programs or services?
• What activities, services, or initiatives will you deliver?
• How will you measure meaningful community impact within the first year?

Before filing anything, research whether another organization is already serving your cause in your area. If one exists, partnering with them may be a more effective path than launching a competing entity.

Your mission statement drives everything — from your Articles of Incorporation to IRS Form 1023. Keep it focused, specific, and aligned with a recognized exempt purpose.

North Dakota Entity Types

Nonprofit Corporation (most common): Provides liability protection for directors and officers; formed by filing Articles of Incorporation ($40) with the North Dakota Secretary of State under N.D.C.C. §10-33. Best structure for pursuing 501(c)(3) status.

Unincorporated Nonprofit Association: An informal group with no state filing required, but with significantly less legal protection for members.

To be approved by the North Dakota Secretary of State, your name must:

• Not conflict with any other organization already registered in the state
• Be expressible in letters or characters used in the English language as they appear in the ASCII table
• Not be misleading or suggest government affiliation

Notably, North Dakota does not require the name to contain words like "Corporation," "Incorporated," or "Limited" — though it may include them if you choose.

Before submitting your Articles of Incorporation, conduct a name search through the North Dakota Secretary of State's online database, check domain availability for your future website, and make sure the name reflects your mission in a memorable, recognizable way.

With thousands of nonprofits registered nationally, a distinguishable and compliant name is your first step toward establishing organizational credibility.

North Dakota Officer Requirements

A President and Secretary are both required at minimum. A Treasurer is strongly recommended for financial oversight. Officers must be at least 18 years of age.

Key Steps

Recruit: Build a board of 3 or more directors with diverse skills — finance, legal, community relations — who are genuinely committed to your mission and unrelated to one another to satisfy IRS standards.

First Meeting (post-Articles filing): Adopt bylaws, appoint officers, approve your EIN and bank account, and establish a conflict of interest policy.

Document: Keep thorough meeting minutes — the IRS will review your governance practices during the Form 1023 application process.

Well-constructed bylaws prevent internal disputes, guide decision-making, and signal to the IRS that your organization operates with integrity and structure.

What the Registered Agent Is Used For

• Service of process for legal notices and lawsuits
• State filing reminders and compliance notifications
• Official government correspondence

Key Requirements

The registered agent must maintain a physical street address in North Dakota — P.O. boxes are not permitted. They must be available during standard business hours to reliably receive and forward official documents. The agent must consent to the appointment.

Your Options

1. Use Your Own Registered Agent

Appoint a director, officer, or another North Dakota resident using their physical address. Note that this address becomes part of the public record.

2. Hire a Professional Registered Agent Service

Professional services offer privacy, reliable availability, and compliance tracking for an annual fee — a popular choice for founders who want to keep personal addresses off public documents.

Filing Details

Appoint your registered agent during formation through your Articles of Incorporation ($40 filing fee) submitted to the North Dakota Secretary of State by mail, fax, or online. Changes to your registered agent can be filed separately with the Secretary of State.

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What You Must Submit

File the North Dakota Nonprofit Corporation Articles of Incorporation (Form SFN 13003), available from the North Dakota Secretary of State. This document legally establishes your nonprofit as a recognized entity and must be completed before applying for IRS 501(c)(3) tax-exempt status.

What To Include

Your purpose clause and dissolution provision (specifying that assets distribute to another 501(c)(3) upon dissolution) are critical IRS requirements that must appear in your Articles — not just your bylaws.

Filing Details

• Filing Fee: $40
• Methods: Mail, fax, or online submission to the North Dakota Secretary of State
• Processing Time: Approximately 30 days; no expedited processing is available
• No initial report required after filing

Why Your Nonprofit Needs an EIN

Your EIN is required to:

• Open a dedicated nonprofit bank account
• Hire employees and process payroll
• File federal tax returns and Form 990 reports
• Apply for grants and other funding opportunities
• Accept and process charitable contributions

Information Required for Application

Have the following ready before applying:

• Legal name, address, and purpose from your Articles of Incorporation
• Responsible party details — a principal officer or director with a valid SSN or ITIN who controls the organization's finances
• Entity type: Select "Nonprofit Organization" (or "Church" if applicable)

How To Apply

Online (fastest/free): Use the IRS EIN application tool at irs.gov — available Monday through Friday, 7 a.m. to 10 p.m. ET. Your EIN is issued instantly upon completion. Select "View Additional Types..." → "Nonprofit Organization."

Other Methods:

• Form SS-4 by Fax: Fax to (859) 669-5760; receive EIN within approximately 4 business days
• Form SS-4 by Mail: Send to Cincinnati, OH 45999; allow 4–6 weeks
• Phone (international applicants only): Call (267) 941-1099, 6 a.m.–11 p.m. ET

After You Get Your EIN

Use your EIN immediately for banking, Form 1023 (501(c)(3) application), and FinCEN BOI reporting. Save your IRS confirmation letter securely. Note that IRS systems may take up to two weeks to reflect your new EIN across all departments.

Common 501(c) Paths

• 501(c)(3): Charitable, educational, or religious nonprofits. File Form 1023 or Form 1023-EZ.
• 501(c)(4): Social welfare organizations. File Form 1024-A.
• Others: Trade groups, professional associations, and clubs. File Form 1024.

What You Will Typically Prepare

• Filed Articles of Incorporation (with 501(c)(3) purpose and dissolution clauses)
• Adopted bylaws and conflict of interest policy
• Financial information (budget and narrative), confirming 3 unrelated directors

North Dakota-Specific Steps

Federal IRS Approval: Submit via Pay.gov (1–3 months for 1023-EZ; 3–6+ months for standard Form 1023). Upon approval, you receive your IRS Determination Letter.

State Income Tax: Upon receiving your IRS Determination Letter, your organization is automatically exempt from North Dakota corporate income tax — no separate application or state notification is required.

State Sales Tax: Most North Dakota nonprofits are not automatically exempt from state sales tax. Certain organizations such as hospitals and schools receive automatic sales tax exemption, but general 501(c)(3) charities typically cannot obtain it. Review your eligibility with the North Dakota Office of State Tax Commissioner.

If you require a sales tax license (e.g., your organization sells goods), register with the North Dakota Office of State Tax Commissioner using the Application to Register for Income Tax Withholding and Sales and Use Tax Permit — no fee required.

The Determination Letter

Your IRS Determination Letter is proof of tax-exempt status and is essential for grant applications, donor trust, and ongoing state compliance. Ongoing requirements include annual IRS Form 990 filings and maintaining accurate state records.

Steps To Open a Nonprofit Bank Account

Complete these steps after your Articles of Incorporation are filed, your EIN is issued, and bylaws are adopted:

• Hold your initial board meeting and pass a resolution naming authorized signers on the account.
• Gather required documents: filed Articles of Incorporation, IRS EIN letter, adopted bylaws, board resolution, and government-issued IDs for authorized signers.
• Choose a bank offering nonprofit or business checking accounts with low or no monthly fees.

Maintain Federal Compliance

File an annual IRS Form 990 (or applicable variant — 990-EZ or 990-N) to report your activities and preserve your 501(c)(3) status. The specific form you file depends on your organization's annual gross receipts.

North Dakota Ongoing Compliance

North Dakota does not require an annual report for nonprofit corporations. However, ongoing compliance responsibilities include:

• Maintaining accurate registered agent information with the Secretary of State
• Keeping thorough board meeting minutes
• Monitoring state tax registration status with the North Dakota Office of State Tax Commissioner
• Renewing your charitable solicitation registration annually (see Step 12)

Staying current on all filings protects your legal standing, tax-exempt status, and donor confidence.

State Income Tax Exemption

No application required. North Dakota automatically exempts recognized 501(c)(3) organizations from state corporate income tax upon IRS approval. You do not need to file any form or notify the North Dakota Office of State Tax Commissioner to claim this exemption.

State Sales Tax Exemption

Unlike income tax, sales tax exemption is not automatic for most North Dakota nonprofits. General charitable organizations typically cannot obtain an exemption from state sales tax. However:

• Hospitals and schools are automatically exempt from sales tax under North Dakota law.
• If your nonprofit sells taxable goods, you must obtain a sales tax license from the North Dakota Office of the State Tax Commissioner.
• If your nonprofit makes purchases, review eligibility with the comptroller's office, as exemption availability varies by organization type and transaction.

Sales Tax License (If Applicable)

Submit to: North Dakota Office of State Tax Commissioner Form: Application to Register for Income Tax Withholding and Sales and Use Tax Permit Fee: $0 Filing Method: Mail

Property Tax Exemption

Property tax exemptions in North Dakota are not administered at the state level. Contact your local county assessor's office to determine whether your organization's property may qualify for a local exemption based on its exempt purpose and use.

Review the North Dakota Office of State Tax Commissioner's guidance to understand which transactions and organizational types qualify for relief, and ensure your records are updated if your organization's status or activities change.

When Registration Is Required

Any charitable organization planning to solicit donations from North Dakota residents — including through online fundraising campaigns — must register with the Secretary of State before soliciting.

Foreign qualification is a prerequisite for out-of-state organizations soliciting in North Dakota.

Organizations That May Qualify for Exemption

Certain categories of organizations — such as religious congregations, small organizations below a fundraising threshold, and others — may qualify for an exemption from charitable solicitation registration. Review the North Dakota Secretary of State's charitable organization guidance to confirm whether your organization qualifies before assuming an exemption applies.

Fundraising in Other States

If your nonprofit plans to solicit donations nationally or across state lines — including through your website — you may need to register in additional states. Fundraising compliance requirements vary significantly by state, and multi-state registration is an important step for any organization with a national fundraising reach.