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Commonly Asked Questions about Nonprofit Organization Legal Forms

There are three primary documents that govern the operations of a nonprofit organization: (1) the articles of incorporation, (2) the bylaws, and (3) the conflict of interest policy.
Incorporated associations An incorporated association is the most common legal structure for registered charities. The name of an incorporated association will be something like XYZ Incorporated or XYZ Inc.
Governance responsibility is vested in the board of directors or trustees. These individuals are accountable to state and federal authorities to ensure the organization operates in a legally compliant manner and for the purposes outlined at formation. Also, a nonprofit cannot be sold.
The five steps to becoming a 501(c)(3) corporation are: choose a purpose, form a corporation, file paperwork with the IRS, comply with state and local requirements, and maintain your nonprofit status.
The nonprofit corporation is the traditional business structure among nonprofit organizations, and as such, it is also the most common. Nonprofit corporations are formed under state law, and as a result, are subject to state rules and regulations after their formation.
5 important legal documents for nonprofit organizations Articles of incorporation. Bylaws. Forms for establishing tax-exempt status. Minutes from organizational meetings and board meetings. Legal documents for daily operations.