There are many types of organizations that are formed all over the world. One of which is the nonprofit corporations. In this article, we are going to be talking about what a nonprofit corporation is, how to incorporate a nonprofit corporation, and the benefits of being a nonprofit organization. We will also be showing you some examples of nonprofit corporations in our Strikingly community and what their purposes are.
What is a Nonprofit Corporation?
A nonprofit corporation is a corporation in which any profit as a result of its operations are not distributed to its employees and/or shareholders but rather to their members, trustees, or officers. Accordingly, it is formed or organized for the following purposes:
Or Other similar purposes, like trade, industry, agricultural and like chambers.
A nonprofit corporation’s way of accumulating profit or revenue may be similar to that of a corporation that is for business or profit but the purpose as to why it was organized makes it different in many aspects. For instance, the organizational structure within the organization is far different than that of profit corporations. Unlike for-profit organizations, nonprofit corporations mostly involve members. Members are the volunteers that join and handle the operations of the corporations and to whom the earnings of the corporation are divided among. Usually, no one member holds more than the other in terms of the benefit received because no one holds a higher power. Among the members, a board of trustees and officers are voted for and elected from - all of which must be volunteers as none of them really receive direct compensation. All the proceeds of any business operations, including any donations or grants received, are distributed among its members or reinvested in another nonprofit corporation.
Nonprofit corporations are also legal entities that are separate in identities as their incorporators which means that the members only have limited liability. Also, following certain procedures, criteria, and their business activity, most are tax-exempt.
How to Incorporate Nonprofit Corporations?
Incorporating a nonprofit corporation is not an easy feat. Much like establishing a for-profit corporation, nonprofit corporations also take much time, money, and paperwork before it comes to life. However, there are fewer steps and requirements to fully incorporate a nonprofit corporation. Below is a step-by-step guide on how to become a nonprofit corporation:
Decide on a specified goal (purpose) and legal structure for your corporation.
It is only right and obvious that the first step of incorporation of a nonprofit corporation is to ascertain that it is truly a legal structure of nonprofit that you wish to accomplish. It is also vital that you must distinguish what your specific charity will be, since most of the nonprofit corporations are for charitable purposes.
Register at the state level as a nonprofit corporation.
Create and submit a board of directors and the articles of incorporation to your state secretary.
Registering at the state level might include a fee. Aside from paying the said fee, it is also simultaneous to the submission of a board of directors, which members of the nonprofit corporation elect to oversee the whole corporation. The articles of incorporation are paperwork that puts into paper details about the nonprofit corporation. This includes the name of the nonprofit corporation, its main purpose, its address, and other basic information. Upon registration, your state can further classify your nonprofit corporation into certain categories of nonprofit corporations. These categories include:
Public benefit corporation whose purpose is to serve the entire community
Mutual benefit corporations whose purpose is to serve a certain group of individuals or members who share a certain interest among them and which don’t usually, but may do so, apply for tax exemptions.
Nonprofit professional corporations are those whose purpose is to provide a certain type of services which are performed by its members who are licensed professionals in respective fields such as accountants, auditors, lawyers, or doctors.
Religious corporation whose purpose is primarily religious and charitable.
Cooperative corporations whose purpose is to help their respective communities. It is usually controlled by the employees or patrons and is appropriate for those with a community-based mindset.
Once your nonprofit corporation qualifies as such, you can move on to the federal level. Here, you can apply for a tax-exempt status, which means that your nonprofit corporation does not have to pay taxes despite its profit, as for-profit corporations usually do. You can do this by applying for a federal tax ID number. Afterwards, you must apply to be recognized as a tax-exempt organization.
Benefits of Nonprofit Corporations
Since nonprofits are completely run by volunteers but still involve a lot of paperwork from its startup until it is already in operation and even upon its closing, it can seem disadvantageous for some people. However, becoming a nonprofit corporation has its benefits.
Their profits are exempt from federal or state taxes.
They have the capacity to apply for grants and receive them.
They can also receive donations from people and other corporations.
They do not need to pay real estate taxes for the building it buys or sells.
The board members of nonprofit corporations only have limited liability, that is, they are not personally liable for the corporation’s debts.
Public service announcements of nonprofits can be aired free on television and radio stations that are willing to accept them.
The Online Presence of Nonprofit Corporations
While nonprofits are not in it for the money or the business, like for-profit corporations are, it is still very important for you to still have an online presence. Because a nonprofit corporation, like yours, relies mostly on donations from other people, making your identity and your purpose known to a lot of people is vital for your survival. In today’s day and age, the best way to do just that is to have a website up and running. A website can hold your information. It can show people what you do and what you want to accomplish. A website can tell your story and the story of all the people that benefit from your nonprofit corporation. Most importantly, a website can hold the contact information of your nonprofit corporation or even act as a donation site for your nonprofit endeavors.
And if you want to do exactly that, Strikingly is the website builder for you. Let’s take a look at some websites of nonprofit corporations that were made with Strikingly.
Gent4Humanity is a nonprofit corporation that was built for charitable purposes. They are based in the heart of Gent Belgium but they offer help wherever they can. Like most websites of nonprofit corporations hoping to gain support, their website features photos and videos of their charitable endeavors. They aim to help whenever they can, mostly focusing on first-aid responses and distribution of food items. Their main focus is on helping refugees across Europe get the assistance and aid they need. They also have their social media and email information on their website and even have a social media feed to feature their recent updates.
This nonprofit corporation’s purpose is to connect people who want to donate to the right causes to support. They help these people find causes that are the right match for them and what they want to do. They allow people to connect with them so they can, in turn, connect them to other nonprofit corporations or organizations. They have a link that leads directly to a Google Sheets file that lists these organizations and their information. “Do more, do good” is their motto. And thanks to Strikingly, they have an avenue to connect to more people.
This nonprofit organization is one that came together for the purpose of their religion. Their purpose is to share the word of Jesus and expand their community. They are striving to essentially help more people build a relationship with Jesus. Their church website has all these information and their contact details so visitors of their website can connect with them and their community. Strikingly houses other similar websites like them and even offers up church website templates to help you start your own.
This website is dedicated to a nonprofit corporation that aims to help parents and children bond over the love of reading books. Started by a Belgo-Canadian Mom, they are now offering up different authors and speakers that aim to inspire love, teach kindness, and ignite the love of reading of little kids all over the world through age-appropriate English books. Their website is dedicated to collecting donations. Their Strikingly website houses all these and the chance to donate to their corporation.
Thanks to Strikingly, all these causes and communities now have an online presence. A home in the online world to reach more people and share their causes with the people who need and want it. With the right template to get you started, that can be you and your nonprofit corporation too! Having a website that people can contact you through does not only help you and your nonprofit causes to thrive and fulfill its purpose, you are also able to help more people.
A website for your nonprofit can be easily made and tailored to your needs with Strikingly. Nonprofit corporations, like the one you are planning to incorporate, do a lot of good for our world. It is truly inspiring that many people are willing to open their hearts, exert their efforts, give their love and support, and share in the cost of the needs of complete strangers who need help. Strikingly aims to assist and accompany you in this journey. Strikingly offers a 25% discount for the first plan payment for nonprofit corporations. Just make sure to contact Strikingly Support, send them your details, and our happiness officers will be especially happy and grateful to assist you. After all, the work that nonprofit corporations do is certainly a good example to follow.