# How hard is it to set up a non-profit business?
**URL:** https://boards.straightdope.com/t/how-hard-is-it-to-set-up-a-non-profit-business/342287
**Category:** Factual Questions
**Created:** [January 31, 2006, 1:09am UTC](https://boards.straightdope.com/t/how-hard-is-it-to-set-up-a-non-profit-business/342287 "2006-01-31T01:09:06Z")
**Posts on this page:** 2
**Page:** 1
### Author:  [@Ty\_Cobb](https://boards.straightdope.com/u/Ty_Cobb)
#### Post date: [January 31, 2006, 1:09am UTC](https://boards.straightdope.com/t/how-hard-is-it-to-set-up-a-non-profit-business/342287/1 "2006-01-31T01:09:06Z")
I sometimes wonder whether anyone really looks at charities before they get their operating papers.
I’s suppose that they may be allowed to set up before they actually start collecting money and thus providing benefits.
Let’s say you were going to start now to collect money for buying blankets for the next local storm.
How much would you have to prove to get started?
Is it state or federal?
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### Author:  [@Gfactor](https://boards.straightdope.com/u/Gfactor)
#### Post date: [January 31, 2006, 3:18am UTC](https://boards.straightdope.com/t/how-hard-is-it-to-set-up-a-non-profit-business/342287/2 "2006-01-31T03:18:34Z")
Two parts: One state; one federal
First you would have to organize a non-profit corporation under state law. [http://www.nolo.com/article.cfm/ObjectID/A6D25766-61E1-4179-8299F2726E320A5A/catID/CE94A6B3-EFB6-4036-8498D5414328FD73/111/262/FAQ/](http://www.nolo.com/article.cfm/ObjectID/A6D25766-61E1-4179-8299F2726E320A5A/catID/CE94A6B3-EFB6-4036-8498D5414328FD73/111/262/FAQ/)
After that, you would apply for tax exempt status under state and federal law. _Id._; _and see_, [http://www.irs.gov/charities/charitable/article/0,,id=96099,00.html](http://www.irs.gov/charities/charitable/article/0,,id=96099,00.html) \*and \* [http://www.irs.gov/pub/irs-pdf/p557.pdf](http://www.irs.gov/pub/irs-pdf/p557.pdf) (pdf)