First and foremost, nonprofit incorporation is necessary to obtain 501(c)3 tax-exempt status, which opens the floodgates to accessing the financial resources needed to run a successful nonprofit business and drive your mission forward.
Here are the top 3 benefits of nonprofit incorporation and 501(c)3 tax-exempt status:
1.Qualifying for public or private grant money – Excellent source for funding your mission.
2.Solicit tax-deductible contributions – You’ll be highly attractive to donors as they can write off their gifts on their tax returns.
3.Personal liability protection – Should you find yourself in a lawsuit, incorporation protects members and directors from personal liability, so your money, house, cars,or any other property is not at risk.
How to Incorporate Your Nonprofit Organization
Got it all? Great. Let’s get you incorporated….
1. Draft a Unanimous Consent resolution to authorize officers, activities and general responsibilities. You can get the form on our resource page.
2. File Articles of Incorporation – Some states allow a single incorporator, but if yours doesn’t, then ask a couple of friends to serve on your Board of Directors. This works out well because you’ll need two board members later on when you file for 501(c)3 Tax-Exempt Status with the IRS.
Also, the process of incorporating varies from state to state. Here’s a link to the relevant government agencies in your state.
And, don’t forget, you’ll also need to attach the proper language containing your organization’s Dissolution and Purpose Clause to your Articles of Incorporation before filing, or the IRS will reject your application for 501(c)(3) Tax-Exempt Status. (Not to worry….Yippiekiyay’s online platform handles all these details in a snap!)
And there you have it. A few steps and a few forms. While it seems simple, the process and paperwork can seem daunting…which is why we’ve dialed in all the details.
We’ve got an office full of real, friendly, humans who are happy to answer all of your questions. You’re welcome to book a free consult call here, or you can give us a call at 855-893-3093.
To your mission,
Jacqui Long | Conjuror of Comms & Culture | Yippiekiyay Nonprofit Solutions
To your mission,
Jacqui Long | Yippiekiyay