Are you a civic – minded person looking for a nonprofit organization? Or looking for information on how to start up a non-profit organization? We’ve got your back.
Throughout the pages at Civicmind.org, we list out some of the most notable non-profit organizations along with doling out helpful information on the general requirements needed to begin your own. Hopefully, these two elements will combine forces that will inform and inspire in equal measure.
Here is a general definition of non – profits:
A nonprofit organization, or NPO, is an organization that does not distribute its surplus funds to owners / shareholders. Rather, it uses them to help further for self – preservation, expansion and future plans. Non-profits can include charities, trade unions, and public arts organizations. A key difference between a NPO and a for – profit corporation is that a nonprofit does not issue stock or pay dividends, and is not allowed to enrich its directors. Note a distinction, though, nonprofits can still have paid employees and can compensate their directors as long as it is within reasonable bounds.
Note that many government agencies actually meet this NPO definition, but in most cases, they are considered a different kind of organization.
In the US, NPOs are created by incorporating in the state in which they are expected to do business. Just like for – profit corporations, the very act of incorporating creates a legal entity that enables the NPO to be treated as a corporation under law, and it can now enter into business dealings, form contracts, and own property.
Nonprofits can have members, or can opt not to. It can also be an association or members or a trust. The NPO may be controlled by its members, who elect its Board of Directors, Board of Governors or Board of Trustees. NPO can follow a delegate structure that allows for the representation of groups or corporations as members. Or, it may be a non – membership based organization, in which case the board of directors elects its own successors.
Every year there are new additions to the code put out for Non – Profit organizations. it is important that they are in compliance with all additions to the code in order to ensure continued authorization of their non – profit status. It is a very important job so many non – profit organizations decide to maintain a position to deal with issues such as this. The government tax code is no laughing matter and they would be severely put off if their donors decided to spend their tax deductible dollars elsewhere. It has been the case on may occasions that these documents have not been adhered to and the outcome has been disastrous to the non – profit. No need for that.