Published Dec. 23, 2013
A mutual benefit nonprofit corporation is formed solely to benefit its own members. Unlike religious or public benefit nonprofits, the purpose of the mutual benefit nonprofit is not to benefit the public at large, but rather a very specific group. The other major difference is that the revenue for the nonprofit is generated via the members. Money comes primarily from member’s fees, dues, and other member-related charges. Mutual benefit corporations usually include homeowner’s associations, trade associations, automobile clubs, social groups, and athletic or sport clubs. A country club is an example of a mutual benefit nonprofit: individual people pay to join the club, and then they must continue to pay a membership fee annually. Memberships can be bought and sold, and therefore any assets or property owned by the country club may be distributed among members in the case that the club should dissolve.
Why is a mutual benefit corporation considered a nonprofit?
It is not a rule that all nonprofits must benefit the general public, as not all nonprofits are charities. All revenue that is generated by a mutual benefit nonprofit organization is to go back to the benefit of the members, and the revenue generally comes from the members alone, not from the public. Mutual benefit corporations exist to benefit their members, providing services, insurance, and welfare for their members alone.
Published Dec. 23, 2013
What is the difference between a nonprofit corporation and a regular for-profit corporation? Aside from the name, the two entities can be separated by other differences ranging from the way each is operated to various tax implications. Below, you’ll find an in-depth analysis of for-profit and nonprofit corporations.
Shareholders vs. no shareholders
Published Dec. 23, 2013
If your nonprofit is planning to actively engage in public fundraising, you’ll need to register the nonprofit as a charity in most states before you begin soliciting donations. Below, you’ll find a checklist of everything you need to do to make sure the job is done right.
Ready. Set. Game Plan.
Before you begin filling out your charity registration application, you’ll want to know and have several things prepared ahead of time. In what ways will your nonprofit approach solicitation? Do you have a prepared financial history of your nonprofit organization? Will you be hiring professional solicitors? These are all questions to which you’ll want to know the answers, and have copies of the paperwork ready to go.
Published Dec. 23, 2013
Recent counts by the National Center for Charitable Statistics estimate that there are currently more than 1.5 million active nonprofits in the United States. With a business structure so popular, you’d think it would be easy to describe what exactly a nonprofit is; however, if you can do so in a sentence or two, consider yourself part of a minority. Many people attempt to classify nonprofits as charities, which does fairly capture some nonprofits, but that description doesn’t describe exactly what a nonprofit is or how a nonprofit functions.
Published Dec. 23, 2013
One of the great misconceptions surrounding nonprofit corporations is the idea that they all qualify for tax exemptions. The truth is that jumping through all the hoops to obtain tax-exempt status is hard work and many nonprofit organizations pay taxes like their for-profit counterparts. For those that do qualify for tax-exempt status, the most common designation, known as a 501(c)(3) status, is available for entities that qualify as public charities and private foundations. This one designation, however, doesn’t come close to providing options for the wide range of nonprofit organizations in existence.
To accommodate many other kinds of nonprofit organizations seeking tax exempt status, the IRS has created 33 different tax-exempt statuses for which nonprofits can apply. See the chart below for more information:
Published Dec. 19, 2013
If your nonprofit corporation is preparing to do business in a new state, you’ll need to register your nonprofit organization as a foreign entity in every state in which you want to solicit donations or sell products and services. The act of registering your nonprofit to do business out-of-state is known as “qualifying a foreign entity,” and below you’ll find everything you need to know about qualifying your nonprofit to do business in all 50 states:
The Qualification Process
Qualifying your nonprofit to do business outside of the state in which it was incorporated is a state-by-state process. Each state has particular requirements, but all states have one thing in common: a certificate of authority form. The actual name of the form varies slightly from state to state, but in each state the certificate of authority is the main document you will need to file. This form is filed with the secretary of state or corresponding agency.
Current City: Canton, OH
Certified Public Accountant with over 40 years experience in bookkeeping, accounting, finance, budgeting, planning, cash-flow management, taxation, employee benefit plans, cost accounting. Experienced in not for profits as well as privately-held and publicly-traded companies. Familiar with a wide variety of construction, manufacturing, service and natural resource industries. Strong IT background, and have experience in a multitude of software packages. Extensive user of EXCEL. Assistance with company formation and start-up issues. Strong legal background.
Bachelor of Business Administration (focus on Accounting & Finance), Bernard M. Baruch College of CUNY, 1972, Magna Cum Laude.
Current City: Delafield, WI
Jim provides consulting and strategic planning to help business owners develop and execute strategies to achieve both business and personal goals.
Jim is a valued and trusted advisor to businesses and their owners. He focuses on strategic issues such as formation of business enterprises, mergers and acquisitions, business dispositions, succession planning, and management transition. His style is characterized by creativity, thoughtful analysis, practical solutions, trust, and integrity. He has applied his technical and business management expertise and experience as an advisor and equally important, directly as a senior level corporate manager/ executive within various companies, to define and effectuate change in organizational direction.
Application of Jim's experience includes:
CEO & shareholder of Milwaukee area manufacturer of parts and components for OEM customers. Negotiated purchase of company and initiated programs to meet evolving demands from international customer base; achieved ISO certification.
Vice President of Wisconsin based manufacturing company and financial advisor/manager to owner. Developed and managed all investment and banking relationships. Negotiated and conducted sale of North Carolina division.
Developed strategic plan for medical services company, expanding company from a local area provider to a three-state 17 office regional provider. Assumed role as CEO upon illness of major shareholder/president. Conducted sale of company to Benchmark Medical. Advisory board member and shareholder.
Director of Finance at Associated Dental Services, Inc. and Dental Insurance of Wisconsin, Inc., creating a multi office dental services provider network and insurer. Assisted in sale to national buyer.
Lead strategic planning for Southeastern Wisconsin law firm, conducted a search for and managed a merger with a prominent regional firm.
CEO and President of WI based not for profit organization dedicated to teaching personal financial literacy and economic freedom.
CPA with Arthur Young & Co and then BDO, where he held senior management/partner positions. Later he started his own firm.
BBA degree in Accounting from University of Wisconsin - Milwaukee</p>
Natasha Sierra Williams
Current City: Baltimore, MD
Currently business marketing coordinator partnering with a premier financial institution. Execute business websites, businesss cards, brochures, logo branding,m etc. Licenced cosmetologist. Well rounded technical background to include basics of social media and google services,
Published Dec. 18, 2013
The biggest difference between a benefit corporation and a nonprofit organization is that the benefit corporation is a for-profit corporation and the nonprofit is a not-for-profit corporation. What this means is that no individual within a nonprofit is legally allowed to profit from dividends and additional money left over at the end of the fiscal year after all expenses have been covered. At the end of a fiscal year, if a corporation had dividends or additional leftover profits after all expenses have been taken care of, it can be distributed among shareholders as a profit. This is not an option for nonprofits, who do not have shareholders, and whose profit must go towards the purpose for which the organization was formed. Also, a benefit corporation can declare that total shareholder profit is not their primary goal. They can declare certain profit sacrifices in order to instead benefit the environment or society in some way.
Defining a benefit corporation
The primary difference here is in the fact that a benefit corporation has a charitable or socially conscious purpose that it makes provision for in its budget. So a benefit corporation was formed and exists to make a profit for its shareholders, and operate in the way that a regular corporation does. They do, however, follow a few additional guidelines:
Benefit corporations issue annual transparency reports.
Benefit corporation commit to operating in a sustainable fashion.