What Are The Alternatives To A Nonprofit?

ALTERNATIVES TO A NONPROFIT CORPORATION If the existence of the venture is for a short duration, the nonprofit organization may not be the best structure.  Nonprofits are good for long-term ventures. Alternatives include: (1) Operating as an informal organization under the legal umbrella of an existing charity, also known as fiscal sponsorship; or (2) Forming an unincorporated nonprofit association.   FISCAL SPONSORSHIP An alternative maybe to obtain fiscal sponsorship, in which the “sponsee” can join an existing organization and operate under its tax-exempt status.  This provides a small project the opportunity to be tax exempt through the sponsor’s IRS status and [...]

What Are The Alternatives To A Nonprofit?2020-03-27T12:40:04-07:00

Can Nonprofits Hire Employees?

EMPLOYEES OF NONPROFITS Many nonprofits hire employees as staff to provide programs, conduct fundraising, maintain accounting, file taxes, and other services.  The nonprofit has the same legal obligations to its employees as any private business corporation, such as prohibitions against discrimination and harassment.  The nonprofit corporation is also obligated to report employee’s income and make withholder payments to the Federal and State governments, and is responsible for State unemployment insurance taxes, workers’ compensation insurance, State disability insurance, payment of the employer’s portion of Federal social security (FICA), Federal unemployment tax (FUTA), and Medicare.  The nonprofit must also comply with standard [...]

Can Nonprofits Hire Employees?2020-03-27T12:44:22-07:00

What Is A Nonprofit Organization?

WHAT IS THE LEGAL FORMATION OF A NONPROFIT ORGANIZATION?  The primary business entity formation for a nonprofit organization is the corporation.  The corporation is a separate legal entity from the people who own, manage, and operate it.  The corporation is composed of a Board of Directors and officers. The Board is responsible for overseeing and supervising the officers and employees of the corporation.  The officers are responsible for the daily operations of the corporation. The directors and officers have limited personal liability for the business debts of the nonprofit organization.  Creditors can only satisfy their debts incurred by the [...]

What Is A Nonprofit Organization?2020-03-08T22:37:40-07:00