subject: Important Information Related To Register A Non For Profit Organization [print this page] Usually, every company distributes its revenue as profits or dividends. In the case of a non profit organization, the surplus revenues used for achieving its goals. The aim of such organizations is not to earn profits only. They work for social welfare. A non profit organization may or may not have shareholders. They use their surplus revenues for its self-preservation, plans or expansion. These organizations consist of controlling members or boards. In order to register a non for profit organization, one must be aware about related rules and regulations. Hence, following factors should be kept in mind at the time of registering a non profit organization.
A person must be aware about the basic mission of the organization. This mission statement required at the time of incorporation of the organization. Such a statement describes the organization's overall purpose.
A non profit organization can be formal, as well as, informal. When some friends just get together, like to form a self help group, then its considered as an informal nonprofit organization. A non profit organization can also be a separate legal organization that have its own property and bank account. In this way, a person can keep himself safe from liability from operations of such an organization.
Registration of non profit organization (formal) requires to submit articles of incorporation, as well as, other charter documents with the concerned local, state office. They also require a board of directors. In some countries, the request to register a non for profit organization can be filed at the provincial or Federal levels.
One can get the exemption from federal taxes or other taxes by filing to the IRS (internal revenue service) to be a "tax-exempt" organization. At many places, this can be filed at the provincial and Federal levels. Some organizations can be granted the status of tax-deductible depending on the nature of the organization.
The steps taken by a person whiles tarting a non profit organization depend on organizational plans that consist of the nature of its services. Such steps also affected by the interruption of IRS in the nature of the organization including its services.
According to an IRS ruling, issued in the mid-1990s, Intermediate Sanctions contain penalties for such organizations that do not have appropriate fiscal review and submitting the reports on time. Such directives have made the board members keep themselves aware about their role, culpability and responsibility towards organizations.
Transparency and accountability share utmost importance in non profit agencies. The reason is that the Better Business Bureau rates these organizations on line. Such ratings consist of administrative and overall costs that relate to the program budget.
