How to Limit personal liability

Limiting of personal liability is cited as one of the greatest advanatges of incorporating a non profit orgnization.  This may be true to a large extent however incorporation is a costly affair – in terms of the expenses involved, documents to be maintained, compliances to be undertaken, hiring of qualified staff and being ready for […]

Essential elements of a by law

The by law is a vital piece of document for managing the functioning of a non profit organization. The following  aspects of an organization’s by laws need to be looked into when drafting them at the time of incorporation of a non profit organization – A) Number of  Board members – The by law should […]

Where to Incorporate

Incorporation (both ‘for-profit’ and ‘non-profit’) is a subject of state laws. While the general principles and rules remain same throughout the states, there are some vital differences. For instance,  there are differences in the application process , the membership requirements, the filing fee and few other norms. The difference is more pronounced in the state […]

Naming a non profit organization

Once it has been decided to start a non profit organization , the members need to decide and reserve a name for the non profit organization. A good name should be indicative of the activities proposed to be undertaken by the organization. It should also be easy to understand and must have a high recall […]

Exceptions to the limited liability clause

One of the most important benefit of Incorporation is that, its protects the individual members from being held personally liable for the the liabilities of the corporation. However in a few situations, Individuals involved with an incorporated nonprofit organization may be held personally liable for the liabilities of the organization. It is therefore imperative for […]