|
A nonprofit
entity is formed for purposes other than
generating a profit. Nonprofit corporations
are formed under state law, but often
seek recognition under federal and state law
as a nonprofit entity for tax purposes.
Church or
church association, schools, charities,
volunteer services organizations, museums,
trade organizations and business leagues
often operate as nonprofit entities.
The mere formation as a nonprofit entity
does not mean that such entities are
automatically exempt from income tax.
Contributions to them are not always tax
deductible. Nonprofit entities must meet and
follow
certain guidelines and most of those
entities must
apply for tax-exempt status. Although
churches are not required to apply for
specific recognition as an exempt
organization, many do anyway.
Other legal
issues that a non-profit organization deals
with are the same as those for-profit
entities face. Nonprofit entities must
address employment issues, contracts and
financial matters.
There are
important differences in how nonprofit
entities are governed compared with
for-profit entities.
The Chapar Firm, LLC is
experienced in providing counsel to
nonprofit entities and their management.
|
