If your business already has a philanthropic vision, then making the transition to nonprofit status may be a wise move. It’s not as simple as applying for tax-exempt status with the IRS, though. You’ll need to carefully plan your transition, taking great care to complete all the necessary federal, state, and regional requirements.
Start With Your Mission
Before you make the move, you’ll need to decide on an overall mission. A nonprofit organization doesn’t exist to generate profits for owners or shareholders—the main objective is its charitable mission.
Your business may already have certain aspects that qualify as charitable activities. Use this as a starting point, and build your new nonprofit organization around it. You may still be able to use your old company’s name, but the fundamental purpose of your new organization needs to change so that it is centered on a charitable mission.