How Do You Become A Non-Profit Entity?
A non-profit entity is a legal means for a group of people to conduct religious, charitable, educational, literary, scientific, or other publicly beneficial work. Non-profit entities can charge for services and pay their employees and staff; however, they do not generate a profit beyond these expenses. Non-profit entities may have members, but they do not have shareholders. If a non-profit entity meets certain qualifications and applies for U.S. Internal Revenue Service recognition, then it may become tax-exempt, and the income it generates will not be subject to income taxation. In many instances, donations to an IRS-recognized tax-exempt organization is a tax-deductible contribution for the donor, which enhances the non-profit entity’s ability to raise funds to carry out its public mission. Establish Firm Groundwork for Your Non-Profit Entity’s Success Step 1 Create a clear statement of what you want your entity to accomplish. Focus on specific, measurable actions. Instead of “help t
