By the Templateez Team · Licensed Attorney · June 2026

Non-Profit Formation Intake Forms: What Attorneys Need to Capture at Client Intake

A client walks in and says they want to start a nonprofit. They have a cause they care about, maybe a board member or two lined up, and a vague sense that they need 501(c)(3) status. That is roughly where the conversation begins for most attorneys who handle nonprofit formation work. The gap between that opening statement and a filed set of articles of incorporation, a completed Form 1023, and a functioning governance structure is enormous — and the intake is where you either bridge that gap systematically or spend the next six months chasing missing information one email at a time.

Nonprofit formation intake is more complex than standard corporate formation because you are not just creating an entity. You are creating an entity that must satisfy state incorporation requirements, IRS exemption criteria, state tax exemption rules, and charitable solicitation registration obligations — each with its own filing, its own timeline, and its own set of facts you need from the client. A thorough non-profit formation intake form captures all of those facts at the start, before the engagement letter is signed, so nothing falls through the cracks once the work begins.

Organization basics: the foundation of every filing

Every nonprofit formation starts with the same core identity questions, but each one carries implications that a for-profit formation does not:

• Proposed organization name — this is not just a branding decision. You need to run a name availability check with the Secretary of State before filing. Many states also require the name to include specific designations like "Inc.," "Corporation," or "Foundation." If the client wants a name that is already taken or confusingly similar to an existing entity, you need to know that before you draft the articles, not after.
• State of incorporation — most nonprofits incorporate in their home state, but not always. The state determines the incorporation statute, the minimum number of directors, the filing fees, and any state-specific requirements for nonprofit articles. Delaware and New York have meaningfully different nonprofit corporation laws.
• Principal office address — the IRS requires this on Form 1023. It is also the address that appears on state filings and the public record. If the organization does not yet have office space, you need to know whether the founder plans to use a home address, a registered agent address, or a virtual office. Each has implications for privacy and for state nexus determinations.
• Mission statement — even if the client has only a concept, you need to capture it in writing at intake. The mission statement drives the articles' purpose clause, the Form 1023 narrative, and every grant application the organization will ever submit. A client who says "we want to help kids" needs to arrive at something like "providing after-school STEM education to underserved youth in Essex County, New Jersey." That refinement process starts at intake.
• Exempt purpose category — charitable, educational, religious, scientific, literary, testing for public safety, fostering amateur sports competition, or prevention of cruelty to children or animals. The IRS recognizes specific exempt purpose categories under Section 501(c)(3), and the client's purpose must fit cleanly into at least one. Intake is where you identify which category applies and whether the client's actual planned activities align with that category's requirements.
• NTEE code — the National Taxonomy of Exempt Entities is the IRS classification system for nonprofits. While not required for the application, identifying the correct NTEE code at intake helps you benchmark the organization against similar entities, anticipate IRS scrutiny areas, and advise on governance best practices specific to that subsector.
• Similar existing organizations — due diligence on this point serves two purposes. First, if a nearly identical organization already exists in the same geography, the IRS may question whether the new entity serves a distinct purpose. Second, identifying similar organizations helps the client think clearly about differentiation, collaboration opportunities, and whether formation is even the right path versus joining or partnering with an existing entity.

Founders and governance: who runs the organization

Nonprofit governance is not optional window dressing. It is a legal requirement, an IRS scrutiny point, and the single most common source of problems in young nonprofits. Your intake needs to capture the governance structure in detail:

• Incorporator(s) — name and address for each person who will sign the articles of incorporation. In many states, a single incorporator is sufficient, and it can be the attorney. But the client may want the founder or a board member named as incorporator for symbolic reasons. Clarify this at intake.
• Initial board of directors — most states require a minimum of three directors for nonprofit corporations. You need the full name, address, and proposed role (chair, vice chair, member) for each. The IRS also looks at board composition when evaluating the exemption application — a board composed entirely of family members raises questions about whether the organization operates for private benefit.
• Officers — at minimum, president, secretary, and treasurer. Some states require that these be separate individuals. Your intake should capture who is filling each role and confirm that the proposed officers meet any state-specific eligibility requirements.
• Founder's role — this is one of the most important intake questions and one that clients often have not thought through. Will the founder serve as executive director (a paid staff position), board chair (a governance role), or both? Dual roles create conflict-of-interest issues that the IRS examines closely. A founder who expects to be both the highest-paid employee and the chair of the board that sets their salary needs to understand the governance complications before you start drafting documents.
• Conflict of interest — will the founder or any board member receive compensation from the organization? Are there related-party transactions planned (leasing space from a board member, contracting with a founder's other business)? The IRS requires a conflict of interest policy as part of Form 1023, and these situations must be disclosed. Better to surface them at intake than discover them during the application narrative.
• Board composition goals — does the client want independent directors, community representatives, or subject matter experts? Funders and grantmakers increasingly look at board diversity and independence. Capturing these goals at intake lets you draft bylaws with nomination and composition provisions that support the organization's long-term fundraising strategy.
• Advisory board — some founders plan to have an advisory board that is separate from the governing board. Advisory boards have no legal authority, but clients sometimes confuse the two. Clarify the distinction at intake and document whether an advisory board is planned.

Tax exemption: the core of the engagement

For most clients, tax-exempt status is the entire reason they are forming a nonprofit rather than an LLC or corporation. The intake must establish the exemption pathway clearly:

• IRS exemption type — 501(c)(3) is the most common, but it is not the only option. Social welfare organizations file under 501(c)(4). Trade associations and business leagues use 501(c)(6). Social clubs use 501(c)(7). The exemption type determines what the organization can and cannot do — particularly around lobbying, political activity, and the deductibility of donations. Many clients assume 501(c)(3) without understanding the alternatives, and intake is where you confirm the right classification.
• Public charity vs. private foundation — this is a critical distinction that clients almost never understand. A 501(c)(3) is either a public charity or a private foundation, and the default is private foundation. Private foundations face excise taxes, mandatory payout requirements, restrictions on self-dealing, and limits on business holdings. Most clients want public charity status, which means they need to pass a public support test. Your intake must establish which classification the client is targeting and whether their planned funding model supports it.
• Public charity test — if the organization will be a public charity, which test applies? Section 509(a)(1) organizations receive a substantial part of their support from public sources (the one-third support test). Section 509(a)(2) organizations receive no more than one-third of support from investment income and more than one-third from contributions and program revenue. Section 509(a)(3) supporting organizations operate in connection with one or more existing public charities. Each has different structural and operational requirements. Intake is where you identify which test the client can realistically meet based on their projected revenue sources.
• Form 1023 vs. 1023-EZ eligibility — the streamlined Form 1023-EZ is available to organizations that project gross receipts of $50,000 or less in each of the next three years and total assets of $250,000 or less. The 1023-EZ is faster, simpler, and cheaper. Your intake should capture revenue and asset projections early so you can advise on eligibility. Note that certain organizations — churches, schools, hospitals, and organizations with projected income over the threshold — must use the full Form 1023 regardless.
• State tax exemption — federal exemption does not automatically confer state tax exemption. Most states require a separate application for exemption from state income tax, and some have their own eligibility criteria. Your intake should note the states where the organization will operate so you can identify all required state filings.
• Sales tax exemption — state-specific and often requires a separate application. Not all nonprofits qualify, and the exemption typically applies only to purchases made for the organization's exempt purpose, not to sales by the organization. If the client plans to sell merchandise, run events with admission fees, or operate a thrift store, sales tax treatment needs to be addressed at intake.
• Property tax exemption — if the organization will own or lease real property, property tax exemption may be available but requires a separate application to the county or municipality. Eligibility often depends on how the property is used, not just who owns it.
• Fiscal sponsorship — if the organization needs to accept tax-deductible donations before Form 1023 approval, a fiscal sponsorship arrangement with an existing 501(c)(3) is an interim option. Capture whether the client has already identified a fiscal sponsor, is interested in finding one, or plans to wait for their own exemption before beginning fundraising.

Financial projections: the IRS wants numbers

Form 1023 requires detailed financial data for the organization's first three years. Clients rarely have this ready at the first meeting, but intake is where you establish the framework and set expectations for what they need to provide:

• Projected revenue, Years 1 through 3 — broken down by source: individual donations, foundation grants, government grants, corporate sponsorships, program service revenue, membership dues, special events, investment income. The breakdown matters because it determines the public support test calculation. An organization that projects 90% of its revenue from a single government grant has a different public charity analysis than one projecting diverse individual donations.
• Projected expenses, Years 1 through 3 — broken down by category: program expenses, management and general (administrative), and fundraising. The IRS looks at the ratio of program expenses to total expenses as one indicator of whether the organization is actually operating for its exempt purpose. A nonprofit that projects spending 80% of its budget on fundraising and 10% on programs will face scrutiny.
• Funding sources — individual donors, foundation grants, government grants, corporate sponsors, earned revenue from programs, membership fees. Each source has different implications. Foundation grants often come with reporting requirements. Government grants trigger single audit requirements above certain thresholds. Earned revenue may generate unrelated business income tax if it is not substantially related to the exempt purpose.
• Fundraising plan — how does the organization plan to raise money? Annual appeals, grant writing, events, online campaigns, major donor cultivation? This is not just a business question — it determines charitable solicitation registration requirements, which vary by state and often must be in place before the organization begins soliciting donations.
• Paid staff vs. volunteer-only — will the organization have paid employees from the start, or will it operate with volunteers initially? If paid staff, how many and at what cost? Payroll obligations (withholding, FICA, unemployment insurance, workers' compensation) begin immediately upon hiring, regardless of exempt status.
• Proposed compensation — if the client plans to hire an executive director or other key employees, the proposed salary and benefits must be reasonable and comparable to similar positions at similar organizations. The IRS scrutinizes compensation as part of the exemption application, and unreasonable compensation can jeopardize exempt status or trigger intermediate sanctions. Capture proposed compensation figures at intake so you can advise on reasonableness before the client makes commitments they cannot change.
• Startup funding — who funds operations between incorporation and the receipt of the IRS determination letter? The founder personally? A fiscal sponsor? A bridge loan? A founding grant? This interim funding question is practical and immediate — the organization will have filing fees, legal fees, and potentially office costs before it can legally solicit tax-deductible donations.

Governance documents: what you need to draft

Nonprofit formation involves substantially more documentation than for-profit entity formation. Your intake should identify the client's needs and preferences for each required document:

• Articles of incorporation — state-specific requirements vary, but all nonprofit articles must include the purpose clause, the dissolution clause (assets distributed to another 501(c)(3) upon dissolution), and the prohibition on private inurement. Some states require specific language that tracks the IRS requirements for exemption. Your intake should confirm the state and capture any client preferences for optional provisions.
• Bylaws — the operating rules of the organization. Intake should cover the client's preferences on voting procedures, quorum requirements (what percentage of directors must be present to conduct business), term lengths for directors and officers, committee structure (executive committee, finance committee, governance committee), and amendment procedures. These are not boilerplate decisions — a three-year director term with staggered classes produces very different governance dynamics than a one-year term with annual elections.
• Conflict of interest policy — the IRS requires this as part of Form 1023 and asks whether the organization has adopted a policy. The IRS provides a sample policy in the Form 1023 instructions, but many attorneys customize it to address the specific conflicts identified during intake (founder compensation, related-party leases, board member business relationships).
• Compensation policy — documentation of how the organization determines reasonable compensation. This typically involves comparability data from similar organizations. The IRS looks for evidence that the board followed a deliberate process, not that the founder simply picked a number.
• Document retention and destruction policy — required by Sarbanes-Oxley for nonprofits (yes, SOX applies to nonprofits for document retention and whistleblower provisions). Your intake should ask whether the client has any existing document management systems or preferences.
• Whistleblower policy — also a SOX requirement for nonprofits. The IRS asks about it on Form 1023. Most organizations adopt a standard policy, but intake should confirm whether there are any specific concerns or existing procedures the client wants incorporated.
• Gift acceptance policy — determines what types of gifts the organization will accept. Cash and publicly traded securities are straightforward. Real estate, closely held stock, vehicles, artwork, cryptocurrency, and restricted or designated gifts all raise valuation, liability, and administrative issues. If the client anticipates receiving non-cash gifts, the gift acceptance policy needs to address them.
• Investment policy — if the organization will hold invested assets (endowment, reserves, donor-advised funds), an investment policy governs how those assets are managed. Not all new nonprofits need one immediately, but intake should ask about anticipated investment activity.

Compliance and registration: what comes after formation

Formation is not the end of the engagement. The compliance obligations that begin at incorporation are often more complex than the formation itself, and your intake needs to capture enough information to advise the client on what lies ahead:

• State charitable solicitation registration — most states require nonprofits to register before soliciting donations from residents of that state. If the organization plans to fundraise nationally — even through a website with a donate button — it may need to register in dozens of states. Your intake should capture the organization's planned geographic scope of fundraising so you can advise on registration requirements.
• Annual reporting — once exempt, the organization must file an annual information return with the IRS. Form 990 (gross receipts over $200,000 or assets over $500,000), Form 990-EZ (gross receipts under $200,000 and assets under $500,000), or Form 990-N (gross receipts normally $50,000 or less). Failure to file for three consecutive years results in automatic revocation of exempt status. Most states also require an annual report. Intake should set the client's expectations about these ongoing obligations.
• Unrelated business income — if any planned activity generates revenue that is not substantially related to the exempt purpose, it may be subject to unrelated business income tax (UBIT). Common examples include advertising revenue, rental income from debt-financed property, and revenue from regularly carried on trade or business activities. Your intake should capture all planned revenue-generating activities so you can flag potential UBIT issues.
• Lobbying limits — 501(c)(3) organizations can engage in limited lobbying but not unlimited lobbying. The default "substantial part" test is vague and subjective. The Section 501(h) election provides a clearer, expenditure-based safe harbor. If the client's mission involves policy advocacy, intake is where you discuss the distinction and recommend the h-election if appropriate.
• Political campaign activity — this is an absolute prohibition for 501(c)(3) organizations. No endorsements, no campaign contributions, no statements for or against candidates. If the client's mission touches politics in any way, the intake must document the boundary between permissible issue advocacy and prohibited campaign intervention. Violation of this prohibition can result in loss of exempt status.
• State employment law — if the organization plans to hire employees, state employment law obligations apply from the first hire: wage and hour compliance, anti-discrimination, workers' compensation, unemployment insurance. Nonprofits are not exempt from employment law, and many new nonprofit founders are surprised by this. Intake should ask about hiring plans and timeline.
• Insurance — directors and officers (D&O) liability insurance protects board members from personal liability. General liability covers premises and operations. Professional liability (errors and omissions) applies if the organization provides professional services. Your intake should capture whether the client has obtained quotes, has existing coverage through a fiscal sponsor, or needs guidance on insurance procurement.

Why nonprofit intake is different from every other formation

Standard business formation intake captures the "who, what, and where" of an entity. Nonprofit formation intake captures all of that plus the regulatory architecture that governs the entity for the rest of its existence. The IRS exemption application is not a one-page form — it is a detailed narrative with financial projections, governance documentation, activity descriptions, and conflict-of-interest disclosures. Every piece of information on that application traces back to something you should have captured at intake.

An attorney who takes a nonprofit formation engagement with nothing more than the founder's name and a one-sentence mission will spend the next three to six months pulling information out of the client in piecemeal emails. An attorney who uses a structured intake form that covers organization basics, governance, tax exemption strategy, financial projections, governance documents, and ongoing compliance walks out of the first meeting with substantially everything needed to draft the articles, prepare the bylaws, and begin the Form 1023 — or to identify, immediately, the areas where the client needs to do more homework before the engagement can proceed efficiently.

For attorneys handling corporate entity formation more broadly, the business formation intake guide covers the foundational fields that apply across LLCs, corporations, and partnerships — many of which overlap with nonprofit formation but without the tax-exemption and governance complexity covered here.

If you handle nonprofit formation alongside other legal work, the Legal Bundle includes non-profit formation alongside 37 other legal practice area intake sets, each with profession-specific fields.