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Not for profit org vs. not for profit corp.

Posted to: Community - General by Sebastian Herrera (CCAL30) (333), Fri, 24 Aug 2007 12:48:21 PDT
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Dear Friends,

Does anyone know the difference in the US between a not for profit corporation and a not for profit organization?. http://en.wikipedia.org/wiki/Not-for-profit_corporation and http://en.wikipedia.org/wiki/Non -profit_organization . I ve been checking and the difference to register one instead of the other are very important in terms of fees eg.: 500usd for the first type and 2500 usd for the second one I´m interested to know about this because I need to register a not for profit in the US territory. But I need to know if in terms of the 501 (c3) taxable conditions is the same with the first one or the second one, in order to give to contributors, donation certificates for the IRS Agency. Any help will be appreciated. best regards, sebastian



By Dav in Phoenix (CCAL30) (3194), Fri, 24 Aug 2007 22:03:08 PDT
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Hi Sebastian. If you are in the US I would go to any large bookstore or library and there are self-help law books that explain this. Or you can order online from Nolo Press or someone else.

Have you considered buying an existing 501(c)3 corp? I bet there are thousands of dormant ones for every conceivable charitable purpose.


By Sebastian Herrera (CCAL30) (333), Sat, 25 Aug 2007 10:34:12 PDT
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Thank you so much Dav, I'm not in the US so my only possibility is to pay to a company formation service (in delaware or similar) in order to register the Not for profit. On the other hand, do you know where I can find a website or similar information services for existing 501 (c3) for sale?

thank you so much. sebastian

Dav in Phoenix (CCAL30) said:

Hi Sebastian. If you are in the US I would go to any large bookstore or library and there are self-help law books that explain this. Or you can order online from Nolo Press or someone else.

Have you considered buying an existing 501(c)3 corp? I bet there are thousands of dormant ones for every conceivable charitable purpose.


By CM M~a~q~o~w~a~n (2394), Sat, 25 Aug 2007 10:55:48 PDT
Comment feedback score: 0

Hi Sebastian,

All forms of corporation must have owners and/or members. The non-profit form of a corporation is also called a "non-stock corporation".

An organization need not have owners or members. If an organization does have owners or members it can still refer to itself as an organization and then the difference is simply one of semantic preference.

For tax purposes, to the best of my knowledge they are treated identically at the federal level.

Regarding fees, you will find a lot of differences at the state level. Delaware and Nevada are very low cost jurisdictions. Delaware has a good network of agents who will process your paperwork for a small fee.


By Sebastian Herrera (CCAL30) (333), Sat, 25 Aug 2007 17:26:47 PDT
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Thank you so much!. I've been in contact with an agent from delaware and during last thursday they sent me the email that you can find below telling me that it was the same. But I was a little bit confuse because on the internet I found lots of not for profit org but only a few not for profit corp. Thank you so much for the explanation.

Email: Sebastian,

Non profit: US$375 + 5% for PayPal payment, yes.

Your RA fees (US$100/year) and State fees (US$65/year) will be due January 2008.

Registered to one person, is fine.

Yes....your Certificate of Formation can have IRS terms. See below. You may place your order here: and please remind me that you want it formed Non Profit with IRS terms.

THIRD: The purposes for which YOUR COMPANY NAME is organized are exclusively religious, charitable, scientific, literary, and educational within the meaning of section 501(c)(3) of the Internal Revenue Code of 1986 or the corresponding provision of any future United States Internal Revenue law. Notwithstanding any other provision of these articles, this organization shall not carry on any activities not permitted to be carried on by an organization exempt from Federal income tax under section 501(c)(3) of the Internal Revenue Code of 1986 or the corresponding provision of any future United States Internal Revenue law. Upon the dissolution of the corporation, assets shall be distributed for one or more exempt purposes within the meaning of section 501(c)(3) of the Internal Revenue Code, or corresponding section of any future federal tax code, or shall be distributed to the federal government, or to a state or local government, for a public purpose. Any such assets not so disposed of shall be disposed of by the Court of Common Pleas of the county in which the principal office of the corporation is then located exclusively for such purposes or to such organization or organizations, as said Court shall determine which are organized and operated exclusively for such purposes. This Corporation shall be a nonprofit corporation.

CM M~a~g~o~w~a~n said:

Hi Sebastian,

All forms of corporation must have owners and/or members. The non-profit form of a corporation is also called a "non-stock corporation".

An organization need not have owners or members. If an organization does have owners or members it can still refer to itself as an organization and then the difference is simply one of semantic preference.

For tax purposes, to the best of my knowledge they are treated identically at the federal level.

Regarding fees, you will find a lot of differences at the state level. Delaware and Nevada are very low cost jurisdictions. Delaware has a good network of agents who will process your paperwork for a small fee.


By Haney Armstrong (CCAL30) (1784), Mon, 27 Aug 2007 09:36:31 PDT
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Here's a "cause" on Razoo with info about starting a non-profit.


By Sebastian Herrera (CCAL30) (333), Thu, 30 Aug 2007 08:00:31 PDT
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thank you so much Haney. regards sebastian

Haney Armstrong (CCAL30) said:

Here's a "cause" on Razoo with info about starting a non-profit.


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