Some people or organizations go into business to make profits, whereas others have a charitable motive and are not interested in profit-making. For the latter group forming a non-profit could help bring their ideas into operation.

Let’s look at some questions and answers about how to form a non-profit with a focus on North Carolina law.

Question 1. What is the process for forming a non-profit?

Answer: With an idea already set, Articles of Incorporation and other forms such as Bylaws and Conflict of Interest Policy help kickstart a non-profit. In North Carolina, the Articles of Incorporation need to be filed with the North Carolina Secretary of State by postal mail or online.

Question 2: What is Articles of Incorporation?

Answer: Articles of Incorporation is the form that creates a corporation with a name and purpose identified. When it is filed, the corporation comes into existence. N.C.G.S.A § 55A – 2 – 02

Question 3: What are Bylaws and how is that filled out?

Answer: Bylaws are the initial regulations adopted by the board of directors of a corporation for managing the corporation, here the non-profit. N.C.G.S.A § 55A – 2 – 06

Question 4: What is a conflict of interest policy?

Answer: It is a document that explains an agreement by the board of directors not to engage in activities that conflict with their role in the corporation. For instance, causing the corporation to enter a business relationship with another business that a board of director has a monetary interest in.

Question 5: Is there any cost involved with filing these forms?

Answer: Currently, filing Articles of Incorporation for a non-profit in with the North Carolina Secretary of State costs $60. N.C.G.S.A § 55A – 1 – 22(1)

Question 6: What costs should I anticipate if I need a lawyer’s help with filling the forms?

Answer: The cost for a lawyer to help fill the forms depends on how much the lawyer charges for such services.   However, Small Business and Entrepreneurship Clinic at Elon University School of Law provides small businesses and entrepreneurs with free legal help to form businesses, including non-profits. It also provides free legal services in drafting and reviewing the forms for forming a business.

The Elon Law Small Business and Entrepreneurship Clinic is located at 229 North Greene Street, Greensboro, NC 27401. It can be contacted by email at businessclinic@elon.edu.