How to start a nonprofit in Arizona: From paperwork to launch

We’ve walked through this process before, and we know where people usually get stuck (and how to keep moving). In this guide, we’ll walk you through each step, from picking a name to getting tax-exempt status, all in plain English. You don’t need to be a lawyer or accountant to follow along.

What a nonprofit organization is

Before jumping into forms and fees, it’s important to understand what a nonprofit actually is, and isn’t. A nonprofit organization is created to serve the public in some way, whether that’s through education, charity, religion, or community work. Unlike regular businesses, nonprofits don’t exist to make a profit for owners or shareholders. Instead, any money they make goes right back into their programs and services.

In Arizona, if you want your nonprofit to be officially recognized as tax-exempt by the federal government, you’ll need to apply under section 501(c)(3) of the Internal Revenue Code. That means you’ll follow some extra rules, but you’ll also get essential benefits, like not paying federal income taxes and being able to receive tax-deductible donations.

Also, keep in mind that not all community groups or passion projects need to be full-fledged nonprofits. Sometimes, starting something informally, or teaming up with an existing organization, can be just as powerful. But if you’re ready to build something that lasts, becoming a nonprofit is a solid step.

Choose your board of directors and prepare your mission

This is where your vision starts taking shape. To form a nonprofit in Arizona, you’ll need at least one director, but most organizations choose a small group of people they trust. These folks will become your board of directors, and they’ll help guide your nonprofit’s decisions, hold you accountable, and make sure the organization stays on track.

Pick people who believe in your mission and bring different strengths to the table. Maybe one is great with money, another with community outreach, and someone else with legal or admin experience. You don’t need a giant board to start, just a group that’s committed and dependable.

Now’s also the time to get clear about your mission. What exactly do you want to do? Who do you want to help? Your mission statement should be short and clear, something you can say out loud in one breath. This will show the IRS, your donors, and your future supporters what your nonprofit is all about.

Name your organization and appoint a statutory agent

Picking a name for your nonprofit might seem easy, but it’s an important step. You want something that reflects your mission and is easy to remember. In Arizona, your name has to be unique, meaning no other organization in the state is already using it. The Arizona Corporation Commission has a name search tool online that helps you check for availability.

Once you've picked a name, you’ll also need to choose a statutory agent. This is the person (or business) who agrees to receive official documents and legal notices on behalf of your nonprofit. It can be one of your board members, or you can hire a professional service. The critical part is that the agent has a physical address in Arizona and is available during normal business hours.

Think of your statutory agent as your nonprofit’s “mailroom” for anything legal or official. It’s a small detail, but a required one, so make sure it’s someone reliable.

File your articles of incorporation

This step makes your nonprofit official in the eyes of the state. You’ll need to file something called the Articles of Incorporation with the Arizona Corporation Commission. This document includes your nonprofit’s name, purpose, the name of your statutory agent, and a few legal bits the IRS expects if you plan to apply for tax-exempt status.

Arizona requires specific language in your articles if you want to be recognized as a 501(c)(3) organization. This includes wording about your mission being charitable and what happens to your assets if the nonprofit ever closes down. The IRS has sample language you can use, and it’s a good idea to copy that exactly.

There’s also a filing fee, usually around $40 to $75, and you’ll need to submit a cover sheet and a Certificate of Disclosure. You can file online, by mail, or in person. Once the ACC reviews and approves your documents, they’ll send you a stamped copy, which you'll need later for tax filings and bank accounts.

This step might feel heavy, but it’s a big milestone. You’re now a recognized Arizona nonprofit corporation.

Apply for your employer identification number (EIN)

Now that your nonprofit is officially registered in Arizona, it’s time to get your Employer Identification Number, also called an EIN. This is like a Social Security Number, but for your organization. You’ll need it to open a bank account, hire staff, apply for tax exemption, and file taxes.

The good news? It’s free and easy. You can apply online through the IRS website, and you’ll get your EIN right away. Just make sure the person applying is someone authorized to act for your nonprofit, usually a board member or founder.

Even if you don’t plan to have employees right away, the EIN is required for pretty much everything official. Think of it as your nonprofit’s ID number, it’s how the IRS and other agencies keep track of you.

Apply for federal tax exemption

Getting federal tax exemption is a big deal, it means your nonprofit won’t have to pay federal income taxes, and donors can make tax-deductible contributions to support your work. To get there, you’ll need to apply with the IRS using Form 1023 or the shorter Form 1023-EZ, depending on your size and budget.

Form 1023 is the longer, more detailed version. You’ll need to describe your mission, programs, fundraising plans, and how you’ll use your money. There’s a fee (usually between $275 and $600), and you’ll submit everything through the IRS website. The application can take a little while to process, so be patient.

One tip? Be clear and honest in your application, especially when describing your activities. The IRS wants to see that your nonprofit exists to serve the public, not private interests.

Once you're approved, you'll get a determination letter from the IRS. Hold on to it! You'll need it for grants, donations, and legal filings down the road.

Apply for state tax exemption and Arizona business registration

Once your federal tax exemption is approved, you’ll want to handle your state-level requirements too. In Arizona, that means applying for state tax exemptions and registering with the Arizona Department of Revenue.

First, check if your nonprofit qualifies for exemption from state income tax. You’ll need to submit a copy of your IRS determination letter, plus a few details about your organization. This step helps you avoid paying state corporate income tax on money your nonprofit earns through its programs or donations.

Depending on what your organization does, you might also need to register for a Transaction Privilege Tax license, Arizona’s version of sales tax. If your nonprofit sells goods or services, even occasionally, this might apply to you. You can register online through the Arizona Department of Revenue’s AZTaxes.gov portal.

And don’t forget about charitable solicitation. If you plan to raise money from the public, some counties or cities may ask you to register locally too. It’s not complicated, but it’s important to check.

Hold your first board meeting and keep records

Now that your paperwork’s in place, it’s time to bring your board together for the first official meeting. This is where your nonprofit really starts to take shape. At this meeting, you’ll approve your bylaws, elect officers (like president, treasurer, and secretary), and vote on key decisions that set the direction of your organization.

Make sure someone is keeping good notes, called “meeting minutes”, during this session. You’ll need to keep these on file as part of your official records. It doesn’t have to be fancy, just a simple record of what was decided and who was there.

You should also organize important documents like your EIN letter, articles of incorporation, IRS determination letter, and any licenses you’ve received. Keeping a binder (digital or physical) will help you stay organized and ready if funders, auditors, or the state ask to see anything.

This first meeting is also a good time to go over your mission again, set early goals, and talk about how you’ll start making an impact.

Stay compliant with federal and state regulations

Starting your nonprofit is a big win, but keeping it running smoothly is just as important. Once you’re up and going, there are a few ongoing requirements to stay in good standing with both the IRS and the state of Arizona.

Each year, your nonprofit will need to file Form 990 with the IRS. This tells them how your money is being spent and shows that you’re still following the rules for tax-exempt organizations. There are different versions of the form based on your annual revenue, so be sure to choose the right one.

In Arizona, you’ll also file an annual report with the Arizona Corporation Commission. This report updates your contact info, board members, and other basic details. It’s a quick form, but easy to forget, so set a calendar reminder.

Depending on what your nonprofit does, you may also need to renew your charitable registration, licenses, or other local filings. Skipping these steps can cause penalties or, worse, loss of your nonprofit status.

Staying on top of these tasks keeps you in good standing and shows donors and supporters that you're serious and well-run.

Launch your nonprofit and engage your community

You’ve done the hard part, now it’s time to share your mission with the world. This is where you get to connect with the people who care about your cause, build momentum, and start making real impact.

Begin by spreading the word. A simple, clean website goes a long way in making your nonprofit look professional and trustworthy. Include your mission, how people can help, and a way to donate. Make it easy for supporters to get involved.

Next, start building your donor base. Even if it’s just friends and family at first, keep them updated with stories, progress, and impact. Share updates on social media, send short emails, and celebrate small wins.

And remember, you don’t have to do all of this alone. Harness isn’t just a toolkit, it’s a full-service team behind your mission. From setting up donation forms to managing donor outreach, follow-ups, and retention, we handle the heavy lifting so you can stay focused on what matters most. We've helped nonprofits raise millions without stretching their teams thin.

You’re not just starting a nonprofit. You’re starting a movement. Let’s make it count.