How to Start a Nonprofit in Arkansas: A Step-by-Step Guide

Step 2: Appoint incorporators, directors, and a registered agent

You must appoint individuals, or entities, to serve in the following roles within your nonprofit:

• Incorporators. Arkansas requires at least one incorporator to sign and file the articles of incorporation. The incorporator doesn't need to serve as a director.
• Board of directors. Under Arkansas nonprofit corporation law, a nonprofit must have a minimum of three directors. The board is legally obligated to act in the organization's best interest.
• Registered agent. Every Arkansas nonprofit must designate a registered agent with a physical Arkansas street address to receive legal documents and official state correspondence. Having a P.O. box is insufficient. A director or officer can fill this role, or the organization can use a commercial registered agent service.

One person can serve as the sole incorporator, but Arkansas law requires a minimum of three directors, so you will need to recruit at least two additional people before you can legally form and operate an Arkansas nonprofit corporation.

Step 3: File Arkansas nonprofit articles of incorporation

Articles of incorporation are the founding legal document that officially creates your nonprofit corporation in Arkansas. You will need to file them with the Arkansas Secretary of State, Business and Commercial Services Division.

• Online filing fee: $45
• Mail filing fee: $50
• Processing time: Typically 3–5 business days online; mail takes longer

Once approved, your nonprofit corporation legally exists, though it does not yet have the federal tax-exempt status.

Your articles of incorporation must include:

• Organization name
• Registered agent name and Arkansas street address
• Incorporator name(s) and signature(s)
• Statement of purpose
• A statement saying whether or not the organization will have members

While not required for incorporation, there are a few more items that must be included if you want the IRS to approve your 501(c)(3) application.

• Exempt-purpose clause: States that the organization operates exclusively for one or more IRS-recognized exempt purposes (charitable, religious, educational, scientific, etc.)
• Dissolution clause: Specifies that upon dissolution, remaining assets transfer to another 501(c)(3) or to a government entity for a public purpose
• Inurement clause: States that no portion of net earnings will benefit any private individual

Omitting these clauses will cause the IRS to reject your 501(c)(3) application.

Step 4: Draft nonprofit bylaws and a conflict-of-interest policy

Bylaws govern how your organization operates. You don't file them with the state, but if your organization has adopted bylaws, then the IRS reviews them as part of the 501(c)(3) application. Weak governance provisions can delay approval.

Your bylaws should cover the following:

• Organization name and principal office address
• Mission and purpose statement
• Membership provisions, or a clear statement that the organization contains no members
• Board of directors provisions, including number of seats, qualifications, terms, election procedures, and removal process
• Officer roles and responsibilities
• Meeting requirements, including frequency, notice requirements, and quorum
• Voting procedures
• Amendment and dissolution procedures aligned with your articles
• Conflict-of-interest policy

What is a conflict-of-interest policy?

A conflict-of-interest policy establishes procedures for identifying and addressing potential conflicts involving directors, officers, and other key individuals. The IRS asks about conflict-of-interest policies or practices on Form 1023 and encourages organizations to adopt one as a governance best practice, but adopting a conflict-of-interest policy is not itself required to obtain 501(c)(3) status.

A well-designed policy can require interested individuals to disclose relevant financial interests and establish procedures for determining whether a conflict exists and how the organization will handle it.

Step 5: Hold your organizational board meeting

At the first board meeting, directors should take the following actions:

• Adopt the bylaws
• Elect officers
• Ratify the articles of incorporation filing
• Authorize opening a bank account
• Begin maintaining corporate records

Make sure to document everything in written minutes. The IRS may request them, and solid record-keeping demonstrates active governance.

Step 6: Obtain an EIN from the IRS

An employer identification number (EIN) is a nine-digit federal tax ID the IRS assigns to your organization. You need one before opening a bank account, hiring employees, or filing a 501(c)(3) application.

The EIN is free, and you can apply on the IRS website, but your organization must be incorporated first. Once properly filed, the IRS typically generates an EIN immediately. Fax and mail applications take four to five weeks.

Step 7: Apply for federal 501(c)(3) tax-exempt status

Two application forms are available: the Form 1023-EZ and the standard Form 1023. The proper form depends on whether your organization is eligible to use Form 1023-EZ under the IRS Eligibility Worksheet and on the organization's activities, structure, and other circumstances—not simply on its size and assets.

Form 1023-EZ is the streamlined application, which you can file online through pay.gov. Eligibility depends on the IRS Form 1023-EZ Eligibility Worksheet. In addition to the financial thresholds, certain types of organizations and other circumstances make an organization ineligible to use Form 1023-EZ.

• Financial thresholds: The organization generally must have annual gross receipts of $50,000 or less during the applicable period and total assets of $250,000 or less.
• Filing fee: $275
• Estimated processing time: Varies, but typically between two and four weeks

Form 1023 is the standard application, also filed through pay.gov. Form 1023 is generally used by organizations that are required to apply for recognition of 501(c)(3) status but aren't eligible to use Form 1023-EZ. Certain organizations, including churches and some small organizations, aren't required to submit either application, although they may choose to apply for an IRS determination letter.

• Filing fee: $600
• Estimated processing time: Varies, but typically between three and six months, but possibly longer

When approved, the IRS issues a determination letter confirming your 501(c)(3) status. Make sure to keep it with the rest of your documents since you'll need it for grant applications, donor acknowledgment, and the Arkansas state tax exemption application. If you file within 27 months of your incorporation date, the IRS can apply your status retroactively to the date of formation.

Step 8: Apply for Arkansas state tax exemption

IRS approval does not automatically exempt your organization from Arkansas state taxes. You must still apply to the Arkansas DFA using Form AR1023CT for state income tax exemption.

Arkansas sales tax exemption update. Act 1007, passed during the 2025 legislative session, provides a sales tax exemption for sales of certain property to qualifying nonprofits, effective June 1, 2025. Your organization can apply through the Arkansas Taxpayer Access Point (ATAP). Please note that this exemption is not automatic.

Step 9: Register for charitable solicitation with the Arkansas Attorney General

Before soliciting donations from Arkansas residents, including through online fundraising, most nonprofits must register with the Arkansas Secretary of State’s Charities Division. . Here is what is needed to register.

• Form: CR-01 (Charitable Organization Registration Statement)
• Filing fee: None
• Renewal: Charitable organizations generally have a separate annual financial reporting obligation, with the report due no later than 190 days after the organization’s fiscal year end
• Exemptions: Some organizations qualify (e.g., groups soliciting only from their own membership, certain religious organizations), but these exemptions are narrow—confirm eligibility before assuming you qualify

You can be penalized for fundraising before you are approved to solicit donations. Complete this registration before launching any donation campaigns, crowdfunding pages, or grant solicitations directed at Arkansas residents.

How much does it cost to start a nonprofit in Arkansas?

Starting an Arkansas nonprofit costs between $320 and $650 in required government filing fees, depending on whether you file your articles online or by mail and which IRS application form you use. That range covers only mandatory fees and excludes registered agent services, attorney review, or professional formation assistance.