We have written on non-profit corporations before, but as we only dedicated a sliver of a paragraph to how you actually form a non-profit, we felt the topic was worth revisiting. A non-profit corporation is a great way to fulfill a philanthropic pursuit, and if you are looking at dedicating your life to charity, then running a non-profit may be right up your alley. Forming a non-profit corporation is actually very similar to forming a regular corporation.
Step 1. Find a business name
Your non-profit is going to need a name just like with any other standard corporation. That name needs to be unique and, typically, has to include the a designator like ‘Corporation’ or ‘Incorporated,’ though not all states require that.
Step 2. File your Articles of Incorporation
After you’ve confirmed that your corporate name is available, you have to actually form the corporation by filing what is normally known as your Articles of Incorporation. The forms usually aren’t too complicated, and normally just ask for the names and addresses of the corporation, its registered agent, and its directors, as well as the corporation’s purpose for existing.
Studious readers of our MyCorp blog may recall that, back in June, we covered non-profit corporations in a ‘Business Basics’ post, and answered a few simple questions like what a non-profit corporation was and how to form one. This week, we felt it would be a good idea to tackle one of the most often asked questions about non-profits – how do you run a successful non-profit corporation? Now, it’s impossible to distill what makes a non-profit successful into a 700 word post, but we can point out a few things you can do to help your non-profit succeed.
Draft, and adhere to, a solid mission statement
When you form a non-profit corporation, you have to clearly identify your mission. What, exactly, do you hope to accomplish with this organization? Who do you hope to help? What type of a vision do you have? You may have a few fuzzy answers to these questions running through your head, but you have to absolutely solidify every idea and goal you have before you ever hope to begin raising money. If your ‘elevator pitch’ is a jumbled mess of ideals with no, clear, actionable goals, no one will want to donate to your non-profit. The IRS will also review your mission statement when they decide whether or not to grant your group tax-exempt status.
Tucked away on the East Coast and the sixth most densely populated state in the United States, “The First State” Delaware holds another nickname when it comes to business as the “incorporation capital of the world.”
Delaware is the legal home to more than a million business entities, including 50% of all U.S. publicly traded companies and 64% of the Fortune 500. Additionally, the state recently became 19th state to enact benefit corporation legislation, allowing companies the ability to register within Delaware as a benefit corporation.
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You hear of seemingly strong businesses closing up shop all the time. One day everything is normal and the next they’re putting up the dreaded “Thanks for all your support over the years!” sign and locking the doors forever. I just saw it happen to my local bookstore a few months ago. For customers, the big “going out of business” sale might seem to come out of nowhere, but a million factors always come in to play.
In today’s rapidly paced business world, staying relevant and competitive is a big task. Sometimes it can seem like you’re always running uphill just to stay where you are. Many business owners don’t feel like they can keep up which causes them to give up the ghost.
It’s not impossible, however. You can keep up with all the changes in your industry while managing not to get too behind in everything else.
We decided that this week to take a chance to examine the charitable business structure – non-profit corporations. Most people have undoubtedly heard of a non-profit before. You might even donate to one on a regular basis. But fewer know how, exactly, to go about creating a non-profit, or what the differences between a non-profit corporation and regular one are.
What is a Non-Profit Corporation?
For our ABC’s of MyCorp this week, we’re focusing on N for Non Profit which is also referred to as an NPO for non profit organizations. As stated on businessdictionary,com, non profits are generally charities, associations, and other organizations formed to further cultural, educational, religious, professional or public service objectives.
Before forming and looking into funding a non profit organization of your own, certain considerations need to be put into place to ensure that the formation is detailed and clear in the societal issue it is working on addressing. You can find out more information about the following eight points at our MyCorp “Forming an NPO” learning center!
For the entire month of August, we’re giving aid to Joplin, Missouri after the recent devastation of tornadoes throughout the area that occurred on May 22nd. 8,000 homes and small businesses were destroyed and damaged in the aftermath of the natural disaster. Even more tragic was the loss of life that occurred with 160 people killed. Joplin is still picking up the pieces with aid from the Federal Emergency Management Agency, but still needs the help of donors and charities to assist them in mending and beginning life once more. Continue reading