The legal frame for non-profit organization comprises of :
- State Laws: related to formation, fund raising, employment & volunteering, state-taxation
- Federal laws: related to employment & volunteering
- IRS Laws: related to taxation, tax exemption, governance and accountability
- Local/ County laws : related to leasing of office space and day to day operations.
Click on the links for details of each of these laws.
Conclusion
The legal framework for non-profit organizations in U.S.A can best be called as evolving.
Single-state operation is subject to pretty streamlined laws, they get very scary if the organization operates on a multi -state level.
The legal framework becomes further exhaustive if a non-profit organization hires employees.
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I am a member of a Non-Profit Homeowners Association. The Directors want to invest our capital in the purchase of a lot in the non profit HOA development at a county tax sale. Is this legal since they may realize a profit when it is sold? Thanks for your answer