Nonprofits: Questions you should consider before setting up a nonprofit

Here are some questions that you should ask when setting up a nonprofit:

1.Entity Structure:

• What entity structure will you use? (ex: Corp)
• Does your incorporation document have proper nonprofit “purpose” language?
• Does the incorporation document have the IRS-required clauses?some text
  • Activities limited to one or more exempt purposes
  • Not empowered to engage in activities that are not charitable
  • Proper dissolution language‍

2. Nonprofit Bylaws:some text

• Are the rules simple, and yet effective?
• Will you and the rest of your organization (including the board) follow them?
• Common considerations:some text
  • How many individuals will you have on your board?
  • Will there be an employee CEO or a volunteer staff?
  • Will you implement term limits?
  • Are there going to be nonprofit board committees?

Federal 501(c) Tax Exemptionsome text

• Do you have a nonprofit business/programing plan?
• Do you have a 4-year budget?
• Are you an “EZ” charity (annual budget less than $50,000, among other requirements)?
• Will you be sending funds internationally?
• How to you intend to fundraise?
• Will any of your directors be related?
• 4. Other (Often Required) Nonprofit Corporate Documentssome text
  • Conflict of Interest policy
  • Whistleblower policy
  • Internal Control policy
  • Funds Management policy
  • Restricted Funds policy
    

Case-by-Case Review

At Zecca Ross Law Firm P.C., we understand the importance of conducting a thorough and meticulous case-by-case review when assisting founders in navigating these complex decisions. Our team provides comprehensive guidance and support to ensure that founders are well-informed and empowered to make the best choices for their ventures.

Whether it involves setting up a nonprofit, Zecca Ross Law Firm P.C. is equipped to break down the intricacies of its critical issues. Our goal is to help founders successfully navigate the legal landscape and achieve their business objectives.

If you have any questions or require further clarification on the topics discussed in this article, we invite you to reach out to Zecca Ross Law Firm P.C. at contact@zeccaross.com to schedule a complimentary 15-minute consultation. Our experienced team is here to provide the guidance and expertise you need to make informed decisions and set your venture up for success.

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