Quick reference for all the important terms you'll encounter on your nonprofit journey.
501(c)(3)The specific part of the federal tax law that allows charities to be tax-exempt and enables donors to deduct their contributions.Articles of IncorporationThe primary legal document filed with the state to create your nonprofit entity. Think of it as your nonprofit's "birth certificate."BylawsYour nonprofit's internal rulebook for management and operations. Covers meetings, voting, board roles, and decision-making processes.Board of DirectorsA group of people who govern your nonprofit, make major decisions, and ensure the organization stays true to its mission. The IRS typically wants at least 3 unrelated board members.Charitable Solicitation RegistrationPermission required by most states before you can ask for donations from their residents. Protects donors from fraud and ensures transparency.EIN (Employer Identification Number)Like a Social Security Number but for your organization. Free from the IRS and required to open a bank account and file tax forms.Form 990The annual information return that nonprofits must file with the IRS. It shows your revenue, expenses, programs, and governance. Public can view it.Form 1023The IRS application for 501(c)(3) tax-exempt status. There's also a simplified Form 1023-EZ for smaller organizations.Mission StatementA clear, concise description of what your nonprofit does and why it exists. This guides all your activities and appears in your legal documents.Registered AgentA person or company designated to receive official legal papers and state correspondence on behalf of your nonprofit. Required in most states.Tax-ExemptStatus that means your nonprofit doesn't pay federal income tax on revenue related to its charitable purpose. Achieved by getting 501(c)(3) determination from the IRS. Finished the guide?
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