What advantages do nonprofit corporations have over unincorporated associations?
• Tax exempt status. Organizations that meet the requirements of Internal Revenue Code section 501(c)(3) are exempt from federal income tax as charitable organizations. Obtaining tax-exempt status can amount to significant savings. • Grant eligibility. A 501(c)(3) nonprofit is eligible to receive both public and private grants. • Personal asset protection. The responsibility of debts and liabilities of the corporation are not personally held against the officers, directors, trustees or members of the corporation. • Tax-deductible donations. Nonprofit corporations can accept donations and contributions that are tax-deductible to the donor. • Continuity. The corporation’s duration does not depend upon its members. A nonprofit corporation can continue to exist and do business if an owner dies or wishes to sell their interest. • Special postage rates. Nonprofits can apply for and receive a mailing permit that gives them a special reduced nonprofit rate for mailings. This is especially help
Tax exempt status. Organizations that meet the requirements of Internal Revenue Code section 501(c)(3) are exempt from federal income tax as charitable organizations. Obtaining tax-exempt status can amount to significant savings. Grant eligibility. A 501(c)(3) nonprofit is eligible to receive both public and private grants. Personal asset protection. The responsibility of debts and liabilities of the corporation are not personally held against the officers, directors, trustees or members of the corporation. Tax-deductible donations. Nonprofit corporations can accept donations and contributions that are tax-deductible to the donor. Continuity. The corporation’s duration does not depend upon its members. A nonprofit corporation can continue to exist and do business if an owner dies or wishes to sell their interest. Special postage rates. Nonprofits can apply for and receive a mailing permit that gives them a special reduced nonprofit rate for mailings. This is especially helpful for orga
