A corporation is created and regulated by state law. It is a legal entity separate from the people who own, control or manage. State enterprise and federal tax laws and state, view the corporation as a separate entity that can enter into contracts, incur debts, and pay taxes. Advantages of forming a nonprofit include tax exemptions, the protection of personal property and the fact that donations to a 501 (c) (3) non-profit may be claimed as tax deductions.
Food for Thought – things to consider and steps to follow
Create a strategic business plan. This report provides a basis for developing a detailed plan to help track the direction, progress and growth of your nonprofit. The plan can be used as a checklist to help with outcomes and milestones to ensure they meet their goals and objectives.
Develop a mission statement. This is a clear and concise description of reason (business purpose) nonprofit of its existence and services provided.
Create a vision statement. This is more powerful and should briefly describe how it will meet its goals and objectives.
Identify your goals and objectives. Scheme activities, programs, projects and / or services to support its mission. List your goals. They are supporting their goals and action items are measurable results. Objectives show what will be accomplished when you meet your goals.
Identify the major strategies and resources. Make a list of resources, including assets in cash, furniture, equipment, staff and volunteers, their knowledge and skills. Be realistic – include elements that still need. Create a list of strengths, weaknesses and opportunities and identify potential obstacles to business success.
Choose a business name. The name must meet the legal requirements of the office of the state of corporate presentation, usually the Secretary of State of the Nation. Contact them for guidelines.
Submit a certificate or articles of incorporation. The state office can provide corporate filing articles of incorporation for nonprofit – either a blank form to complete or a sample to guide you in creating your own. Forms are submitted either with the Secretary of State or the Office of the Attorney General and are specific to each state. There is a small fee.
Apply for state and federal tax exemptions. After the filing office has turned its articles, submit an application to the IRS and the State Board of Equalization for federal and state exemptions for which you are eligible.
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