How to start a nonprofit
in Louisiana.
12 steps from idea to IRS-recognized 501(c)(3). Every form linked. Every state-specific requirement flagged. Honest about what's hard, what's optional, and what you can skip.
Before you start — please read this
Louisiana already has over 20,000 registered nonprofits competing for limited resources. Resources are tight. Funder competition is brutal. Most new nonprofits don't make it past year three.
Before you incorporate, honestly ask:
- · Could I partner with an existing org doing similar work instead?
- · Could I get a job at one of those orgs and have impact faster?
- · Could I volunteer first and learn the landscape before starting my own?
- · Would a fiscal sponsor let me run the program without standing up a separate 501(c)(3)?
- · Could a for-profit business achieve the same impact with cleaner economics?
If after all of that you're still convinced you need a new 501(c)(3) — the steps below are real and the work is doable.
What is a nonprofit, actually?
"Nonprofit" is a tax status, not a business model. It means an incorporated business operating for public benefit where profits get reinvested in the mission instead of paid out to shareholders. There are nearly three dozen flavors of tax-exempt — 501(c)(3) is the largest and the one most people mean.
Incorporating as a nonprofit in Louisiana does NOT automatically grant 501(c)(3) status, federal tax exemption, or LA state sales/income tax exemption. Each is a separate application. Consulting a CPA or attorney is strongly advised — it's cheaper than doing it twice.
The 12 steps
Plan, plan, plan
Before any forms, lock down your mission, every program activity, your funding sources, and a map of who is already doing similar work in your community.
- ·Clear, board-approved mission statement (your purpose, defined)
- ·Vision statement (the better future state you exist to create)
- ·Honest market assessment — who already serves this need?
- ·A funding hypothesis you can defend (where will the first $50K come from?)
Recruit and develop a Board of Directors
Louisiana law requires at minimum three directors. Beyond legal compliance, your board is your strongest asset and your biggest reputational risk.
- ·Directors who believe in your mission AND bring real expertise (legal, finance, fundraising, programs, comms)
- ·Diversity of backgrounds, not just optics — actual decision-making perspective
- ·Strategic thinkers who will challenge you, not rubber-stamp
- ·Board responsibilities: define mission · select & assess CEO · ensure planning · ensure resources · public ambassadorship · ethical/legal integrity · onboard new members
Define the activities of the organization
Map out exactly what you will do, what it costs, and where the money comes from. The 1023 application requires a 3-year budget.
- ·Year-1, Year-2, Year-3 budget
- ·Major expense lines (program · admin · fundraising)
- ·Revenue mix (grants · individual · earned · government contracts)
- ·Fundraising goals + the strategy to hit them
Reserve a corporate name
File a name reservation through the Louisiana Secretary of State. Search the SOS database first — name conflicts get applications rejected.
Obtain your EIN (Employer Identification Number)
Free directly from the IRS. Avoid third-party sites that charge for this. Takes about 10 minutes online during business hours.
File Articles of Incorporation
The legal document that creates your nonprofit corporation under Louisiana law. Filed with the LA SOS. Must include the IRS-required 501(c)(3) language for the dissolution clause and the purpose clause — without those, the IRS will reject your 1023.
Adopt Bylaws
The internal rulebook for how your board governs the org — meetings, quorum, officer terms, conflict-of-interest policy. The IRS reviews your bylaws as part of the 1023.
- ·Conflict-of-interest policy (IRS sample available — they basically expect you to use it)
- ·Officer roles & election procedures
- ·Meeting frequency + quorum + voting rules
- ·Amendment process
IRS Form 1023 (or 1023-EZ)
The big one. Your formal application for federal 501(c)(3) status. Most small startups can use Form 1023-EZ ($275 user fee, ~3 months); larger orgs (gross receipts > $50K/yr or assets > $250K) must use the full 1023 ($600 fee, 6–12 months typical).
- ·Narrative description of activities — be specific, not aspirational
- ·List of board members with addresses + compensation (if any)
- ·Detailed 3-year budget (matches Step 3)
- ·Public charity vs. private foundation election
- ·Conflict-of-interest policy attached
Develop Policies & Procedures Manual
Beyond bylaws — written policies for HR, financial controls, document retention, whistleblower, gift acceptance, expense reimbursement. Funders ask. Auditors require.
- ·Financial controls + check-signing authority
- ·Document retention & destruction
- ·Whistleblower protection
- ·Gift acceptance + naming rights
- ·HR + employment basics if you have staff
Open a bank account
You need the EIN, the SOS-stamped Articles of Incorporation, and a board resolution authorizing the account. Use a nonprofit-friendly bank — Iberia, Hancock Whitney, and several CDFIs offer no-fee nonprofit accounts.
Determine insurance needs
At minimum General Liability and Directors & Officers (D&O). D&O is non-negotiable — without it your board members are exposing personal assets and most won't serve.
- ·General Liability — protects against bodily injury / property damage claims
- ·Directors & Officers (D&O) — protects board from governance lawsuits
- ·Workers' Comp — if you have any staff (W-2 or 1099 over a threshold)
- ·Cyber liability — if you store donor data or PII
Establish an operations calendar
Recurring rhythms keep boards engaged and audits clean.
- ·Board meetings (quarterly minimum, monthly common in year 1)
- ·Annual fundraising events / appeals
- ·IRS Form 990 / 990-EZ / 990-N filing (deadline = 5.5 months after fiscal year end)
- ·Louisiana Annual Report (every year, $5 fee, online via geauxBIZ)
- ·LA charitable solicitation registration if you fundraise statewide
Louisiana-specific compliance
Federal 501(c)(3) is half the work. Here's what Louisiana requires on top.
Louisiana state tax exemptions
Federal 501(c)(3) status does NOT auto-grant LA sales/income tax exemption. After IRS approval, file separately with the LA Department of Revenue.
LA Dept. of Revenue — Sales Tax ExemptionLouisiana Annual Report
$5/year via geauxBIZ. Miss it 3 years in a row and the LA SOS will administratively dissolve your corporation.
geauxBIZ — Annual Report filingCharitable solicitation registration
If you solicit donations from Louisiana residents, you may need to register with the LA Department of Justice / Attorney General's office. Check the threshold first.
LA Attorney General — Charitable solicitationIRS Form 990 / 990-EZ / 990-N
Annual federal information return. 990-N (the e-Postcard) is fine if gross receipts < $50K. 990-EZ for $50K–$200K. Full 990 above. Three years missed = automatic 501(c)(3) revocation.
IRS — 990 seriesMission vs. Vision — get this right early
The organization's purpose, defined and approved by the Board of Directors, specifically stated. What you do, for whom, and why.
A vivid picture of an ambitious future state better than what now exists. The world you're trying to bring into being.
You have a nonprofit. Now you need verified outcomes.
The first time a funder asks "show me what your participants actually accomplished" — vague impact stories don't cut it. PROOF for Cohorts issues your participants Open Badge v2.0 credentials with public verification URLs. Two layers of trust: Candid verifies the organization. DowUrk verifies the program.
Where to go next
- Louisiana Alliance for Nonprofits (LANO) — official "Starting a Nonprofit" guide + membership
- LANO — "How to Start a Nonprofit" 2023 PowerPoint deck
- IRS Charities & Nonprofits — top-level resources
- Candid — funder discovery + Form 990 lookup
- DowUrk Grant Concierge AI — find grants matched to your mission
- DowUrk 501(c)(3) Grant Pipeline tracker — board-ready PDFs
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