Companies that support charitable causes while not collecting profit are some of the most important because they work to make the world a better place. But starting, running, and organizing one of these companies is often more difficult and involved than you would imagine. In order to make a difference, you need to follow the rules and carefully document everything you do.
More often than not, problems with non-profit companies boil down to a lack of knowledge about what to do – knowledge that Jess Birken or a dedicated attorney could provide. By working with a Minnesota non-profit and tax-exempt organization lawyer, you could give yourself and your dream organization a better chance of succeeding.
What Makes a Non-Profit Unique?
Of course, the biggest difference between a for-profit and a non-profit company is right there in the name: one provides goods or services with goal of making money, while the other reinvests earned money back into the community. However, there are several other key differences that are worth considering when deciding whether a non-profit is right for you.
For example, the way that tax-exempt companies obtain initial funding is also rather unique. Instead of collecting investments from venture capitalists, non-profits usually focus on acquiring government grants, sponsorships, and donations of both money and time.
The way a non-profit is run is also different. These organizations tend to revolve around a large Board of Directors and collective decision making. In addition, non-profit businesses are usually eligible for special tax exemptions, especially when they partner with a skilled Minnesota lawyer. If you want to learn more about whether a non-profit would be right for your goals, our practice is here to help.
How to Start a Non-Profit or Tax-Exempt Company
While every non-profit in Minnesota is unique, founders usually have to follow the same set of procedures before they can begin accepting donations. First, the founding member must choose a name for their organization that follows all the relevant rules and is not already taken. Then, this person needs to nominate a registered agent to effectively act as an intermediary between the organization and the state. This intermediary needs to be a Minnesota resident.
After this, the next step is to form a Board of Directors consisting of, at minimum, a President, a Treasurer, a secretary, and at least three other directors. At their first official meeting, the Board must establish bylaws for the organization and adopt a Conflict-of-Interest policy. The goal of this policy is to make sure that all of the tax-exempt organization’s decisions benefit the business, instead of individual members.
After that, the new non-profit must draft and submit paperwork known as the Articles of Incorporation. These documents should explain the exact purpose of the company, outline how assets and money will be utilized, and establish how the organization will be dissolved, if necessary.
Our firm does not expect that you know how to accomplish all this on your own, so you should not hesitate to start your non-profit or tax-exempt organization with the help of a dedicated Minnesota attorney.
Contact a Minnesota Non-Profit and Tax-Exempt Organization Attorney Today
When starting a non-profit, there are many things you need to learn in order to be successful. For example, these businesses are subject to unique rules that do not apply to other organizations. However, they are a powerful way you can help the community and assist people in need.
A Minnesota non-profit and tax-exempt organization lawyer could boost your chances of successfully establishing your new business, so do not hesitate to reach out to Jess Birken today and get started.
Birken Law Office – Law firm serving nonprofits organizations, and foundations – Birken Law