Nonprofit, Public and Professional Organizations

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

About the Author

Drake Forester, Chief Legal Strategiest - Northwest Registered AgentDrake Forester is the chief legal strategist at Northwest Registered Agent, LLC. Throughout his career, Drake has researched many complicated nonprofit compliance issues and provided whitepaper and publications for many leading nonprofit organizations in the United States.

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.

About the Author

Drake Forester, Chief Legal Strategiest - Northwest Registered AgentDrake Forester is the chief legal strategist at Northwest Registered Agent, LLC. Throughout his career, Drake has researched many complicated nonprofit compliance issues and provided whitepaper and publications for many leading nonprofit organizations in the United States.

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. 

Definition

About the Author

Drake Forester, Chief Legal Strategiest - Northwest Registered AgentDrake Forester is the chief legal strategist at Northwest Registered Agent, LLC. Throughout his career, Drake has researched many complicated nonprofit compliance issues and provided whitepaper and publications for many leading nonprofit organizations in the United States.

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:

About the Author

Drake Forester, Chief Legal Strategiest - Northwest Registered AgentDrake Forester is the chief legal strategist at Northwest Registered Agent, LLC. Throughout his career, Drake has researched many complicated nonprofit compliance issues and provided whitepaper and publications for many leading nonprofit organizations in the United States.

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.

About the Author

Drake Forester, Chief Legal Strategiest - Northwest Registered AgentDrake Forester is the chief legal strategist at Northwest Registered Agent, LLC. Throughout his career, Drake has researched many complicated nonprofit compliance issues and provided whitepaper and publications for many leading nonprofit organizations in the United States. 

Edward Levy

Available

Canton, OH

Chapter: Canton SCORE

Languages:English

How I can help you

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.

Areas of expertise

Industry Experience

Education

Bachelor of Business Administration (focus on Accounting & Finance), Bernard M. Baruch College of CUNY, 1972, Magna Cum Laude.

Communication methods

Have you found success with mentoring from Edward Levy? Share your story.

James Injeski

Unavailable

Delafield, WI

Languages:English

How I can help you

 

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.

 

Areas of expertise

Industry Experience

Education

<p>
BBA degree in Accounting from University of Wisconsin - Milwaukee</p>

<p>
CPA Certification</p>

Communication methods

Have you found success with mentoring from James Injeski? Share your story.

Natasha Sierra Williams

Unavailable

Baltimore, MD

Languages:English

How I can help you

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,

Areas of expertise

Industry Experience

Education

n/a

Communication methods

Have you found success with mentoring from Natasha Sierra Williams? Share your story.

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.

About the Author

Drake Forester, Chief Legal Strategiest - Northwest Registered AgentDrake Forester is the chief legal strategist at Northwest Registered Agent, LLC. Throughout his career, Drake has researched many complicated nonprofit compliance issues and provided whitepaper and publications for many leading nonprofit organizations in the United States. 

Tivoli Theater

The Tivoli Theatre is owned and operated by Owen County Preservations, Inc. a not-for-profit, 501(c)3 corporation governed by a seven member Board of Directors. OCP is dedicated to preserving and increasing the awareness of Owen County’s rich architectural and historical heritage. The organization’s motto, Linking the Past With the Future, refers to our county’s history as seen in the architectural style, craftsmanship, and material used in earlier times by those who settled the county.

Formed in 1991, OCP strives to save and maintain these important and often endangered structures in Owen County by encouraging the preservation of our heritage while planning for the future growth of the communities in Owen County. We value the older buildings and items of historical significance throughout the county and have made it our endeavor to promote their preservation and restoration. We also see the importance of planning for the future through educating and involving the entire community.

The restoration of the Tivoli Theatre embodies the spirit of OCP and has become our largest undertaking to date. Through the presentation of films, performing arts and entertainment events, the Tivoli Theatre’s mission is to provide quality, affordable programming and serve as a gathering place for residents of Spencer and the surrounding area. As a celebrated historic landmark working toward a sustainable future, the Tivoli aims to inspire downtown revitalization and enhance pride in the community.

See video
My Location
24 N. Washington St
Spencer IN 47460
United States
Year Company Formed
2013
How SCORE Helped
Very early in the Tivoli Project, OCP began developing a business plan that would ensure the successful operation of the theater after the renovation was complete.  While it was recognized that the theater would be the primary source of revenue, it would be necessary to augment that revenue from other sources.  A key factor in doing so would be to maximize the utility of the building by incorporating spaces that could be rented independently from the theater, per se, or used to bolster the functionality of the theater.  It was also recognized that we would require an experienced theater director since none of the OCP directors nor it's membership had such experience.  The theater director would need to be a paid employee of OCP with a staff of volunteers under his or her direction.  A business plan was developed accordingly and reviewed by SCORE members Mike Spinks and Tad Wilson.  They provided several essential recommendations that were incorporated into the plan along with a few other changes that resulted from additional research suggested by the SCORE members.  A revised version of the plan was put together and again reviewed by Mike and Tad.  They recommended a few more minor changes that were incorporated into the third version, which they reviewed and "blessed".  They advised that the business plan is a "living document" and will need to be changed as situations develop, but provided us with the confidence that we needed to proceed.  As they predicted, two more minor changes were made before the business plan was "published".  Owen County Preservations is very grateful for the invaluable assistance provided by SCORE, and in particular Mike Spinks and Tad Wilson.  The Tivoli business plan allowed us to attain the confidence of the Cook Group as a viable custodian of their investment, capable of operating the Tivoli Theatre as a successful business.   It also provided the confidence needed by Owen County State Bank to provide us with an unsecured line of credit to use for start-up capital that was required to hire a director, purchase supplies, and meet other financial requirements necessary to start the operation. Our business plan was key to our success, and SCORE participation in its development was key to the success of the business plan.
 
Les Jordan
Treasurer
Owen County Preservations, Inc.
 
Syndicate content