What is a nonprofit corporation and what are its characteristics?
A nonprofit corporation is a corporation in which no part of the income or profit is distributable to its members, directors or officers, except under limited circumstances. Iowa Code 504.1301-1302. Typical characteristics of a nonprofit corporation: • The entity is designated as a “nonprofit” when organized. • Profits or assets may not be divided among corporate members, officers or directors in the manner of corporate share dividends. • The entity may lawfully pursue such purposes as are permitted for such organization under state law.
