You're building something that matters, and the right legal foundation can help you grow your impact.
For smaller "micro" nonprofits (typically under $50,000 in annual budget), one of the most important early steps is earning federal and state tax-exempt status. We walk emerging nonprofits through the entire process, from documentation to IRS approval.
Our Nonprofit Launch Grant Program makes that process more accessible by awarding quarterly grants for pro bono legal services. If you're stretching limited resources while trying to invest more in your mission, welcome. We're here for you.
Who We Welcome Into This Program
We invite organizations that are:
- Deeply Connected to Community – responding to community-identified needs in Maryland, D.C., or Virginia, grounded in the lived experiences of those most affected.
- Built for Collective Good – committed to starting and running a nonprofit to advance justice, equity, and resilience.
- Ready for the Next Step – eligible to apply for federal IRS tax-exempt status as a smaller organization or “micro nonprofit” that typically has a budget under $50,000 annually.
- Led with Accountability – beyond the founder, there is a small team of supporters who will serve as board members and help guide the organization’s work
- Prepared to Invest in Your Mission – you’ve identified how to cover approximately $600 in required state and IRS filing fees
Does this describe your organization? If so, invite you to tell us about your work through our short grant application.
What the Grant Includes
If you are awarded a Nazareth Bonifacino Law Nonprofit Launch Grant, we will provide you the following services and deliverables pro bono:
- Drafting the Articles of Organization for the correct jurisdiction
- Drafting the By-Laws, Conflict of Interest Policy, and Organizational Resolution
- Applying for a federal tax identification number
- Registering a trade name or “doing business as” name, if needed
- Preparation and filing of the IRS Form 1023 EZ and facilitating the tax-exempt process
- Advice on how to register for tax-exempt status in your state jurisdiction
- Advice on how to maintain the organization so that you stay in “good standing”
- Advice on additional steps you may need to take based on your circumstances
Your organization will be responsible for all IRS and state incorporation fees of approximately $600.
What to know before you apply for a grant
Q: Why does federal tax exemption matter?
A: Tax-exempt nonprofits do not pay federal income tax, and your supporters can make tax-deductible donations, helping you grow your impact.
Q: What small organizations can use the IRS Form 1023-EZ?
A: The IRS’s short and simple Form 1023-EZ application helps small nonprofits become officially recognized as exempt from federal taxes. If your nonprofit is just getting started, expects to stay under $50,000 in yearly revenue, and has less than $250,000 in assets, you may qualify.
Q: Do we automatically get state tax exemption once we’re approved by the IRS?
A: Not always. While IRS approval gives you federal tax-exempt status, Maryland, the District of Columbia, and Virginia all require separate applications to recognize your nonprofit as tax-exempt from certain state taxes.
Q: Why does state tax exemption matter?
A: It helps your organization stretch resources further so you can invest more directly in your mission and community. You might qualify to save money on sales and use tax for purchases and services, real property taxes, or state income and franchise taxes.
Q: What are bylaws, and why do they matter?
A: Bylaws are your nonprofit’s “rules of the road.” They outline how decisions are made, how leaders are chosen, and how the organization stays accountable. Having bylaws builds trust with your community, funders, and regulators by showing that your nonprofit is guided by fairness and transparency.
Q: What is a conflict of interest policy?
A: A conflict of interest policy is a safeguard that ensures board members and leaders put the organization’s mission first. It requires people to disclose when personal interests could influence decisions, and it sets clear steps for handling those situations.
Q: Why are bylaws and a conflict of interest policy important for our nonprofit’s success?
A: Together, bylaws and a conflict of interest policy protect your nonprofit’s integrity. They help prevent misunderstandings, strengthen decision-making, and demonstrate to donors, partners, and the IRS that your organization is committed to ethical and responsible leadership. By creating clear rules and ethical safeguards, your nonprofit shows that it values fairness, accountability, and the voices of the community it serves. This builds confidence that your work is rooted in justice and collective good.
Questions? We're here.
If you have questions about the program, the application process, or whether this might be the right fit for your organization, we'd love to hear from you. Reach out anytime through our contact form.