What is a nonprofit organization?

A nonprofit structure helps organizations who are busy helping others by giving them a path to tax-exempt status. It also provides charitable or cause-driven groups an enhanced level of credibility along with limited liability protection for its directors and officers.

What are the advantages of a nonprofit organization?

From gaining increased trust to earning tax exempt status, formalizing your nonprofit can deliver many benefits to you and those you serve.

Increased protection

Registering as a nonprofit can increase protection of personal assets from organizational liabilities.

Your purpose, optimized

Applying for 501(c)(3) tax-exempt status can allow even more of the donations received to be allocated to the organization’s cause.

Empowered fundraising

With a recognized organization structure in place, you’ll inspire confidence in donors and community partners alike.

Nonprofit tax implications for your organization:

If your nonprofit earns 501(c)(3) status at the federal level, this means contributions to the organization become tax deductible and the organization is generally not subject to federal income tax like for-profit businesses. However, the IRS does have specific parameters around the types of purposes or causes that are eligible for this status.

Other considerations

Must file its own tax return with the IRS annually

Must comply with IRS regulations to apply for and maintain tax exempt status, including: ongoing filings, fees and administrative record keeping

Required to appoint corporate officers and maintain a board of directors

Cannot issue stock

Start forming your business in minutes.

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Tell us about your business.

Enter your business info, pick your business type, and fill out our forms in as little as 10 minutes.

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Let us do the work.

Get back to business as we work with the state to file your paperwork with 100% satisfaction guaranteed.

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Get excited!

You’re official! We’ll provide you with your business documents while you change your title to CEO.

Not sure if a nonprofit is for you?

Answer a few quick questions, and our Help Me Choose tool can help you move closer to finding the right business structure fit.

Ready to learn more about business services?

Let’s start saving you time and money with affordable, year-round expertise.

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