Why form a separate corporation to support a TBR Institution?
There may be a variety of reasons why a TBR Institution might want to form a tax-exempt nonprofit corporation (foundation) to help support the educational or research mission of the Institution. If the foundation is being formed to solicit charitable contributions, some potential donors may condition their gift upon proof that the organization has received formal notification of its tax-exempt status from the IRS. Also, as a separate legal entity from the TBR and the State of Tennessee, a foundation would not be subject to the same rules and regulations (for example, with respect to contracting) as the Institution is. The foundation might therefore be able to operate in a more flexible manner. What’s the process for a TBR Institution to form a tax-exempt nonprofit corporation in Tennessee? In summary, the process is characterized by the following steps: a. Prepare a corporate charter, consistent with the requirements of the Tennessee Nonprofit Corporation Act in general, and specifical
