Forming a charitable or non-profit organization is always a respectable effort, since you are likely hoping to support, grow, or advance the community in a meaningful way. However, actually obtaining your legal status as a non-profit company requires many steps, including proper brainstorming, registering with the IRS, and detailed drafting of documents known as bylaws.
If your organization is in the startup phase and you are looking to obtain status as a nonprofit, a hardworking lawyer like Jess Birken could help with every step. She could advise you as to what it means to incorporate a non-profit, take the lead in drafting bylaws, and submit the necessary paperwork to all relevant government agencies.
How Can You Incorporate your Non-Profit?
Generally speaking, incorporating a non-profit, otherwise known as the process of establishing one of these businesses, requires someone to fill out paperwork to obtain Section 501(c)(3) status from the IRS.
To do this, a potential non-profit founder must first draft documents known as the Articles of Incorporation and file them with the correct agency – usually the Secretary of State’s office. These articles must state the group’s purpose and name any relevant officers, such as the CEO. At this point, the potential non-profit is still required to pay state and federal taxes, but only for a short while longer.
Second, the organization must draft bylaws, which are documents that map out exactly how the potential non-profit will be run. For instance, these drafts usually outline the company’s charitable goals and explain how money will be collected, organized, and spent.
Finally, a non-profit founder must submit the Articles of Incorporation and bylaws to the IRS and pay and relevant filing fees, attaching their paperwork to IRS Form 1023. These documents and applications can be confusing for most people, so a detail-oriented lawyer like Jess Birken could help a founder overcome all the procedural headaches associated with incorporating a non-profit.
The Benefits of Incorporating a Non-Profit
Anyone interested in starting a non-profit should remember that there are many benefits associated with incorporating this kind of company. For instance, having tax-exempt status for your business does mean that you cannot take in funding or offer a salary to your employees. Instead, incorporating a tax-exempt organization means you can do these things while avoiding paying taxes on your profits, which could allow more funding to flow into a community in need.
To be more specific, a non-profit that incorporates under Section 501(c)(3) of the IRS code can usually:
- Accept tax-deductible donations from individuals and companies
- Avoid paying taxes on the intake of funds
- Decrease the potential tax liability of members and officers
- Gain greater credibility among philanthropy organizations
If you are wondering whether the benefits of incorporating a non-profit organization are worth the time, money, and procedural steps, do not hesitate to talk with knowledgeable lawyer Jess Birken during a consultation.
Our Attorneys Could Assist with the Process of Incorporating a Nonprofit
As mentioned, incorporating a non-profit as a tax-exempt organization, while at times challenging, comes with many distinct benefits that could help you achieve your charitable goals. For example, successfully achieving Section 501(c)(3) status allows your group to accept donations, and the donating parties can write off those submissions.
Of course, the process of establishing your new non-profit likely differs depending on your unique situation. Thankfully, our firm is here to answer your questions, help you create a game plan, and resolve any roadblocks that arise along the way. Reach out today to get started.
Birken Law Office – Law firm serving nonprofits organizations, and foundations – Birken Law