WHAT IS A NON-PROFIT?
When you hear the term “non-profit,” you probably think of a charity or organization working towards a way to benefit the community, but they also benefit the economy.
Non-Profits have a charitable purpose or association with the organization and are eligible for tax exemptions. To receive a tax-exempt status with the IRS, the nonprofit’s purpose must fall under section 501(c)(3) of the Internal Revenue Code:
“... corporations, and any community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment), or for the prevention of cruelty to children or animals.”
Non-profits are like corporations through their structure and process of creation.
Personal liability protection
All profits must go to the charitable cause and can't be distributed to people who started the nonprofit
Difficult to raise capital through banks or other typical financings outside of donations
Little-to-no salary offerings (staff are expensive)
If you’ve decided that forming a Non-Profit is right for your company, EBW-Services is here to help you handle all the filings to start your business and keep it compliant.