Articles of Incorporation and Bylaws of a Non Profit Organization

A nonprofit is a non profit organization that promotes a shared goal, or social cause. It has federal income tax-exempt status through the Internal Revenue Service. Non profit organizations include charitable foundations as well as most colleges and universities, houses and churches, and research institutions. For those who have just about any questions concerning where by and the best way to work with Salvation Army Donation Center, keyword 2 you want to link for can e-mail us at the web-page.

Generally, nonprofits have a religious, charitable, scientific, public-safety-oriented, or educational focus. They are also known as 501(c)(3) organizations, depending on the subsection of the tax code’s Section 501 that provides for their tax-free status.

The IRS lists more than two dozen types of tax-exempt nonprofits that exist for a variety of purposes including feeding please click the next page homeless, managing an association of businesses and preaching the gospel. Nonprofits cannot have the sole purpose of benefiting donors and founders, but they must serve the mission of helping people.

When creating Articles of Incorporation and Bylaws to your new nonprofit, there are some important points you should remember. These articles describe your nonprofit’s purpose, structure, and governance.

1. Your Name

Your nonprofit’s name must be unique, and it cannot be used in any other state. It’s important to pick a name that’s not already taken by someone else in your state, or anywhere in the world.

2. The Board Members

For nonprofit corporations, the IRS and most states require at least three board members. These board members must be able vote on all decisions and should have full names.

3. Your Bylaws

The bylaws govern your nonprofit corporation. These rules can be derived from your state’s laws or the Articles of Incorporation. Your nonprofit’s Bylaws are an integral part of its operation. They should be carefully drafted before being approved by your board of directors.

4. Your Mission

Nonprofits must serve the public interest of the organization, not the founders and donors. Museums, for instance, wouldn’t be able pay for new equipment or buildings if they didn’t serve the community.

5. Your Staff

Nonprofits must have employees and must pay them. They must be qualified to do their job according to the organization’s Bylaws as well as the laws of your country.

6. Your Mission and Fundraising

Donations to nonprofits are often used for program services that further the organization’s purpose, but they can also be spent on administrative costs that do not directly relate to program services. A nonprofit might spend money to hire a bookkeeper that can help them keep their tax exempt status.

7. The Founders’ Compensation

For the 501(c),(3) tax exclusion to apply, a founder must be able and able to earn a reasonable income. A founder can choose to be paid a salary that meets the requirements and may also be eligible for a stock option. You probably have any sort of concerns pertaining to where and ways to utilize Salvation Army Houston, you could call us at our own webpage.