What is a nonprofit corporation?
A nonprofit corporation, as opposed to a for-profit (profit) corporation, is formed to carry out services for the benefit of the general public, including those with a charitable, educational, religious, literary or scientific purpose. Nonprofit (tax-exempt) status is a designation assigned by the Internal Revenue Service (IRS). Further information regarding nonprofit designation can be obtained from the IRS website at: www.irs.gov.
A nonprofit corporation is formed for purposes other than generating a profit and no part of the organization’s income is distributed to its directors or officers. Examples of common nonprofit corporations are churches, schools, charities, museums, hospitals, volunteer organizations, homeless shelters and civic associations. Nonprofit corporations are formed to carry out a charitable, educational, religious, literary, or scientific purpose. The most common federal tax exemption for nonprofits comes from Section 501(c)(3) of the Internal Revenue Code, which is why nonprofits are sometimes called 501(c)(3) corporations. Contact us at 800-818-6082, 302-636-5440 or info@corporate.com with any questions. Return to top • What steps need to be taken to form a nonprofit corporation? Filing nonprofit articles of incorporation with the proper state agency is the first step. Your articles must contain the required clauses to make sure that they will qualify for tax-exempt status. You can incorpor
This is a corporation which is formed with the purpose of benefiting the public in some religious, scientific, educational or charitable way. Because of this charitable purpose, most jurisdictions do not require these corporations to pay income taxes on monies it earns. In addition, nonprofit corporations may achieve tax exempt status for charitable contributions by obtaining what is known as 501(c)(3) status. Please consult your attorney or accountant for more specifics and advice on whether this entity is the one for you to form.
A nonprofit corporation is a corporation whose principal purpose is public benefit and not for producing a profit. A nonprofit corporation may not distribute income to benefit its officers and/or directors. More importantly, a nonprofit corporation is not an ordinary business and should not be used as an alternative form for a business with the primary purpose of generating a profit.
A nonprofit corporation is a corporation formed for purposes other than generating a profit and in which no part of the organization’s income is distributed to its directors or officers. Nonprofit corporations are formed pursuant to state law, often under the Revised Model Non-Profit Corporation Act(1986). A nonprofit corporation can be a church or church association, school, charity, medical provider, legal aid society, volunteer services organization, professional association, research institute, museum, or in some cases a sports association. Nonprofit corporations must apply for tax-exempt status at both the federal and state level.
