| Are there any restrictions in running a nonprofit corporation? |
| 1. Your organization will be exempt from state and federal income taxes. | 1. In certain cases, there are some (not insurmountable) limitations on who may receive a salary from the corporation. |
| 2.You will become eligible to receive gifts, bequests and grants not normally available to businesses and individuals. | 2. The net profits and assets of the corporation may never be distributed to the directors or officers or any private person. |
| 3. Donations to your organization will be tax-deductible according to state and federal guidelines. | 3. Your organization may not sponsor political candidates and may attempt to influence legislation only to an insubstantial degree. |
| 4. You will qualify for certain employee benefits, such as accident and health insurance, pension and retirement plans, and so forth. | 4. There are strict limitations on the amounts of unrelated business activities in which your organization may engage. |
| 5. You will gain a clearer sense of organizational identity and purpose as well as the recognition and nominal prestige that come with corporate existence (people will take you more seriously). | 5. You will be expected to maintain accurate and complete financial records of the corporation, file yearly financial returns (like any corporation or business), and hold regular meetings of the board and document those meetings in the form of minutes. |
| 6. You may qualify for certain property tax exemptions. | PlanRight413 Western Drive, Suite 15 831-423-2323 Josh Wagner |
| 7. You will qualify for special nonprofit bulk mailing rates. | |
| 8. You will enjoy limited personal liability should legal action be brought against your organization or if your organization falls into debt. | |
| 9. Your corporation will exist in perpetuity even if you no longer maintain your connection with it. |
PlanRight -- Start-up & Tax Services to Nonprofits |