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

Regulation of Nonprofit Organizations

THE ATTORNEY GENERAL IS RESPONSIBLE FOR THE REGULATION OF NONPROFIT ORGANIZATIONS The California Attorney General is responsible for the regulation of nonprofit organizations for public policy reasons.  The Attorney General represents all the public beneficiaries of charity, who cannot sue in their own right.  Therefore, all charities must register with the Attorney General and the Attorney General’s Registry of Charitable Trusts maintains public files and financial reports for all charities registered in California.  The Attorney General has the power to oversee the operations of Public Benefit Corporations. The Attorney General’s Charitable Trust Section has investigative audit powers and may bring [...]

Regulation of Nonprofit Organizations2020-03-22T12:59:08-07:00

Nonprofit Public Benefit Corporation

WHAT ARE MEMBERS OF THE NONPROFIT PUBLIC BENEFIT CORPORATION? Membership for a Nonprofit Public Benefit Corporation is optional.  The reasons for providing membership in a nonprofit include: (1) Attract funds through membership, or (2) Establish support in the community.  However, many administrative burdens are associated with forming a membership organization and it is more common for a nonprofit to not have members.   If the nonprofit includes membership, the Bylaws must address the controlling provisions for membership such as qualifications, method of selection, expulsion, dues and fees, notice and frequency of meetings, the number required for a quorum to make decisions, [...]

Nonprofit Public Benefit Corporation2020-03-20T22:42:39-07:00

Form A Nonprofit Organization

WHAT IS THE PROCESS TO FORM A NONPROFIT ORGANIZATION? There are many steps involved to form a nonprofit organization.  In California, a Nonprofit Public Benefit Corporation may be formed by completing certain steps.  These include: Name Availability ($10.00 Fee): It is best to check the availability of a particular name for the nonprofit corporation and reserve the name with the Secretary of State.  Articles of Incorporation ($30.00 Fee): The Articles of Incorporation is the formal document that legally creates the corporation and must be filed with the Secretary of State.  The Articles must specify the charitable purpose of the organization, [...]

Form A Nonprofit Organization2020-03-13T21:40:28-07:00

Nonprofit Public Benefit Corporation

https://youtu.be/zg7u3Q_sj4U WHAT IS A NONPROFIT PUBLIC BENEFIT CORPORATION? A Nonprofit Public Benefit Corporation must be formed for public or charitable purposes and cannot be formed for private gain of any individual.  Public benefit purposes include organizations such as childcare centers, shelters for homeless people, community health care clinics, museums, hospitals, schools, performing arts groups, conservation groups, and affordable housing groups.   The Public Benefit Corporation is legally restricted in that all its assets must be irrevocably dedicated to charitable, scientific, or educational purposes.  In this sense, the nonprofit corporation is owned by the public. No private individual can claim ownership [...]

Nonprofit Public Benefit Corporation2020-03-09T12:49:40-07:00