What’s a Non-Profit - and when do you need it?

A Non-Profit organization (also called Not-for-Profit) is a corporation created for charitable, religious, scientific, lobbying, purposes or to form professional organizations, clubs, societies and more.

It's purpose is to bring your heartfelt mission to life, serve the public good + leave a legacy.

It’s operated by a board of trustees.

Profits generally come from donations or fundraising + must be devoted to the organization’s mission - not benefit any private individual.

Most Non-Profits seek tax-exempt status under 501(c) of the Internal Revenue Code with the help of an accountant.

Note: Non-Profits require an engaged board of trustees, attention to fundraising, a clear mission + code of ethics, and detailed financial records. Know that you don’t “own” a Non-Profit - it’s a separate entity. (I worked in Non-Profits for 15 years and was a Board Chair of another organization, so I understand them well.)

When do you need one?

A Non-Profit may be right to form if you…

• Have a clear charitable mission to help a community, cause, or population - not to make money for yourself.
• Want to serve a larger mission beyond the impact of just one person.
• Are comfortable with detailed record-keeping, ongoing reporting and compliance.
• Want legal protection, clarity, accountability, and limited liability to protect you.
• Want to accept tax-deductible donations - so your donors to get a tax write-off.
• Plan to apply for government or private grants.
• Want to leave a legacy that can continue on for years and years.

You should NOT create a Non-Profit if you:

• Primarily want to run a business + keep the profits.
• Want to maintain total control with no input from a board of trustees.
• Are just testing out an idea or unsure of a charitable purpose.
• Want to privately support a cause - make a donation directly to a Non-Profit.
• Want to earn personal income directly from donations.

Why do you need it?

The best reasons to form a Non-Profit are to…

• Serve the public good - to help others or create positive social change, not personal profit.
• Qualify for tax-exempt status - to be exempt from federal income tax and allow for donations to be tax-deductible.
• Attract grants and major donations - to receive potential funding from government agencies, foundations, and corporate donors.
• Build credibility + trust - to show that your organization is mission-focused and accountable, which builds trust with the public, partners, and donors.
• Create long-term impact - to build something sustainable that can outlast your personal involvement, with a board and team to carry the mission forward.
• Protect the mission legally - to give legal structure, liability protection, and safeguard your mission from private interests.
• Organize volunteers, staff + collaborators - to engage volunteers, hire staff, and collaborate with other organizations in a structured way.

Client Love

What’s included?

• Your Non-Profit Formation + Filing Package includes:

• Non-Profit Formation + Filing – to compile + file the required paperwork to create your Non-Profit.
• Non-Profit Formation Prep Sheet – to get you clear about your desired Non-Profit name, corporate policies + more.
• 30-Minute Prep Call – to share info about you + your business for the Non-Profit filing in a 1-on-1 phone call with our team member.
• Articles of Incorporation – to have an official record of your Non-Profit formation.
• Federal Tax ID Number – to have for opening the Non-Profit bank account, hiring staff + other business ventures.
• Corporate Bylaws – to have your Non-Profit governing document (most attorneys charge separately for this document!)
• 60-Minute Walk-Through Call – to walk through your Non-Profit formation with Lisa after it’s granted, explain your corporate documents, answer your questions + discuss next steps.
• And more!

Can I do it myself?

No, I don’t recommend creating a Non-Profit on your own without the help of a lawyer and an accountant.

You don’t know what you don’t know.

Don’t take that risk.