Non-Profit Entities

Legal Status

Non-profit corporations are often recognized as tax exempt organizations under the Internal Revenue Code because they provide valuable services to our community and those in need. The services non-profits can provide are too numerous to list here but they include human health, welfare and educational organizations, spiritual and religious organizations, and animal rights organizations. The most common form of non-profit we deal with on a daily basis is a 501(c)(3). There are many advantages to tax exempt 501(c)(3) status but the biggest might be encouraging your donors to contribute money to your organization. Blehm Law can help attain your goals of helping and protecting those who need us most, including animals. To learn more, contact a non-profit business attorney.

Management

Management of the non-profit corporation is vested in a board of directors and the day to day business operations are handled by officers. Arizona non-profit corporations are not required to have members. Often, non-profit organizations create an advisory committee comprised of members of the community with an interest in the non-profit’s purpose. Such a committee need not have management or decision making authority but can be invaluable in helping to shape the direction of the non-profit and enhance its credibility, reputation and visibility in the community. To learn more about managing your non-profit, contact a non-profit business attorney.

Profit and Loss

As a non-profit, there are no profits and losses to distribute to members. In fact, none of the non-profits income is to inure to the benefit of directors, officers or members. When applying for 501(c)(3) status, the non-profits articles of incorporation must also ensure that any assets remaining after dissolution of the non-profit corporation are to be distributed to other tax exempt organizations. An easy way to lose tax exempt status is to treat your non-profits finances as if they were your own. To discuss your non profit’s goals with a business attorney, contact Blehm Law to speak to a non-profit business attorney.