All that is required to form a local transit advocacy group with the Wisconsin Transit Riders Alliance is two people and a contact name and email address. It could stand alone or be a subgroup of another organization. Immediate benefits include the possibility of having a no-cost area on our website (a third or fourth level domain URL and web host privileges (often costing $100+/yr.), a special email address for your group, and/or being the local element of a larger 501(c)(3) network that can accept tax deductible donations.

As the group grows over time and for it to be recognized for other purposes, it may add one or more of the following features:

1. Mission statement – a phrase or sentence summarizing what and why the group is. For example, the mission statement of the Madison Area Bus Advocates is to engage in research, education, partnership, and advocacy with the goals of increasing bus ridership, expanding bus service, and improving the bus system as an efficient, clean, convenient, and affordable means of travel in the greater Madison area.
2. Set of Principles or Goals – A Mission Statement is generally one sentence long whereas a group might find it best to outline a short set of goals involving a number of sentences. The Milwaukee Transit Riders Union has a longer statement with seven goals.
3. Constitution or set of by-laws – Further organization usually entails laying out a set of basic rules for how the organization operates. If the ultimate intention is to make the group eligible for membership in other associations or achieve special non-profit tax status, it may develop a set of by-laws that includes specific clauses. A good example is the set of by-laws developed by the La Crosse Area Transit Advocates. Although time-consuming and tedious, the long-term benefits of a good set of by-laws are immense. And although some organizations may have a declaration, constitution and a set of bylaws, it is usually sufficient to have only one of them.
4. Logo or identity symbol. WTRA’s logo is on the header of this web page. It is an easy and potentially catchy way to convey identity or a sense of being.
5. Bank account – Most organizations find themselves in need of funds, if for only the most elemental functions. And often, the best way to keep track of those funds is through a bank account in the organization’s name. That way, an organization’s financial officer can separate organizational finances from personal ones. There is no standard procedure for opening such an account for civic organizations at present but having an account may be required for eligibility for certain funding, including funding through IRS 501(c)(3) status.
6. EIN or Employer Identification Number – Even when an organization is solely comprised of unpaid volunteers, entities such as the IRS require an organization to have this tax identification. Find out more about getting an EIN here.
7. Incorporation in the State of Wisconsin Although the IRS does not require subordinate entities of a larger organization to be incorporated in their own right, the state of Wisconsin accords special legal status to an incorporated group. Nonprofit corporations can be sued — but their members and directors are generally protected from personal liability, meaning that their own money, houses, cars, or other property isn’t at risk.
8. Conflict of Interest Policy – To be eligible for certain types of donations, grants or benefits, an organization must often demonstrate that its policies are not influenced by the potential monetary interests of any voting member. The IRS offers a template that was followed by the WTRA.
9. Nondiscrimination Policy – To be eligible for certain types of donations, grants or benefits, an organization must often have a nondiscrimination statement or policy. WTRA has a simple policy that can be used as an example.
10. Assume Special 501(c)(3) tax status as a chapter of WTRA – As an umbrella organization, it is theoretically possible for chapters to benefit from WTRA’s 501(c)(3) status. They can become eligible for grants and other donations requiring 501(c)(3) status without having to pay the application fee of $300 or $850 or filling out the tedious application form. (Fuller discussions of the issue are in IRS publications 557 and 4573.) The benefit to the IRS is that processing is much simpler because the umbrella organization is responsible for ensuring that the subordinate organization follows regulations. Those regulations include:
    1. Affirmation that the group is a local chapter (subject to WTRA’s Board of Directors). Both the WTRA and the local chapter need to confirm Chapter status for the IRS. The Chapter does not need separate legal status (incorporation) with the state.
    2. A constitution or set of bylaws, and both financial and nonfinancial records (invoices, receipts, meeting Minutes e.g.).
    3. An EIN or Employer Identification Number.
    4. The same accounting period as WTRA. WTRA’s accounting year is the calendar year (Jan. 1 – Dec. 31).
    5. A public group, not a private foundation.

    The reason this is theoretical at the moment is that filing for a group exemption requires paperwork that WTRA does not now have the staff to fulfill. Hopefully it will in the future.

11. Special 501(c)(3) tax status independent of WTRA A group must fulfill many of the same requirements as enumerated in #10. Please refer to IRS publication 557 or f1023i for detail.

Although geared toward the formation of a neighborhood association, the Neighborhoods and Planning Office of Springfield, Missouri’s Department of Planning and Development has produced a very informative and helpful guide on forming a successful civic organization.

Last updated October 1, 2023