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GENERAL INFORMATION
A nonprofit organization (abbreviated "NPO", also "not-for-profit") is a legally constituted organization whose objective is to support or engage in activities of public or private interest without any commercial or monetary profit. NPOs are active in the environment, humanitarian aid, animal protection, education, the arts, social issues, charities, health care, politics, religion, research, sports or other endeavors.
BENEFITS
Protection From Personal Liability
One of the major benefits of incorporating any entity is the limited liability the corporate form brings. Generally, exposure to liability claims for a corporation, whether nonprofit or for-profit, is limited to the extent of the corporation's assets, and the personal assets of the corporation's owners and directors are not at risk.
Achieving Tax-Exempt Status
An important distinction for nonprofit corporations is whether they qualify for and become a tax-exempt nonprofit. Tax exemption status is above and beyond nonprofit corporation status. Nonprofit corporations seeking tax-exempt status must apply to the Internal Revenue Service (and, in some states, to the state taxing authority). Typically, this status is granted under the provisions of section 501(c)(3) of the Internal Revenue Code.
Tax-Deductible Donations
The biggest benefit to achieving tax-exempt 501(c)(3) status is that, under many circumstances, a donation to such an organization can be deducted from the donor's income tax. Such an enticement for potential donors is a major factor in helping
Obtaining Grants
For many grant-giving agencies and foundations, tax-exempt, nonprofit corporation status is required before a grant application will be considered. A foundation's own tax status can be affected were they to give grants to a for-profit organization.
Exemption From Income Taxes
Another important benefit to tax-exempt status is that a tax-exempt corporation is not required to pay income taxes on the profit from its operations.
Exemption From Property Taxes
Often, tax-exempt nonprofit corporations are exempt from property taxes. The county assessor or tax collector's office usually determines eligibility, pursuant to law, for real property tax-exemption qualification.
DRAWBACKS
PRICE LIST
Prices are included with the State fees.
Non-Profit: $275.00
Non-Profit Plus 501(c)(3): $495.00
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