No one owns a nonprofit. The Board of Directors is responsible for the organization but they do not own it the way an individual or partners own a for-profit business. Owners of a business get to pocket profits. Profits in a 501(c)(3) nonprofit are called surpluses, and they must be...Read More »
Every 501(c)(3) nonprofit organization must have a Board of Directors. The number varies state to state. The Board is responsible financially and ethically for the organization.
The most important qualification for a good Director is that he or she believe in the mission of the organization. They don’t have to have...Read More »
Do you need an attorney or CPA to file for 501(c)(3) tax-exempt status? There are three ways to go about obtaining your 501(c)(3).
One, do it yourself. If you are someone who does your own income taxes, then you can probably handle all the paperwork that becoming a nonprofit entails. The...Read More »
What does EIN stand for? EIN stands for Employer Identification Number.
Does a nonprofit need to have one? Yes, the IRS requires that a nonprofit get an EIN before applying to 501(c)(3) status.
What about if a nonprofit does not plan on hiring any employees? It still has to have an...Read More »
What are the three most common mistakes people make when trying to create a 501(c)(3) nonprofit organization?
1. Many people write Articles of Incorporation that the state corporation commission accepts but that the IRS rejects.
2. They create a Board of Directors which has too many friends or relatives on it,...Read More »