Non Profit Corporations
Corporate Credibility, LLC has worked with a number of different kinds of non-profits from religious organizations to sports teams. What makes us unique is that we work
hand in hand with our non-profit clients to ensure that they know the ins and outs of the IRS requirements so that our clients submit their non-profit paperwork, it is correct
and approved by the IRS.
The formation of a non-profit corporation can be complex and time consuming. Despite popular belief, non-profits are highly regulated and need to be set up and maintained
to ensure the non-profit status.
Setting up a non-profit corporation is a two step process. First is the initial filing with the State where the Non-Profit is located. After the filing is complete, there is
a form 1023 that needs to be submitted and approved by the IRS. This 1023 form is a mini-business plan which outlines the function, operation, accounting and administration
of this new non-profit. This plan has to be submitted to the IRS with a rather large filing fee for review.
The main concern the IRS has in the reviewing process is that the money is not a “front” for a profit making venture and has a clear function that qualifies as a non-profit.
In addition, if the non-profit is dissolve, the company must distribute its assets to a similar non-profit organization.
Non-profit DOES not mean that you can not make money, however all the profits do need to go back into the organization. It does need to follow very strict tax reporting
guidelines and just recently the IRS removed thousands of non-profits status from a variety of companies who failed to meet their requirements.