Nonprofit corporation: Difference between revisions
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{{broader|Nonprofit organization}} |
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A '''nonprofit corporation''' is any legal entity which has been [[Incorporation (business)|incorporated]] under the law of its jurisdiction for purposes other than making profits for its owners or shareholders. Depending on the laws of the jurisdiction, a nonprofit corporation may seek official recognition as such, and may be taxed differently from for-profit corporations, and treated differently in other ways. |
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== Public-benefit nonprofit corporations == |
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A [[public-benefit nonprofit corporation]]<ref>[http://codes.lp.findlaw.com/cacode/CORP/1/1/d2/2 California Code - Part 2: NONPROFIT PUBLIC BENEFIT CORPORATIONS [5110. - 6910.]</ref> is a type of [[Nonprofit organization|nonprofit]] [[corporation]] chartered by a [[state governments of the United States|state government]], and organized primarily or exclusively for [[Institution|social]], [[Educational organization|educational]], [[Recreation|recreational]] or [[Charitable organization|charitable]] purposes by like-minded citizens. Public-benefit nonprofit corporations are distinct in the law from [[mutual-benefit nonprofit corporation]]s in that they are organized for the general [[Public good|public benefit]], rather than for the interest of its members. They are also distinct in the law from religious corporations. |
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A [[religious corporation]] is a nonprofit corporation organized to promote [[religion|religious]] purposes. |
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Often these types of corporations are recognized under the law on a subnational level, for instance by a [[State (administrative division)|state]] or [[province]] government. The government agency responsible for regulating such corporations is usually the official holder of records, for instance a state [[Secretary_of_State_(U.S._state_government)|Secretary of State]]. Religious corporations are formed like all other nonprofit corporations by filing articles of incorporation with the state. Religious corporation articles need to have the standard tax exempt language the IRS requires. |
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Religious corporations are subject to less rigorous state and federal filing and reporting requirements than many other tax-exempt organizations, such as [[mutual benefit nonprofit corporation]]s, or [[public benefit nonprofit corporation]]s.<ref>[https://www.irs.gov/charities/churches/index.html Tax Information for Churches and Religious Organizations]</ref> Depending on the state in which they are located, they may also be exempt from some of the inspections or regulations governing non-religious groups performing the same services.<ref> |
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{{cite news | last =Henriques | first =Diana B. | title =Religion Trumps Regulation As Legal Exemptions Grow | pages = A1| publisher =NY Times | date =8 October 2006 }}</ref> |
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===Corporation sole=== |
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Religious corporations are permitted to designate a person to act in the capacity of [[corporation sole]]. |
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== Mutual-benefit nonprofit corporations == |
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A [[mutual-benefit nonprofit corporation]] or membership corporation, in the United States, is a type of [[nonprofit]] [[corporation]] chartered by a [[U.S. state|state]] [[U.S. state government|government]] that exists to serve its members in ways other than obtaining and distributing profits to them. Therefore, it cannot obtain [[Internal Revenue Service|IRS]] [[501(c)(3)]] non-profit status as a [[charitable organization]].<ref>[http://www.sec.state.vt.us/tutor/dobiz/forms/definitions/mutben.htm IRS page on Mutual Benefit Corporations]</ref><ref>http://www.sos.ca.gov/business/corp/pdf/articles/corp_artsnp.pdf</ref> |
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A mutual-benefit corporation can be non-profit or not-for-profit, but it still must pay regular corporate tax rates. A mutual benefit corporation will pay the same taxes as a regular for-profit corporation. (C corporation tax rates). Mutual benefit corporations must still file tax returns and pay income tax because they are not formed for a purpose that anyone in the world could benefit from. Mutual benefit corporations are formed for nonprofit purposes like managing a condo association, a downtown business district, or a homeowners association. |
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A [[utility cooperative]] is an example of an MBNC. |
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== See also == |
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* [[Civic society]] |
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== References == |
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{{reflist}} |
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== External links == |
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* [http://codes.lp.findlaw.com/cacode/CORP/1/1/d2/2 California Code - Part 2: NONPROFIT PUBLIC BENEFIT CORPORATIONS [5110. - 6910.] |
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* [http://www.sos.ca.gov/business/corp/pdf/articles/corp_artsnp.pdf Organization of California Nonprofit, Nonstock Corporations] |
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{{Charity}} |
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[[Category:Non-profit corporations|*]] |
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[[Category:Public benefit corporations]] |
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