Government Assistance

It can be difficult getting a non-profit organization started. However, the government has a few means to assist businesses with this. A non-profit organization has the ability to benefit itself through applying for incorporation, tax-exempt status, and tax deductible status.

In order to protect a non-profit organization, becoming incorporated is recommended if applicable. Being incorporated simply means that the organization is identified as being a separate unity from a personal owner. However, in order to file for articles of incorporation status with the state office, a board of directors is required. Once incorporated, a non-profit organization can benefit with the following:

• Allows the owners of the organization to avoid liability of the actions taken by the organization.
• The property and bank account of the organization will be legally owned by the organization.
• Ensures peace of mind in knowing the organization can continue even without the original creators.

Filing for incorporation can be a huge benefit with the protection it gives.

Even if an organization can not file for incorporation, there is the possibility of applying for tax-exempt status, which is usually federal taxes(however, there are others). Tax-exempt simply means the business does not pay taxes. There are different filing statuses of tax-exempt, however 501(c)(3) is the most common, which means it is a "charitable non-profit". In order to apply for tax-exempt status, the organization is required to be either a community chest, corporation, foundation, or fund. Being able to qualify for tax-exempt status is just one of the small things that can be a huge help in cutting costs for a non-profit organization.

Another form of government assistance comes in the form of qualifying for tax-deductible status. This basically allows donations to be deducted from taxes due. Like tax-exempt statuses, there are different types of tax-deductible statuses as well. The type the IRS will qualify an organization as depends on how the organization is ran and the types of services it provides. It is yet another small step that can be a huge saver for a non-profit organization.

When starting a non-profit organization, it is important to find out what government qualifications it meets. The protective benefits of incorporation and the cost cutters of tax-exempt and tax-deductible status are just a few of the many ways a non- profit can help itself obtain its goals. For more information on starting a non-profit organization, the following site is very helpful: http://www.managementhelp.org/strt_org/strt_np/strt_np.htm.