How to Incorporate a Nonprofit for Make Music Vermont

Why Incorporate?

If your Make Music Vermont chapter is growing and you want to:

• Accept tax-deductible donations
• Apply for grants
• Protect organizers from personal liability

...then incorporating as a nonprofit may make sense.

Step-by-Step Process

1. Hold an Organizational Meeting

Decide who your Directors and Officers will be:

• Vermont requires a minimum of 3 Directors
• Keep the board manageable (you need a majority for meetings)

Required Officer Roles:

Note: Officers can also be Directors. In many states, the President can also serve as Treasurer, as long as the Secretary is a different person.

2. File Certificate of Incorporation

File with the Vermont Secretary of State. The certificate includes:

• Names of initial Directors/Officers
• Corporate address (can use home address or PO Box)
• Charitable purpose — describe your mission (promoting community music, etc.)

Resource: Vermont Secretary of State - Corporations

3. File with the IRS for Tax-Exempt Status

You'll need:

• Certificate of Incorporation
• Bylaws
• Conflict of Interest Policy

Form 1023-EZ (Simplified) — Use if ALL apply:

• Annual gross receipts ≤ $50,000 for last 3 years
• Expected receipts ≤ $50,000 for next 3 years
• Assets < $250,000

4. Vermont Tax Exemption

After IRS approval:

• File for Vermont state tax exemption
• Register to solicit charitable donations in Vermont

Alternative: Fiscal Sponsorship

If you don't want to incorporate (or while waiting for IRS response), you can piggyback off another nonprofit's tax-exempt status.

How It Works

• Find a nonprofit with a similar charitable purpose (music, arts, community)
• Donations go to sponsor, then are allocated to your project
• Sponsor typically charges 5-10% fee

Vermont Options to Explore

• Local community foundations — many Vermont communities have them
• Vermont Arts Council — may have fiscal sponsorship resources
• Fractured Atlas — national arts fiscal sponsor (~5% fee)

Considerations

• Faster than incorporating (can start accepting donations immediately)
• Some funders won't donate to fiscally sponsored projects
• Good for testing whether formal incorporation makes sense

Annual Requirements

Once incorporated, file annually to stay compliant:

Fiscal Year Tip: If your main expenses are for June 21, consider a July 1 – June 30 fiscal year. Annual filings would be due November 15.

Do You Even Need to Incorporate?

For many Make Music Vermont chapters, formal incorporation isn't necessary:

✅ You can organize events without being a nonprofit

✅ Sponsors can support you through in-kind donations

✅ Local partners (libraries, arts councils) often have fiscal infrastructure

Consider incorporating when:

• You're handling significant money ($5,000+)
• You want to apply for grants directly
• You need liability protection
• You want to build a permanent organization