How to Incorporate a Nonprofit in Alaska

Choose a name for your nonprofit

When choosing a name for your nonprofit organization, it should reflect your organization’s mission. It also needs to be unique and not used by other organizations in Alaska.

Like other corporations, nonprofits can reserve their future company’s name. Alaska lets people hold the name for 120 days, giving them time to complete the rest of the process without risking losing it.

Appoint a board of directors

Nonprofits will need a board of directors responsible for overseeing the organization. In Alaska, you need at least three directors who care about your mission and want to help guide your nonprofit.

Filing the Articles of Incorporation

The next step in the incorporation of your business is filing the Articles of Incorporation. This document officially creates your nonprofit and, as of 2024, has a filing fee of $50. It includes essential information like the organization’s name, address, and mission. You will also need to state whether or not your nonprofit will have members.

Create and adopt bylaws for your nonprofit

Bylaws are the rules that govern how decisions will be made for your nonprofit. Alaska does not legally require them, but it is still a good idea to create them to help keep everything organized and functional.

Once your nonprofit is incorporated and you have created your bylaws, it is time to hold the first board meeting. During this meeting, the board will adopt the bylaws and elect officers. This meeting sets the stage for how your nonprofit will operate moving forward.

Receive your Employer Identification Number (EIN)

Your nonprofit needs an EIN from the IRS to complete a nonprofit organization’s setup. This number allows nonprofit owners to open a business bank account, apply for tax-exempt status, and file taxes.

Apply for federal tax-exempt status

Nonprofit organizations are not automatically exempt from taxes, and most nonprofits want to be recognized as tax-exempt by the IRS. You must file Form 1023-EZ or Form 1023 to apply for tax-exempt status. Form 1023-EZ requires nonprofits to fall under specific qualifications to be approved. To check eligibility, fill out the Eligibility Worksheet included in Form 1023-EZ.

The application fee ranges from $275 for Form 1023-EZ to $600 for Form 1023 as of 2024. If approved, your nonprofit will be exempt from federal taxes and can accept tax-deductible donations.

Obtain necessary permits and licenses

Depending on your nonprofit’s work, you may need specific permits or licenses to operate in Alaska. Nonprofits will be required to register with the Alaska Department of Law.

• Limited liability protection: When you incorporate your nonprofit, it becomes a separate legal entity. The law protects your assets if you ever face legal trouble.
• Tax benefits: If the IRS recognizes your nonprofit as tax-exempt, you will not have to pay federal income taxes. Your donors can also deduct contributions from their taxes, encouraging more donations.

• Access to grants and funding: Many grants and funding opportunities are only available to incorporated nonprofits.
• Credibility and trust: An incorporated nonprofit may seem more credible and trustworthy. People are more likely to donate to an organization recognized by the state and IRS.