Nonprofit status begins at the state level and requires registration as a charitable or nonprofit entity. This process may be online and requires an annual fee with annual renewal. The state will issue a Charter document, used to register with the Internal Revenue Service (IRS), to receive an Employer Identification Number (EIN). Use the EIN to open a bank account for the nonprofit. The bank may provide a discount for a nonprofit organization. The EIN is also used to register with the State Department of Labor for payroll purposes.

Apply for a state sales tax exemption certificate from the State Department of Revenue.

In addition to state registration as a charitable or nonprofit entity, registration may be required for charitable solicitation. Some states require registration for all organizations that solicit money for charitable purposes. Registration is usually annually and requires a fee, submission of a financial report of the entity’s most recent fiscal year as well as information about the entity, its personnel, and its purposes.  States with county governments may require registration as a nonprofit with the county.

Some business models may require applying for a state/county business license. This may be covered under the pharmacy license.

RegistrationLevelFeeAnnual FeeAnnual Renewal
Register as charitable or nonprofit entity; Receive Charter Document StateYesYesYes
Register with IRS using state Charter Document;Receive EIN FederalNo if done by selfNoNo
Use EIN to open bank accountLocalDiscount for nonprofit status?Varies by bankVaries by bank
Register with state Dept. of Labor using EINStateVaries by stateVaries by stateVaries by state
Apply for state sales tax exemptionStateVaries by stateVaries by stateVaries by state
Register for charitable solicitation if required; required documents may vary by stateStateYesYesYes
Register as nonprofit in county if requiredCountyYesYesYes
Register for business/pharmacy licenseState/ County/ CityYesYesYes