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| 1 | +# Confidant Nonprofit Formation Checklist (Maryland, US) |
| 2 | + |
| 3 | +Action plan to form a 501(c)(3) nonprofit for Confidant. Do steps 1–6 now (no payment); pause at step 7 until filing funds are available, then again at step 9 until IRS application funds are available. |
| 4 | + |
| 5 | +--- |
| 6 | + |
| 7 | +## Do Now (No Payment) |
| 8 | + |
| 9 | +### 1. Lock in the name and check it’s free |
| 10 | +- Decide the exact legal name (e.g. **Confidant Foundation, Inc.**). |
| 11 | +- Search [Maryland SDAT](https://dat.maryland.gov/Pages/default.aspx) and [IRS EO Select Check](https://apps.irs.gov/app/eos/) to ensure the name isn’t already in use. |
| 12 | +- **Cost:** Free. |
| 13 | + |
| 14 | +### 2. Draft your mission (one paragraph) |
| 15 | +- Write one clear paragraph: who you serve, what you do (e.g. develop and provide Confidant as a free, privacy-first mental health companion), and that it’s for charitable/educational purposes. |
| 16 | +- You’ll paste this into Articles, Form 1023, and fundraising materials. |
| 17 | +- **Cost:** Free. |
| 18 | + |
| 19 | +### 3. Recruit / confirm your initial board (at least 3) |
| 20 | +- Identify 3 people (unpaid is fine) who can serve as directors, with no conflict of interest (e.g. not the only developer who’d get paid by the org later without board approval). |
| 21 | +- Get verbal or email agreement. You’ll need names and addresses for state and IRS forms. |
| 22 | +- **Cost:** Free. |
| 23 | + |
| 24 | +### 4. Draft bylaws |
| 25 | +- Use a 501(c)(3) template (e.g. from [Maryland Nonprofits](https://www.mdnonprofit.org/), Nolo, or a lawyer’s sample). Adapt: name, mission, number of directors, how officers are chosen, meetings, conflict of interest, amendment process, dissolution (assets to another 501(c)(3) or government). |
| 26 | +- **Cost:** Free if you do it yourself. |
| 27 | + |
| 28 | +### 5. Prepare Articles of Incorporation text |
| 29 | +- Use Maryland SDAT’s form or instructions for a **nonstock nonprofit**. |
| 30 | +- Include: name, purpose (your mission paragraph), statement that it’s nonstock, and the **required dissolution clause** (assets to another 501(c)(3) or governmental body). |
| 31 | +- Don’t file yet; just have the document ready. |
| 32 | +- **Cost:** Free until you actually file. |
| 33 | + |
| 34 | +### 6. Apply for an EIN (Employer Identification Number) |
| 35 | +- Online at [IRS EIN](https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online). |
| 36 | +- Apply as “corporation” / “other nonprofit” and use the name and address you’ll use for the corporation (can be a director’s address or registered agent). |
| 37 | +- **Cost:** Free. |
| 38 | + |
| 39 | +--- |
| 40 | + |
| 41 | +## Pause Here: First Fees |
| 42 | + |
| 43 | +### 7. File Articles of Incorporation in Maryland |
| 44 | +- File with [Maryland SDAT](https://dat.maryland.gov/Pages/default.aspx) (online or paper). |
| 45 | +- **Fee:** ~\$170 (confirm current amount on SDAT’s site). |
| 46 | +- **Pause** until you have this amount; then file. |
| 47 | +- After filing, you’ll get a **charter** (certificate); keep the original. |
| 48 | + |
| 49 | +### 8. Hold organizational meeting and adopt bylaws |
| 50 | +- Hold the first board meeting (in person or by consent); adopt bylaws, elect officers, authorize applying for 501(c)(3), adopt conflict-of-interest policy. |
| 51 | +- Sign and date minutes; keep in a binder. |
| 52 | +- **Cost:** No state fee; only your time. |
| 53 | + |
| 54 | +### 9. Apply for 501(c)(3) with the IRS |
| 55 | +- File [Form 1023](https://www.irs.gov/charities-non-profits/applying-for-tax-exempt-status) or 1023-EZ (if you qualify). |
| 56 | +- **Fee:** \$600 (1023-EZ) or \$750 (1023) — confirm current amount on IRS.gov. |
| 57 | +- **Pause** until you have this; then submit. |
| 58 | +- Can be done right after the organizational meeting. |
| 59 | + |
| 60 | +### 10. Maryland charitable registration (when you’re ready to fundraise) |
| 61 | +- Register with the [Maryland Secretary of State](https://sos.maryland.gov/Charity/Pages/default.aspx) before soliciting donations. |
| 62 | +- **Fee:** Check the site for current registration fee. |
| 63 | +- **Pause** at this step until you’re ready to solicit and have the fee. |
| 64 | + |
| 65 | +### 11. Maryland state tax exemption |
| 66 | +- After you have an IRS 501(c)(3) determination letter, apply for state income (and if needed, sales) tax exemption with the [Comptroller of Maryland](https://comptroller.maryland.gov/). |
| 67 | +- Check Comptroller instructions for any fee. |
| 68 | + |
| 69 | +--- |
| 70 | + |
| 71 | +## Summary: Do Today vs. Pause at Payment |
| 72 | + |
| 73 | +| Step | Action | Cost | |
| 74 | +|------|--------|------| |
| 75 | +| 1 | Name search (MD + IRS) | Free | |
| 76 | +| 2 | Write mission paragraph | Free | |
| 77 | +| 3 | Confirm 3 board members | Free | |
| 78 | +| 4 | Draft bylaws | Free | |
| 79 | +| 5 | Draft Articles (don’t file yet) | Free | |
| 80 | +| 6 | Get EIN from IRS | Free | |
| 81 | +| **PAUSE** | | | |
| 82 | +| 7 | File Articles in Maryland | ~\$170 | |
| 83 | +| 8 | Organizational meeting, adopt bylaws | Free | |
| 84 | +| 9 | File 1023 / 1023-EZ | \$600 or \$750 | |
| 85 | +| 10 | MD charitable registration (when fundraising) | Check SOS | |
| 86 | +| 11 | MD tax exemption (after IRS approval) | Check Comptroller | |
| 87 | + |
| 88 | +--- |
| 89 | + |
| 90 | +## Helpful links |
| 91 | + |
| 92 | +- **Maryland SDAT (formation):** https://dat.maryland.gov/Pages/default.aspx |
| 93 | +- **Maryland Secretary of State (charitable registration):** https://sos.maryland.gov/Charity/Pages/default.aspx |
| 94 | +- **IRS 501(c)(3) application:** https://www.irs.gov/charities-non-profits/applying-for-tax-exempt-status |
| 95 | +- **IRS EIN:** https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online |
| 96 | +- **IRS EO Select Check (name search):** https://apps.irs.gov/app/eos/ |
| 97 | +- **Maryland Nonprofits:** https://www.mdnonprofit.org/ |
| 98 | + |
| 99 | +--- |
| 100 | + |
| 101 | +*This checklist is for planning only. Consult a lawyer and/or CPA for your specific situation.* |
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