How to start a nonprofit in New Jersey - 2025 Guide

We’ve helped nonprofits just like yours build strong foundations, stay compliant, and grow with confidence. This guide will walk you through everything from picking a name to getting tax-exempt status to fundraising the right way. By the end, you’ll know exactly what to do and what to avoid.

And if you ever feel like you need extra support? Harness is here to help you grow your nonprofit and keep donors engaged, with easy-to-use tools and a team that feels like part of your own. Let’s get started.

Nonprofit corporations and their impact

Before jumping into paperwork, it helps to know what a nonprofit really is. A nonprofit corporation is a group that works for a cause instead of making money for owners or shareholders. The goal isn’t profit, it’s impact. That might mean feeding families, cleaning up parks, or teaching kids to read.

In New Jersey, starting a nonprofit means you’re forming a legal organization that can raise money, apply for grants, and do real good, but you have to follow specific rules. One big benefit? Most nonprofits can apply to be tax-exempt under Section 501(c)(3) of the Internal Revenue Code. That means you don’t pay federal income taxes, and your donors can write off their gifts.

So, why does this matter? Because when you’re set up right, you can focus on your mission instead of worrying about legal problems down the road. We’ve seen how getting these basics right helps small teams do big things.

Choose a name and reserve your nonprofit’s identity

Choosing a name sounds simple, but it’s actually a big first step. Your nonprofit’s name is how people will remember you, talk about you, and search for you online. It needs to be clear, easy to say, and connected to your mission.

In New Jersey, the name you pick has to be different from any other registered business. You can check availability by searching the State of New Jersey’s public business records. Once you find a name that works, you can reserve it while you finish the rest of your paperwork.

We’ve worked with nonprofits that rushed this step and ended up needing to rebrand later. Trust us, it’s worth slowing down to pick a name that fits and sticks.

Recruit your board and incorporators

Every nonprofit needs a group of people to help guide it. That’s your board of directors. They’re the folks who make big decisions, make sure your nonprofit follows the rules, and help keep things moving forward. In New Jersey, you need at least three directors to get started.

You’ll also need at least one incorporator, the person who officially files the paperwork to create your nonprofit. Sometimes that’s one of your directors, and sometimes it’s someone helping behind the scenes.

Here’s what we’ve learned: your board shouldn’t just be friends or people who say yes to everything. Look for folks who care about your mission, have different strengths, and are ready to be involved. A strong board can make a huge difference in your nonprofit’s success.

Prepare and file articles of incorporation in New Jersey

This is the part where your nonprofit becomes official. The articles of incorporation are a legal document that tells the State of New Jersey: “Hey, we’re starting a nonprofit, and here’s what we’re about.” You’ll file this with the New Jersey Division of Revenue.

Your articles need to include your nonprofit’s name, purpose, whether you’ll have members, your registered agent’s info, and how you’ll handle assets if your nonprofit closes someday. If you want to apply for 501(c)(3) tax-exempt status later, make sure your purpose and asset clauses meet IRS requirements too.

There’s a small filing fee, and you can usually submit everything online. We always tell new partners: double-check your info before you file. One little typo can slow things down or cause legal trouble later.

Apply for an employer identification number (EIN)

Even if your nonprofit doesn’t have any paid staff yet, you still need an EIN. It’s like a Social Security number, but for your organization. The IRS requires it for taxes, banking, and pretty much all your official paperwork.

Getting an EIN is free and fast, you can apply online through the IRS website and get your number right away. You’ll need this before you can open a bank account, hire employees, or apply for federal tax-exempt status.

We’ve seen a lot of folks put this off thinking it’s not urgent, but it really is one of the first things to knock out once your articles of incorporation are filed. It opens the door to everything else.

Draft bylaws and hold your first board meeting

Your bylaws are the rules for how your nonprofit runs. Think of them like your playbook, they explain how decisions get made, how often your board meets, who can vote, and what happens if someone steps down. You don’t need to file them with the state, but you do need to keep them on hand, and follow them.

Once your bylaws are ready, it’s time to hold your first official board meeting. At this meeting, your board should approve the bylaws, elect officers (like president and treasurer), and make any big decisions about starting up. Be sure to write down what happens in meeting minutes, this record-keeping is important.

From our experience, having clear, thoughtful bylaws makes everything smoother. It helps avoid confusion later and keeps everyone on the same page from day one.

Apply for federal tax exemption: form 1023 or form 1024

This step is a big one. To officially become a tax-exempt nonprofit under Section 501(c)(3) of the Internal Revenue Code, you need to apply to the IRS using form 1023 or form 1024.

Most nonprofits use form 1023. There’s also a shorter version, form 1023-EZ, for smaller organizations. If you don’t qualify for either, or you’re a different type of nonprofit (not a charity), you might use form 1024 instead.

This application is where you show the IRS your mission, programs, finances, and bylaws. It can feel a little intimidating, but if you’ve followed the steps so far, you’ve already done most of the work.

Here’s our advice: don’t rush. Make sure everything is clear, accurate, and matches what’s in your incorporation documents. Getting your federal tax exemption means your nonprofit won’t pay income taxes, and your donors can write off their gifts. It’s worth the effort.

Register for state tax exempt status in New Jersey

After you’ve filed for federal tax exemption, the next step is applying for state tax exemption. In New Jersey, this means your nonprofit won’t have to pay certain state taxes like corporate income taxes or sales tax on purchases.

You’ll need to send the state a copy of your IRS determination letter, the one that confirms your 501(c)(3) status. Then, you can apply for New Jersey’s state tax exemption through the Division of Taxation.

You may also need to register for other state taxes if you have employees or sell goods. Every organization’s setup is a little different, so it’s a good idea to double-check what applies to you.

One thing we always remind people: just because you're exempt federally doesn't mean you're automatically exempt in New Jersey. This extra step can save you money and help stretch every dollar further.

Register for charitable solicitation and fundraising compliance

If your nonprofit plans to ask for donations in New Jersey, you’ll need to register with the Division of Consumer Affairs. This is called charitable solicitation registration, and it’s required before you start fundraising.

There are a few types of filings, depending on how much money your organization expects to raise. Some groups may qualify for a one-time exemption if their income stays below a certain amount, but most will need to do an initial registration and renew it each year.

You’ll also need to file reports showing how you used the donations. This helps keep everything transparent and builds trust with your supporters. It’s paperwork, yes, but it’s also a great way to show donors that you take their gifts seriously.

We’ve seen how staying on top of these filings helps nonprofits grow faster, with fewer surprises down the road.

Report beneficial ownership and meet federal transparency rules

This is a newer step that many folks don’t see coming. The federal government now requires most nonprofits to report something called “beneficial ownership” to FinCEN, the Financial Crimes Enforcement Network. It’s part of the Corporate Transparency Act.

Basically, this means sharing information about the people who control or have a big influence over your nonprofit, like your board president or executive director. The goal is to prevent fraud and keep everything above board.

You’ll need to file this report within 30 days of incorporating, and again if your leadership changes. It’s a quick online filing, but skipping it could lead to fines.

We always say: it’s one more form, but it’s an important one. Keeping your nonprofit in good standing means covering all your bases, even the new ones.

Open a nonprofit bank account and manage finances

Now that your nonprofit is officially set up, it’s time to open a bank account. You’ll need your EIN, articles of incorporation, and meeting minutes showing who’s allowed to sign checks and manage funds.

Choose a bank that understands nonprofit needs, some even offer no-fee accounts or helpful extras. Make sure at least two people have signing authority for added accountability.

Setting up a clear system from the start helps avoid money mix-ups later. Track every dollar that comes in and goes out. This makes it easier to apply for grants, file taxes, and show donors you’re being responsible with their gifts.

We’ve seen small nonprofits build big trust just by staying organized. Good financial habits early on can make or break your future.

Maintain compliance and submit ongoing filings

Starting your nonprofit is just the beginning. To keep it running smoothly, and legally, you need to stay on top of your filings. In New Jersey, that means submitting an annual report to the state each year. It’s a quick form, but missing it can lead to late fees or even losing your status.

You’ll also need to file IRS Form 990 every year. This tells the IRS how your nonprofit is doing financially. Even if you didn’t make much money, you still have to file something, Form 990-N for small orgs is super simple.

If you’re registered for charitable solicitation, don’t forget to renew that too. We’ve worked with groups who fell behind on renewals and had to scramble to fix things. Staying current keeps your nonprofit in good standing and builds trust with donors, funders, and partners.

Time to focus on growth

Once your foundation is in place, it’s time to focus on growth. That means building relationships, telling your story well, and using the right tools to keep everything running smoothly.

Fundraising doesn’t have to be stressful. With platforms like Harness, you can automate donor outreach, set up recurring giving, and track campaign success, all in one place. We’ve seen small teams raise big dollars just by making giving easier and more personal.

Beyond the tech, think about what keeps your supporters coming back. Share impact updates, invite feedback, and celebrate wins together. Your cause matters, and people want to be part of that journey.

Harness helps nonprofits grow sustainable revenue through smart fundraising tools and expert guidance.