Membership provision

Step 5 of 5 My organization will: have membership provision not have membership provision. A word about nonprofit organization structure. A typical non profit organization, has a board which looks after all the governance. The board members are either elected by outgoing board or by the members of the organization (if the organization allows for […]

Organization structure

Step 4 of 5 I would like to : Start an ‘unincorporated’ nonprofit organization. Start an ‘incorporated’ nonprofit organization. What is the difference between the two ? Very simply put, An Unincorporated organization does not register itself with the state authorities and is not liable to comply with the reporting requirements of the state. An […]

Federal and state tax exemption

Step 3 of 5 The proposed nonprofit organization: Is likely to apply for obtaining Tax exempt status with the federal and/or state authorities Will not likely apply for tax exemption at any stage Side note: A tax exempt organization is also called a 501(c) (3) tax exempt organization. ( that’s the IRS section under which […]

IRS category of organization

Step 2 of 5 Deciding the type/category of organization The proposed organization would best be described as: A Public charitable organization A Mutual benefit organization A Private foundation A Religious organization Why is it important to know this ? Classifying of organizations as ‘public charity’, ‘mutual benefit’ or a ‘religious organization’ is a legal requirement […]