Starting a nonprofit in Indiana can feel overwhelming at first, but don’t worry, you’re not alone. Whether you’re doing this for the first time or just need a better way to stay on track, this guide will walk you through each step clearly and simply.
The good news? You don’t have to be a lawyer or a financial expert to do this. With the right tools and a clear plan, you can turn your vision into a real, working nonprofit. We’ll cover the basics like naming your organization, filing your paperwork, getting tax exemptions, and staying compliant, all in plain language, no fluff.
1. Define your mission and nonprofit corporation structure
Before you file any paperwork or think about fundraising, it’s important to be clear about what your nonprofit is all about. This is where your mission statement comes in. It’s a short explanation of why your organization exists and what you hope to achieve. This will guide every decision you make, from what services you offer to who you ask for donations.
You’ll also need to figure out the legal structure that fits what you’re trying to do. In Indiana, you’ll likely be forming a nonprofit corporation. That means you’re setting up a business that doesn’t pay out profits to owners or shareholders. Instead, everything goes back into supporting your mission. This structure is required if you want to apply for 501(c)(3) tax-exempt status later on.
2. Choose a name for your nonprofit organization
Your nonprofit’s name is more than just a label, it’s your first impression. In Indiana, your name needs to be unique and follow specific state rules. That means no duplicates or confusingly similar names to ones that already exist. You can search the Indiana Secretary of State’s website to see if your name is available.
It’s also smart to choose something that reflects your mission and is easy to remember. If you're not ready to file yet, you can reserve the name for 120 days while you get everything else in place.
3. Recruit incorporators and your board of directors
You can’t do this alone, and you shouldn’t have to. Indiana law requires at least one incorporator and a board of directors. These are the people who help form your nonprofit and guide it once it’s up and running.
Try to bring on people who care about your cause and can help with different parts of your mission. You’ll also want to make sure they understand their roles. For example, your board should approve key documents like bylaws and help make big-picture decisions.
4. Appoint an Indiana registered agent
A registered agent is someone (or a business) that gets official mail for your nonprofit, like legal notices or tax forms. In Indiana, you’re required to name one when you file your paperwork.
This person or service must have an address in Indiana and be available during normal business hours. You can be your own agent, but many nonprofits choose a professional service so nothing important slips through the cracks.
5. File articles of incorporation with the Indiana Secretary of State
Now it’s time to make it official. Filing your articles of incorporation is how you legally form your nonprofit with the state of Indiana. You can do this online or by mail.
This form includes your nonprofit’s name, purpose, registered agent, and other basic info. To qualify for federal tax exemption later, be sure to include specific IRS language about your mission and what happens to your assets if the nonprofit closes. Filing fees apply, so be prepared to pay around $30.
6. Apply for an employer identification number (EIN) from the IRS
Every nonprofit needs an EIN, even if you won’t have employees. It’s like a Social Security number, but for your organization. You’ll use it to open a bank account, file taxes, and apply for exemptions.
You can get an EIN for free by applying online at the IRS website. It only takes a few minutes, and you’ll get your number right away.
7. Draft bylaws and initial policies for your nonprofit
Bylaws are the rules for how your nonprofit runs. They cover things like how often you’ll meet, how directors are elected, and what happens if someone steps down. You’ll also want to write a conflict of interest policy to show you’re operating fairly.
This isn’t just paperwork, it’s what keeps things running smoothly. You’ll need to keep these documents in your nonprofit’s records and refer back to them as your group grows.
8. Hold your initial organizational board meeting
This is your nonprofit’s first official meeting. Your board will vote to approve the bylaws, appoint officers (like president or treasurer), and pass a resolution to apply for tax-exempt status.
Be sure to take notes, meeting minutes are required and will be part of your official records.
9. Apply for 501(c)(3) or other federal tax exemption
This step is a big one: applying to the IRS for federal tax exemption under section 501(c)(3) of the Internal Revenue Code. If you qualify, your nonprofit won’t pay federal income tax, and donations to your organization will be tax-deductible.
There are two main forms, Form 1023 and the simpler Form 1023-EZ. The EZ form is faster and cheaper, but only smaller nonprofits can use it. Make sure you meet the IRS criteria before applying. The application can be submitted through the IRS website, and there’s a filing fee that depends on which form you use.
10. Register for Indiana state tax exemptions
Even if you’re exempt from federal tax, you’ll need to apply separately for state-level exemptions. This includes income tax and sales tax in Indiana.
You’ll apply through the Indiana Department of Revenue. Be ready to share your EIN, IRS determination letter, and other basic info. Getting state approval helps save money over time and proves your nonprofit is fully recognized.
11. Register for charitable solicitation and other permits
If you plan to raise money from the public, you’ll need to register with the Indiana Attorney General’s office. This is called charitable solicitation registration.
You may also need local business licenses or permits, depending on what services you offer. Don’t skip this step, staying compliant from the start will save you a lot of trouble down the road.
12. Open a bank account for your Indiana nonprofit
Once you have your EIN and articles of incorporation, you can open a bank account in your nonprofit’s name. This keeps your organization’s funds separate from your personal money and helps with clean recordkeeping.
Most banks will ask for your EIN, bylaws, articles of incorporation, and a resolution from your board. It’s a good idea to shop around for a bank that supports nonprofits and doesn’t charge high fees.
13. Comply with ongoing reporting requirements
Starting a nonprofit is just the beginning, you also have to keep it in good standing. In Indiana, that means filing a Business Entity Report every two years. Federally, you’ll file IRS Form 990 each year to keep your tax-exempt status.
You’ll also need to renew your charitable solicitation registration and stay on top of any local requirements. Staying organized here is key to avoiding penalties and protecting your nonprofit’s reputation.
Changing the world in your own way
Starting a nonprofit in Indiana takes time, effort, and a little bit of patience, but it’s absolutely doable. Whether you’re focused on helping your neighborhood, supporting a cause, or changing the world in your own way, these steps will help you build something real and lasting.
And you don’t have to do it all on your own. At Harness, we’ve helped organizations like yours set up, grow, and thrive without getting lost in the paperwork. If you’re ready to make a bigger impact with less stress, we’re here to help every step of the way.
