Will your association benefit from becoming a non-profit corporation?

Here are some circumstances that might make it worth your while to incorporate and get tax-exempt status:

  • You want to solicit tax-deductible contributions. Contributions to nonprofits are generally tax deductible for those who make them. If you want to solicit money to fund your venture, you'll make it more attractive to potential donors if their contributions are tax-deductible.
  • Your association makes a taxable profit from its activities. If your association will generate any kind of income from its activities, it's wise to incorporate so that you and your associates don't have to pay income tax on this money.
  • You want to apply for public or private grant money. Without federal tax-exempt status, your group is unlikely to qualify for grants.
  • Your members want some protection from legal liability. By incorporating your association, you can generally insulate your officers, directors, and members from liability for the activities they engage in on behalf of the corporation
  • Your advocacy efforts might provoke legal quarrels. If, for instance, your association is taking aim at a powerful industry (such as tobacco companies), it might be worth incorporating so that your association's officers and directors will have some protection from the spurious lawsuits that are sure to come-and will also receive compensation for their legal fees.

Forming a nonprofit corporation brings other benefits as well, such as lower non-profit mailing rates and local real estate and personal property tax exemptions.

Ask an Attorney

Feel free to ask a legal questions that you would like answered. Your question will go directly and only to Deskin Law Firm, a professional law corporation. Deskin Law Firm will contact you directly to discuss your situation, usually via telephone, so please provide multiple ways to reach you via phone. Your situation will be kept confidential. There is no cost to discuss your situation and no attorney-client relationship is created by simply filling out the form and sending it.

Please type your first and last name.

Please type your area code and phone number.

To most effectively be able to reach you, please type another phone number where we may be able to reach you.

Please type the city and state (and country if outside the USA) that you live in.

Please type your email address and check it to make sure it is correct.

This question is for testing whether you are a human visitor and to prevent automated spam submissions.
3 + 1 =
Solve this simple math problem and enter the result. E.g. for 1+3, enter 4.