Forming a Non-profit Corporation Archives - Charity Lawyer Blog

Governance

Who Owns a Nonprofit Corporation?

Let’s be clear about one thing. No one owns a nonprofit corporation.[1]

While there is no outright ownership, there is control. One of the fundamental questions I ask when forming a new nonprofit corporation is how board members will be selected. This is a key question because those who hold the power to select board members retain the ultimate authority over the corporation.

The possibilities are limited by the nonprofit corporation statute in the state where the corporation is domiciled.

January 17, 2022 2 Comments

Starting a nonprofit

Taking Over An Existing Nonprofit

Often prospective clients call us wanting to know whether we know of any dormant nonprofits that are going out of business that they could take over. The idea is that taking over an existing entity avoids the hassle and expense of incorporation, creating a governance structure and obtaining tax-exempt status for a brand new entity. Presumably, a new board of directors would be substituted in place of the old board and new officers would be elected.

November 8, 2021 No Comments

Starting a nonprofit

15 Steps to Building Better Nonprofit Bylaws

Nonprofit bylaws govern the internal operations of the organization. Too many nonprofits make the mistake of ignoring their bylaws. In reality, the bylaws don’t matter

July 22, 2019 No Comments

Nonprofit Tax

Accepting Donations Prior to Exemption

Newly formed charities often encounter a chicken and egg problem. They wish to begin their operations before they receive formal approval of their tax-exempt status but they can’t attract funding until they receive their federal 501(c)(3) determination.

August 12, 2016 No Comments

Starting a nonprofit

Nonprofits and Affiliated Entities

There are many reasons nonprofit organizations find it in their mutual best interest to work together to deliver services.

April 21, 2015 No Comments

Starting a nonprofit

DIY Nonprofit Law – Top Five Mistakes

The state form does not include the tax provisions that the IRS requires tax-exempt organizations to have. Would be founders that file using the state’s form Articles of Incorporation without including an attachment with the appropriate tax provisions will end up with a taxable nonprofit – a result almost no one intends.

June 27, 2014 No Comments

When to Start a Nonprofit

We are used to hearing lots of folks – including yours truly – complain about the “nonprofit birth control” problem in this country. While it is true that too many nonprofits are formed for the wrong reasons – there are also many good reasons to form a new nonprofit. The trick is to learn to tell the difference.

December 11, 2013 No Comments

Starting a nonprofit

Entity Selection for Nonprofits

A major advantage nonprofit corporations have over other forms of charitable entities is if a nonprofit corporation is properly managed and operated, it can provide a greater degree of personal liability protection to its directors and officers.

July 25, 2013 No Comments

Starting a nonprofit

Forming a 501(c)(3) Booster Club

Section 501(c)(3) of the Internal Revenue Code allows for tax exemption for organizations organized and operated to foster national or international amateur sports competition so long as no part of the net earnings inure to the benefit of any private shareholder or individual. A parent run booster club must be organized so that it benefits the entire class of athletes or participants and does not benefit certain individuals over others.

January 17, 2012 No Comments

IRS

PTIN: Ensuring your Tax Preparer is Registered with the IRS

Charities should be aware that it is now illegal for anyone to receive compensation for preparing a return for someone else if they have not obtained a PTIN from the IRS first; a paid preparer who is not registered with the IRS is perpetrating fraud. If a charity chooses to work with an unregistered paid preparer, it opens itself up to IRS scrutiny and, possibly, denial of tax exemption plus additional attorneys’ fees to resolve any issues arising from the initial filing. Charities also need to keep in mind that the organization, regardless of whether or not a paid preparer was used, is ultimately responsible for the information in it’s exemption application.

January 10, 2012 No Comments

Forming a Non-profit Corporation

Who Owns a Nonprofit Corporation?

Taking Over An Existing Nonprofit

15 Steps to Building Better Nonprofit Bylaws

Accepting Donations Prior to Exemption

Nonprofits and Affiliated Entities

DIY Nonprofit Law – Top Five Mistakes

When to Start a Nonprofit

Entity Selection for Nonprofits

Forming a 501(c)(3) Booster Club

PTIN: Ensuring your Tax Preparer is Registered with the IRS

How to Keep your Non-Profit Compliant in All 50 States

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How to Start a Non-Profit Organization