You Have Access To Public And Private Donations

Once incorporated, most charities go on to apply for nonprofit designation from the IRS. As a 501(c)(3) nonprofit, you can receive grants and donations. Foundations, only give grants to 501(c)(3) organizations.

Individual donors to your nonprofit corporation can claim personal federal and state income tax deductions when they itemize deductions. although fewer people do this under the most recent tax laws Bequests may also be exempt from federal estate taxes.

Your are Protected From Personal Liability

One of the most significant advantages of incorporation has to do with protecting members of your organization from personal liability. Board members, officers, and employees of your organization receive protection from liability for corporate debts or lawsuits. Creditors can only go after your organization's corporate assets, not the personal assets of the people who manage, work for, or volunteer for your nonprofit.

Corporate Structure

Forming a nonprofit corporation is not simple. But the preparation forces clarity about mission, operating rules, and procedures for decision making. It's essential for a nonprofit, whose board members may hold opposing ideas, to have clear-cut rules about delegation of authority and how to get things done. Having all of these principles in the articles of incorporation and bylaws makes running the organization much easier.

Hidden Advantages

Other advantages of incorporation include exemptions from county real and personal property taxes, lower postal rates on third-class bulk mailing, cheaper advertising rates, free radio, and television public service announcements (PSAs), and more—depending on your activities.

It is a big step but we can help you through the entire process. Start today by clicking here.