Nonprofit

/Nonprofit
Nonprofit 2019-02-19T11:14:38+00:00

If your corporation has been formed to operate for religious, scientific, educational or charitable purposes and benefits the public, a specific group of individuals or the membership of the nonprofit, then your corporation qualifies for tax-exempt status as a Nonprofit corporation.

As part of the most advanced system of nonprofits in the world, a nonprofit corporation brings numerous benefits no matter if you are able to fund it yourself or attract other peoples’ generosity for your cause.

While public charities and private foundations are both 501(c)(3) organizations, the first are publicly funded and the later are funded usually by a corporation, individuals or family, therefore from private funds.

If you are planning to form a civic league, a group to endorse a political candidate or a homeowner’s association you need to know that these are just three of the most common groups that do not qualify as 501(c)(3) organizations.

The first step is to file for nonprofit incorporation with the state. After that, you have to file an application with the IRS and if it is approved you will qualify as an 501(c)(3)organization.

There are real and obvious benefits of incorporating your organization: credibility, improved public image increasing the chances of receiving funds and liability protection for officers and directors of your organization. For most of the cases the process is easy and fast and it helps you understand better what are the requirements defined by law for your business.