What is a nonprofit corporation?

A. A nonprofit corporation (whether incorporated or as an unincorporated association) is an organization in which no part of the income is allowed to be distributed to its members, directors, or officers. The corporation is not prohibited from making a profit; the prohibition is that profits can not be distributed to the members, officers, or directors of the organization. Nonprofit corporations are formed pursuant to state law. Nonprofit corporations must apply for tax exempt status, both at the federal and state level. A nonprofit corporation formed under IRS code Section 501(c)(3) may be formed and organized to operate for some religious, educational, literary, charitable, or scientific purpose. It must be noted that a nonprofit corporation may also be formed for other purposes pursuant to various other sections of the IRS code.

A nonprofit corporation (whether incorporated or as an unincorporated association) is an organization in which no part of the income is distributable to its members, directors, or officers. The corporation is not prohibited from making a profit; the prohibition is the distribution of any profits to members, officers or directors of the organization. Nonprofit corporations are formed pursuant to state law. Nonprofit corporations must apply for exempt status, both at the federal and state level.  more

A nonprofit corporation is simply a corporation that is organized and operated for one of the nonprofit purposes recognized under state corporation law and federal and state tax statutes. "Nonprofit" does not mean that you cannot make a profit; as long as your corporation is organized and operated for a recognized non-profit purpose (for example, an educational or charitable purpose), your corporation can make a profit from its activities. However, nonprofit corporations must meet special requirements to obtain the special advantages associated with nonprofit status. There are three types of California nonprofit corporations: public benefit, religious and mutual benefit. The formation and servicing of nonprofit corporations requires a great deal of time, and can be rather costly. While Burgee & Abramoff does not generally provide these services, if you are interested in forming a nonprofit corporation, we can refer you to attorneys who are specialists in this field.  more

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.  more

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.  more

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.  more

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 ...  more

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.  more

A nonprofit corporation is created by filing articles of incorporation with the secretary of state in accordance with state law. A nonprofit corporation may be created for any lawful purposes, which purposes must be fully stated in the articles of incorporation. Not all nonprofit corporations are entitled to exemption from state or federal taxes.  more

A nonprofit corporation is created by filing a Certificate of Formation with the Secretary of State. See Form 202 (Word, PDF). A “nonprofit corporation” is a corporation no part of the income of which is distributable to members, directors, or officers. A nonprofit corporation may be created for any lawful purpose, which purpose must be stated in its Certificate of Formation.  more