Summary: How To Form A Nonprofit Organization A non-profit organization (abbreviated as NPO, also known as a not-for-profit organization) is an organization that does not distribute its excess profits to owners or shareholders, but instead uses them to help pursue its goals. Non-profit organizations are established for a variety of purposes, most commonly charitable, educational or religious. Some common examples are schools, hospitals, houses of worship, museums, fraternal organizations, food banks, homeless shelters, trade unions and other volunteer organizations. Non-profit organizations must be organized as either trusts, associations or corporations. Non-Profit Corporations Forming your non-profit organization as a corporation, instead of a trust or an association, will offers you all the same benefits as a for-profit corporation. The most significant benefit is limited liability protection for the officers, directors, and shareholders of the corporation, so that their bank accounts, homes, and other personal assets cannot be used to satisfy the debts and liabilities of the non-profit corporation. The main advantages of a non-profit corporation over a for-profit company are exemptions from State and Federal income tax and property tax (although the exemptions must be applied for separately). There also some other, smaller benefits, such as reduced rates at the U.S. Postal Service. Unlike for-profit corporations, non-profits cannot distribute any profits to their members, contribute money to political campaigns, or engage in political lobbying, except in very limited circumstances. Forming a Non-Profit Organization Forming a non-profit organization is a multi-step process. https://www.myusacorporation.eu/non-profit.html
