Are you thinking about establishing an organization that will benefit your community? On behalf of the entire Lake of the Ozarks, Lebanon, and Tuscumbia communities, the team at Deputy & Mizell Law, LLC would like to thank you for your efforts! Our mid-Missouri attorneys are here to help by providing guidance on setting up a nonprofit organization. Here are some quick facts (and unique advantages) to keep in mind as you move forward.
What Counts as a Nonprofit Organization?
Nonprofit organizations are exactly what their name implies: they are organizations designed to give all of their proceeds back to their community (they don’t keep any of the profit for themselves). Nonprofit organizations require some hefty paperwork to get everything established in the beginning, but the benefits of incorporating your business as a nonprofit are well worth the extra effort.
In order to be recognized as a nonprofit organization and receive the associated benefits, you must apply for 501(c)(3) status. Follow this link to learn more about applying for 501(c)(3) status.
Advantages of a Nonprofit Organization
Nonprofit organizations are tax exempt. Your organization will not be subject to Missouri income tax or Missouri property tax.
Nonprofit organizations can accept grants and donations. Individuals and companies will be able to give you funds in support of your cause.
Donations to nonprofit organizations are tax deductible. As an added incentive to donate, generous companies and individuals will be able to deduct their donations on their tax returns.
Nonprofit personnel are not personally liable for the organization. If your nonprofit incurs any debts or liabilities, none of your directors or personnel will be personally responsible. Your personal assets will be protected.
Nonprofit organizations are more credible. If you have taken the time and expended the necessary energy to incorporate your organization as a 501(c)(3), you have demonstrated that you care about your cause and are willing to do what’s necessary to help your organization succeed.
Good Luck With Your Nonprofit!
Your local Lake of the Ozarks attorneys wish you the best of luck with your new nonprofit organization. If you have questions or need any assistance as you get started, feel free to reach out to one of the Deputy & Mizell team. We are here for you!
Contact Deputy & Mizell, LLC