Thursday, March 28, 2024
 

Thinking of Starting An Arts Nonprofit?


If so, Entrepreneur magazine has just published a very good and concise article on the legal requirements necessary to start a nonprofit tax-exempt organization. Although brief, the article seems to mention the necessary filings and procedures necessary to launch a nonprofit corporation. Keep in mind that unlike for-profit businesses, nonprofit tax-exempt organizations are not owned by anyone and, furthermore, the founder, if on the board of directors, can certainly be voted off the board. The nonprofit must also have a public purpose.

I teach a course on how to start your a nonprofit tax-exempt corporation in New York State, once a month, over at Volunteer Lawyers for the Arts. Check this link for dates, times, and fees.

Anyhow,  here’s a snippet from Entrepreneur:

Unlike a for-profit business, a nonprofit may be eligible for certain benefits, such as sales, property and income tax exemptions at the state level. … Another major difference between a profit and nonprofit business deals with the treatment of the profits. With a for-profit business, the owners and shareholders generally receive the profits. With a nonprofit, any money that is left after the organization has paid its bills is put back into the organization. Some types of nonprofits can receive contributions that are tax deductible to the individual who contributes to the organization.

 

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