Nonprofit

Reasons to incorporate as a nonprofit

Get tax breaks

You're eligible for state, federal and certain other income tax exemption.

Lets you apply for 501c3 status

Contributions to certain types of nonprofits are tax deductible.

Protect your assets

Members and directors are shielded from personal liability for the nonprofit's action.

What is Nonprofit Corporation？

A Nonprofit Corporation is a special type of corporation that has been organized to meet specific tax-exempt purposes. To qualify for Nonprofit status, your corporation must be formed to benefit: (1) the public, (2) a specific group of individuals, or (3) the membership of the Nonprofit.

Examples of Nonprofits include: religious organizations, charitable organizations, political organizations, credit unions and membership clubs such as the Elk's Club or a country club.

Why we form a Nonprofit Corporation?

As someone involved with a charitable cause, you might be weighing the benefits of formally organizing your nonprofit. While it might take a little extra work, only with a state-recognized nonprofit corporation can you obtain private and public grants, low-cost postage rates and be exempt from income, sales and property taxes. Most importantly, only a formal nonprofit corporation allows individuals to donate money tax-free, while shielding your personal assets from liability.

If you decide to take the next step and form a nonprofit corporation, Advanta can help. Simply answer a few questions online and Advanta will create the necessary documents and file them with your state's agency. We can also complete your 501(c)(3) application for tax-exempt status with the IRS.

Checklist for New Nonprofit corporations

Incorporating your nonprofit and obtaining tax-exempt status are just two of many required steps. The following is a list of things to do or consider after starting a new nonprofit corporation.

  • Establish a corporate banking account.
  • Contact the state tax board for information about obtaining a state tax ID number and see if additional information must be submitted for state  tax exemption
  • Check with the state Department of Customer Affairs or Business Licensing to obtain any required business licenses or permits
  • Contract the state Attorney General's office to see if registration or reporting is required.
  • Find out about workers' compensation if you will have employees.