Nonprofit Help Guides and Resources | Page 3

Nonprofit Help Guides

Should I form a nonprofit or a for-profit corporation?

Often, the choice between entity types is relatively straightforward. Organizations seeking to provide charitable, educational, religious, literary, or scientific services to their communities typically need to obtain nonprofit status in order to become eligible to receive funds from government and private foundations in the form of grants and donat...

How does a nonprofit qualify for grants and tax-deductible donations?

Nonprofits that qualify under section 501(c)(3) of the IRC become exempt from paying federal income taxes. This qualification is also necessary to receive tax-deductible donations and many grants. Although donations received prior to the nonprofit qualifying for tax-exempt status are not tax deductible, they become retroactively deductible once the...

Do I have to file the articles of incorporation in person?

Very few states require that the articles of incorporation be filed in person, and even then, it is only required in a few states for those who wish to expedite the filing time. These days most states accept the articles of incorporation via mail or fax, and many are also now offering online filing portals....

What are meeting minutes?

Meeting minutes are used to record all items discussed and resolutions passed at board meetings. Maintaining these records is much more than a mundane formality. Minutes play an important function in helping the business show how important decisions were made and which members voted for what. Corporations are required to keep these records in order...

How are nonprofit corporations taxed?

Income earned by normal for-profit C corporations is taxed twice: once at the entity level and then again at the personal level when that income gets disbursed to shareholders and employees. However, nonprofit corporations that qualify under section 501(c)(3) of the IRC are exempt from paying federal income tax and are eligible to receive tax-deduct...

What is an EIN and do I need one?

“EIN” stands for Employer Identification Number and is required by the IRS for tax identification purposes for any business with employees as well as businesses falling under a few other categories. Specifically, the IRS requires that a business obtain an EIN if it: has employees; operates as a corporation or partnership; withholds taxes on income o...

Do I need to be a U.S. citizen or resident to start a nonprofit corporation?

The short answer is no; there is no requirement that you be a U.S. citizen or resident to start a nonprofit corporation. In practice, it may be difficult to run a corporation from abroad; however, there is no legal requirement that the incorporators be citizens or maintain residency, and the process for incorporating for foreigners is the same as fo...

What is a nonprofit corporation?

Nonprofit corporations are organized under state law for a "public benefit," meaning for a purpose other than earning profits. They typically aim to benefit the public or specific public groups by providing charitable, educational, religious, literary, or scientific services. Nonprofit corporations range from small local charities to large nationwid...

How does nonprofit taxation differ from other business entities?

Nonprofit corporations that obtain tax-exempt status with the IRS are exempt from paying federal income tax and may also have a number of other tax exemptions available at the state and local levels. The following is a brief overview of how other common business entities are taxed. Sole proprietorships – Profits are taxed once as the sole proprietor...

10 Reasons Why Articles of Incorporation Are Rejected

If you are interested in forming an S corp or C corp, you will not get far without filing articles of incorporation. Sometimes referred to as a corporate charter, this critical document establishes your business as an official corporate entity. Valid articles of incorporation outline essential information such as the company's name, where it is base...