Thursday, March 08, 2007

How to Start a Nonprofit Corporation

I started reading How to Start a Nonprofit Corporation tonight, by Anthony Mancuso. Below are my notes through page 38.

The paperwork required to incorporate (including articles of incorporation and bylaws) takes only a few hours to complete. Annual tax preparation and meeting minutes are additional sources of paperwork.

The cost to incorporate and gain tax-exempt status is anywhere between $200 and $600, assuming you do the paperwork yourself without hiring a lawyer. Nonprofits that expect to have $10,000 in donations fall in the $550 to $600 range for incorporation and tax-exempt application fees. I would aim high.

"Being able to attract donations is a prime reason for choosing nonprofit status...Under state corporate statutes, a nonprofit corporation is not legally required to have a specified amount of money in the corporate bank account before commencing operations."

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