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NON-PROFIT ISSUES

This section applies to religious, charitable, educational, and other non-profit organizations. In order to maintain IRS 501(c)(3) Tax-Exempt Status there are numerous duties that must be met. These duties can vary depending on the kind of non-profit organization exists but there are also many similarities that must be complied with.

TAX EXEMPT STATUS FOR NON-PROFITS

How can I apply for tax exempt status for my non profit?


IRS requires that Form 1023 applications for recognition of exemption be submitted electronically online at www.pay.gov. For more information, please refer to the Form 1023 product page. https://www.irs.gov/charities-non-profits/applying-for-tax-exempt-status




What are the benefits and pitfalls of starting a non profit (as opposed to a for profit) business?


The defining factor between a nonprofit and for-profit organization boils down to IRS code 501(c) which excuses nonprofits from federal tax liability.1 These qualified charitable organizations face a tradeoff since they must distribute surplus earnings to a social cause. The individuals in a nonprofit possess limited liability about the incorporated legal entity, which provides both an upside and downside. https://www.investopedia.com/articles/investing/110215/pros-and-cons-being-nonprofit.asp





NONPROFT BOARD OF DIRECTORS

Is a board of directors required for a non profit?


Yes, It is legally required for a nonprofit to have a board of directors, whose duties involve the responsibility of making sure that the nonprofit follows nonprofit law, adheres to its mission, and stays financially stable. https://www.attorneygeneral.gov/wp-content/uploads/2018/02/nonprofitbooklet.pdf




What are the rules surrounding the board of directors for my non profit?


"There are many rules for Board of Directors of nonprofit organizations laid out in the attorney general's handbook. Here are some of them (directly from the handbook):

FIDUCIARY RESPONSIBILITIES OF BOARD MEMBERS AND SENIOR MANAGEMENT

1.DUTY OF CARE
Board Members, senior management and members of committees must perform their duties in a manner they reasonably believe to be in the best interests of the corporation using the same degree of care, skill, caution and diligence that a person of ordinary prudence would use under similar circumstances. Decision-makers are required to make reasonable inquiries when analyzing contracts, investments, business dealings, and other matters.
An individual who is acting in conformance with this standard will:
• attend and participate in board meetings on a regular basis;
• attend and participate in committee meetings when the individual is a member of the committee;
• diligently read, review, and inquire about material that affects the corporation;
• keep abreast of the affairs and finances of the corporation; and• use independent judgment when analyzing matters that affect the corporation.

Decision-makers may rely on information provided by their employees, committees, attorneys, public accountants and qualified professionals as long as the decision-maker reasonably believes that the information provided is reliable. Decision-makers must use their own independent judgment when evaluating information. Individuals who fail to meet the prescribed standard may be personally liable to the corporation if their actions cause financial harm.Board members, trustees and senior management have a fiduciary responsibility when handling finances and investments. That simply means, they must exercise the degree of care, caution and diligence that prudent persons would exercise in handling their own personal investments and finances. Individuals who have or claim to have special knowledge or skills in the area of investment will be held to a higher standard. Fiduciaries who carelessly or negligently invest funds may be personally liable for any losses sustained.

2.DUTY OF LOYALTY
Board members and senior management must always perform their duties in good faith with the best interests of the organization in mind. This means that they must not seek to derive private gain from business transactions that involve the nonprofit corporation or advance their own interests at the expense of the corporation. Acts of self-dealing constitute a breach of fiduciary duty which may result in personal liability to the nonprofit organization. Board members, trustees, and senior management should avoid conflicts of interest and even the appearance of impropriety. Individuals who take advantage of corporate opportunities to make profits for themselves at the expense of the corporation may be liable for the profits they received at the organization’s expense."
https://www.attorneygeneral.gov/wp-content/uploads/2018/02/nonprofitbooklet.pdf




Can I maintain control of the non profit I create?


Every nonprofit corporation must have a president, a secretary and a treasurer. Although it is not necessary to use the above titles, every nonprofit corporation must have an individual who fulfills each of those roles and the same individual may fill multiple roles. In order to avoid the appearance of impropriety, it is best not to give one individual too much control over the corporation. Instead, power should be distributed among different officers or board members. A corporation may have as many officers with as many different titles as it deems necessary. https://www.attorneygeneral.gov/wp-content/uploads/2018/02/nonprofitbooklet.pdf





NONPROFIT REGISTRATION

O aplicativo é gratuito?


Sim, qualquer pessoa com um dispositivo suportado pode baixar o aplicativo gratuitamente e começar a usá-lo. Além disto, não apresentamos propagandas no aplicativo.




O aplicativo precisa de internet para funcionar?


Sim, o aplicativo funciona somente quando o celular está conectado à internet.




Como posso baixar o aplicativo?


Baixa o aplicativo é muito fácil, basta clicar no link abaixo referente ao sistema operacional do seu celular. IOS Android




Como posso ajudar?


Ótima pergunta! Você pode nos ajudar das seguintes maneiras: - Baixando e usando o aplicativo - Compartilhando a reflexão do dia com outras pessoas - Fazendo avaliações do aplicativo nas lojas - Orando por nós e por essa obra para que ela alcance muitas vidas promovendo salvação e edificação da Igreja de Cristo





DONATION SOLICITATIONS

Is a board of directors required for a non profit?


Yes, It is legally required for a nonprofit to have a board of directors, whose duties involve the responsibility of making sure that the nonprofit follows nonprofit law, adheres to its mission, and stays financially stable. https://www.attorneygeneral.gov/wp-content/uploads/2018/02/nonprofitbooklet.pdf




What are the rules surrounding the board of directors for my non profit?


"There are many rules for Board of Directors of nonprofit organizations laid out in the attorney general's handbook. Here are some of them (directly from the handbook):

FIDUCIARY RESPONSIBILITIES OF BOARD MEMBERS AND SENIOR MANAGEMENT

1.DUTY OF CARE
Board Members, senior management and members of committees must perform their duties in a manner they reasonably believe to be in the best interests of the corporation using the same degree of care, skill, caution and diligence that a person of ordinary prudence would use under similar circumstances. Decision-makers are required to make reasonable inquiries when analyzing contracts, investments, business dealings, and other matters.
An individual who is acting in conformance with this standard will:
• attend and participate in board meetings on a regular basis;
• attend and participate in committee meetings when the individual is a member of the committee;
• diligently read, review, and inquire about material that affects the corporation;
• keep abreast of the affairs and finances of the corporation; and• use independent judgment when analyzing matters that affect the corporation.

Decision-makers may rely on information provided by their employees, committees, attorneys, public accountants and qualified professionals as long as the decision-maker reasonably believes that the information provided is reliable. Decision-makers must use their own independent judgment when evaluating information. Individuals who fail to meet the prescribed standard may be personally liable to the corporation if their actions cause financial harm.Board members, trustees and senior management have a fiduciary responsibility when handling finances and investments. That simply means, they must exercise the degree of care, caution and diligence that prudent persons would exercise in handling their own personal investments and finances. Individuals who have or claim to have special knowledge or skills in the area of investment will be held to a higher standard. Fiduciaries who carelessly or negligently invest funds may be personally liable for any losses sustained.

2.DUTY OF LOYALTY
Board members and senior management must always perform their duties in good faith with the best interests of the organization in mind. This means that they must not seek to derive private gain from business transactions that involve the nonprofit corporation or advance their own interests at the expense of the corporation. Acts of self-dealing constitute a breach of fiduciary duty which may result in personal liability to the nonprofit organization. Board members, trustees, and senior management should avoid conflicts of interest and even the appearance of impropriety. Individuals who take advantage of corporate opportunities to make profits for themselves at the expense of the corporation may be liable for the profits they received at the organization’s expense."
https://www.attorneygeneral.gov/wp-content/uploads/2018/02/nonprofitbooklet.pdf




Can I maintain control of the non profit I create?


Every nonprofit corporation must have a president, a secretary and a treasurer. Although it is not necessary to use the above titles, every nonprofit corporation must have an individual who fulfills each of those roles and the same individual may fill multiple roles. In order to avoid the appearance of impropriety, it is best not to give one individual too much control over the corporation. Instead, power should be distributed among different officers or board members. A corporation may have as many officers with as many different titles as it deems necessary. https://www.attorneygeneral.gov/wp-content/uploads/2018/02/nonprofitbooklet.pdf





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