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Follow the steps below to start a nonprofit organization in Illinois.
The name must be unique. No other corporation or LLC can have the same name. The name must not contain the word or words "democrat," "democratic," "republican" or any other name of a political party without the consent of the that party.
If the name indicates that the entity may have been formed for a purpose not authorized under the statute, then the letters "NFP" must be at the end of the name.
You may check to see if the name you chose is available by using the Secretary of State’s website. You can also call to confirm it complies with any of the additional requirements by calling the Secretary of State’s office in Springfield.
As with any Illinois entity, you must appoint a registered agent for your organization. The registered agent is the person or organization who agrees to accept legal notices on behalf of your not-for-profit. The registered agent must have a registered office in Illinois that is not a P.O. Box.
In Illinois, each nonprofit is governed by a board of directors. The board must have at least 3 people.
The initial board of directors is appointed by the incorporator of the nonprofit. They are listed directly on the articles of incorporation.
To qualify as a nonprofit, your nonprofit must have a charitable purpose. This can include:
- Helping the poor,
- Religion,
- Education or science,
- Public buildings or monuments,
- Easing neighborhood tensions,
- Fighting prejudice and discrimination, and
- Defending human and civil rights.
This list includes the more common purposes for which nonprofits are formed. There are other purposes allowed but not listed here. See this guide from the Illinois Secretary of State for all the allowed purposes.
Create the organization by filing your articles of incorporation with the Illinois Secretary of State (Form NFP 102.10).
Bylaws are the rules for how the organization will operate. Some of the rules that bylaws cover include:
- Who has the power to make decisions,
- The process for making decisions,
- The relationships between all the people involved in the organization such as officers, board members, and staff,
- How many people will be on the board of directors,
- How the board of directors will be chosen,
- How long the board of directors' members will serve,
- How to fill a spot on the board of directors if someone leaves,
- How to solve disagreements among the board members, and
- How to be sure that decisions and actions of the organization are not the legal responsibility of only a few people.
You should develop bylaws specifically for your organization. It is not a good idea to use bylaws that you get from another organization or find on the internet. It is best to have a lawyer write the bylaws to make sure that they follow state and federal law. Learn more in this guide from the Illinois Secretary of State.
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