Why Form a Nonprofit Corporation?
Nonprofit organizations receive many benefits. Some examples are free banking, grants, tax exemption, tax deductions
for donors, discounts on mailing and other rates, and donations from stores.
If your group has the additional title of a private school, depending on the private school laws in your state you may
also receive additional benefits that protect your educational choices from outside influences. Private schools, especially
those that are NOT taking money from the state or the federal government, are able to operate without the red tape that other
schools often struggle through.
Incorporating your organization protects you and your members from possible lawsuits and liability exposures. Other
steps that we will describe here will help your organization to develop a solid structure, such as bylaws and the articles
of incorporation. Forms that you will develop and send with your IRS application will demonstrate the educational
purpose of your organization but will have the added benefit of helping your group to function more efficiently.
The key is to not let the "structure" overwhelm your organization. You want your "identity" to remain intact, while
you enjoy the benefits this status affords. The entire process will take about a year, start to finish, so you
will have plenty of time to "grow" into the changes OR change your mind.
So, let's take a look at where to start...