Two or more people can form a chapter of the Wisconsin Transit Riders Alliance. It can stand alone or be the subgroup of another organization.The chapter needs a contact name and email address (which we can give you). It does not need to be separately incorporated, have a bank account or hold an Employer Identification Number (EIN). Immediate benefits include a seat on our Board, eligibility for 501(c)(3) tax deductible donations, an area on our website (a subdomain), an email address, and membership in an organized network.

If the group grows over time and wants more recognition in its own right for legal and other reasons, 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 – While a Mission Statement is generally one sentence long, a group might prefer listing a short set of principles or goals involving a number of sentences. The former Milwaukee Transit Riders Union had 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 a legal entity unto itself, 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 benefit of a good set of by-laws is 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 but having a separate account may be required for eligibility for certain funding, including direct funding that uses IRS 501(c)(3) status. (WTRA can be the direct recipient otherwise.)
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 are not 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 currently have the staff to fulfill. We have so far been able to deal less formally when an issue has arisen. But a more formal arrangement can be put in place 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 produced a very informative and helpful guide on forming a successful civic organization.

Last updated April 23, 2026