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How to Start a Nonprofit in North Carolina: Registration, Filings, and Annual Reports
From incorporation to annual filings—your step-by-step guide to staying compliant.
Every state has its own rules for starting and running a nonprofit. In North Carolina, the process involves initial registration, applying for tax-exempt status, and recurring annual filings. Knowing these requirements from the start will help your organization remain compliant and in good standing.
Understanding the Basics
Before focusing on North Carolina-specific filings, every nonprofit must complete a few foundational steps. These ensure your organization is legally recognized, properly structured, and positioned to apply for tax-exempt status.
Name your organization
Select a name that is distinguishable from other registered entities and follows state naming rules. Checking availability through the North Carolina Secretary of State’s online business search.
Choose your board of directors
Nonprofits are governed by a board that carries fiduciary responsibility. At minimum, you’ll need one incorporator to file your Articles of Incorporation, three directors to guide oversight, and an officer (often a secretary) to maintain records. North Carolina does not require directors or officers to reside in the state.
Define your charitable purpose
Your purpose must align with IRS requirements for tax-exempt status—commonly charitable, educational, religious, or scientific. It must serve the public rather than private individuals or political interests. A clear purpose statement is essential for both incorporation and federal exemption applications.
Appoint a registered agent
A registered agent receives official communications, such as legal notices and government filings, on behalf of your nonprofit. This can be an individual or a business entity, but they must be based in North Carolina or authorized to operate there.
How to register a nonprofit in the state of North Carolina?
You’ll need to take the formal steps that establish your nonprofit as a recognized entity in North Carolina:
File Articles of Incorporation with the North Carolina Secretary of State
To legally incorporate your organization in North Carolina, you must file the Articles of Incorporation with the Secretary of State. In North Carolina, Form N-01 serves as the official document to incorporate a not-for-profit.
There is no specific deadline; however, the form should be filed before commencing legal operations or applying for tax exemption.
Filing Methods:
- Online: Submit via the NC Secretary of State Online Portal.
- Mail: Send the completed form to the Secretary of State Business Registration Division
Secretary of State,
Business Registration Division
P.O. Box 29622
Raleigh, NC 27626-0622
| Form | Due date | Fee | Filing Method |
|---|---|---|---|
|
Form N-01 (Articles of Incorporation) |
No specific due date, file before starting the organization |
$60 |
Mail or Online. |
Apply for an Employer Identification Number (EIN) for Your Organization
Nonprofit organizations are required to obtain an Employer Identification Number (EIN) from the IRS. This will serve as the organization's federal tax identification number and is essential for conducting legal and financial activities.
Although there is no specific deadline to apply, it is recommended to obtain an EIN as early as possible, as it is necessary for opening a bank account, applying for tax-exempt status, and filing required forms with the IRS.
| Form | Fee | Filing Method |
|---|---|---|
|
Form SS-4 (Application for Employer Identification Number (EIN)) |
Free |
Online via IRS EIN Assistant |
Hold Your Organizational Meeting and Adopt Bylaws
After incorporation, your nonprofit must hold its initial organizational meeting to establish governance and ensure legal compliance.
Make sure the following points are addressed during the meeting
- Approve the bylaws - These outline how your nonprofit will operate (e.g., meetings, voting, officer roles).
- Elect governing bodies - Typically includes President, Secretary, and Treasurer.
- Adopt policies - Such as a conflict-of-interest policy, required for 501(c)(3) status.
- Authorize filings - Approve resolutions to apply for IRS and state tax exemptions..
Note: Document all decisions in meeting minutes, signed by the secretary.
How to apply for tax exemption and solicitation in North Carolina?
Meeting both exemption and solicitation requirements ensures your nonprofit can operate legally while also building trust with donors and the public. With these approvals in place, your organization is ready to focus on its activities.
Federal tax exemption
To obtain federal state-exempt status, you must submit an application to the IRS. Organizations seeking tax exemption from the IRS must use one of the following forms.
- Form 1023: For Section 501(c)(3) organizations with gross receipts over $50,000 or total assets over $250,000.
- Form 1023-EZ: Also applies to Section 501(c)(3) organizations–typically smaller nonprofits with gross receipts of $50,000 or less and assets under $250,000.
- Form 1024 or 1024-A: Organizations seeking tax-exemption under IRS sections other than 501(c)(3).
| Form | Due date | Fee | Filing Method |
|---|---|---|---|
|
IRS Form 1023 or 1023-EZ (For Section 501(c)(3) organizations) |
Within 27 months of forming the organization. |
Varies from $275 to $600 |
Online via Pay.gov |
|
IRS Form 1024 or 1024-A (For other organizations) |
State tax exemption
If your nonprofit has federal tax-exempt status, it is automatically exempt from North Carolina income tax. There is no need to submit a separate application to the state of North Carolina.
Charitable Organization Registration & Renewal Application
Before you can solicit donations in North Carolina, you must register with the Secretary of State, Charitable Solicitation Licensing Division. Most nonprofits are required to file an Initial Charitable Solicitation License Application (CSL) at least 30 days prior to soliciting contributions.
Renewal:
After obtaining the initial Charitable Solicitation License (Form CSL), nonprofits must renew it each year.
- The renewal is due 4.5 months after the close of the organization’s fiscal year (for example, if the fiscal year ends on December 31, the renewal is due by May 15).
- If your nonprofit has filed for an IRS Form 990 extension, you may also request an extension for your North Carolina renewal.
Filing Methods
- Online: Submit via the NC Secretary of State online portal
- Mail: Send the completed form to the NC Department of the Secretary of State
Charitable Solicitation Licensing Section
Post Office Box 29622
Raleigh, North Carolina 27626-0622
| Form | Type of application | Due date | Fee | Filing Method |
|---|---|---|---|---|
|
Charitable Solicitation License |
Initial Application |
Before beginning any solicitation activities |
The fee is based on your nonprofit’s contributions from the previous fiscal year. |
Mail and Online |
|
Renewal Application |
30 days prior to the expiration of the current license |
What are the annual tax filing requirements for nonprofits in North Carolina?
Nonprofits in North Carolina must comply with both federal and state filing requirements to maintain their tax-exempt status and remain in good standing. Here's an overview of the key filing obligations:
Federal tax filing (IRS)
Even though your nonprofit may be exempt from paying federal income taxes under Section 501(c)(3), it still has annual filing requirements with the IRS:
-
Forms: The organization must file
990 series forms annually to stay compliant.
- Form 990-N: For smaller organizations with gross receipts $50,000 or less.
- Form 990-EZ: For organizations with gross receipts under $200,000 and total assets under $500,000
- Form 990: For organizations with gross receipts ≥ $200,000 and total assets ≥ $500,000.
- Form 990-PF: For private foundations.
- Form 990-T: For organizations with any unrelated business income (UBI) of $1,000 or more.
- Due Date: The return is due on the 15th day of the 5th month after the fiscal year ends (for example, May 15 for a December 31 year-end).
- Filing Method: The IRS mandates e-filing for these forms.
North Carolina State Tax Filing
While North Carolina does not require a separate annual state income tax return for nonprofit organizations that are federally exempt, there are other important filings:
-
Form CD-405 (NC Corporate Income Tax Return) with the North Carolina Attorney General
- All registered charitable organizations must file Form CD-405 (NC Corporate Income Tax Return) each year, along with supporting financial documents.
- Required if your organization has unrelated business income subject to North Carolina income tax.
-
Due date
- The NC-990-T generally follows the same due date as the federal Form 990-T.
-
Filing methods
- Online: Submit electronically via the North Carolina Department of Revenue.
- Mail: Send the completed form to the North Carolina Department of Revenue.
North Carolina Department of Revenue
P.O. Box 25000
Raleigh, NC 27640-0640
Ready to e-file the 990 Form with the IRS?
File with confidence–you are backed by the Tax990 Commitment.
Frequently Asked Questions
Do North Carolina nonprofits pay state income tax?
If your nonprofit has federal tax-exempt status, it is automatically exempt from NC corporate income tax.
However, UBI is still taxable and reported on CD-405.
Do I need to register before soliciting donations in NC?
Yes. Most nonprofits must file an Initial Charitable Solicitation License Application (Form CO-1) with the NC Secretary of State before fundraising.
What is the annual renewal requirement for charitable solicitation?
- File Form CSL-101 (Charitable Solicitation Renewal).
- Due Date: 15th day of the 5th month after your fiscal year ends (same as IRS Form 990).
- Filing can be done online or by mail.
What are the fees for charitable solicitation registration/renewal?
| Contributions Received | Filing Fee |
|---|---|
|
Less than $5,000
|
No fee
|
|
$5,000 – < $100,000
|
$50
|
|
$100,000 – < $200,000
|
$100
|
|
$200,000 or more
|
$200
|
Where do I file North Carolina nonprofit forms?
- Solicitation License (CO-1, CSL-101): NC Secretary of State, Charitable Solicitation Licensing Division → NC SOS Charities Portal
- UBI Tax Return (CD-405): NC Department of Revenue → NC DOR – Corporate Income Tax
When are filings due?
- IRS Form 990 series: 15th day of the 5th month after the fiscal year end.
- NC CSL-101 (renewal): Same as IRS Form 990 due date.
- NC CD-405 (UBI): Same as IRS Form 990-T due date (15th day of 5th month after year-end).
Do North Carolina nonprofits need bylaws and a board of directors?
Yes. NC requires at least one director, but to qualify for 501(c)(3) status, you need at least three directors. Bylaws are not filed with the state but must be adopted and kept in your records.