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LEARNING CENTER

Nonprofit

Glossary

Nonprofit Corporation

A corporation organized for a non-business purpose.  It can be a charitable reason, n organization like a fraternity, business association or homeowners association. The key is there is no profit motive but members need some protection.

Public Benefit Nonprofit

The corporation is set up to benefit the public or charity. No personal gain and usually can file for 501(c) 3 exemption with the IRS.

Mutual Benefit Nonprofit

The corporation is set up for other than religious, civic league or social welfare purposes and planning to obtain exempt status.

Common Interest Development

A community apartment project (residential), a condominium project, a planned development or a stock cooperative.

Salary

You can get paid a salary even if it’s nonprofit.

Disinterested Board

The Board of Directors of the nonprofit should not be related or carrying on the roles of the nonprofit.

501 C 3

Is a section of the Internal Revenue Code. Entities that are charitable, religious, scientific, testing for public safety, educational, literary or to foster national or international amateur sports competition or for the prevention of cruelty to children or animals (26 U.S.C. 501 (c ) 3.

Exemption with IRS

In order to obtain a tax exemption with the Internal Revenue Service you must file and receive such approval from the IRS. This makes your revenue exempt from taxes but you must be approved and follow IRS guidelines.

You have questions, we have answers.

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