Business usually brings to mind the hustle and bustle of a suit-clad corporate world where the bottom line is king and the focus is always on how to maximize profit, for the owners of the company and also for its shareholders. But there is another part of the business world that aims instead to address perceived social problems or other concerns that affect some or all of a particular community. Nonprofit organizations are committed to this agenda, and as part of that commitment they are legally obligated to use surplus profits in support of their goals instead of distributing them among shareholders.
If you are considering the formation of a nonprofit entity or would like to learn more about the legal requirements that pertain to the creation and direction of such an enterprise, we can help. Contact the Des Moines business lawyers of LaMarca Law Group, P.C., at (877) 327-2600
Some Basic Nonprofit Requirements
One of the elements of nonprofit status that most people have at least a basic grasp on is that an entity that gains 501 (c)(3) status is considered tax-exempt and therefore is freed from some of the tax implications that face other enterprises. Typically, charities, labor unions, arts organizations, and similarly conceived agencies function as nonprofit organizations, and to attain this they must meet established standards for the following:
- Provisions for supervisory and managing structure
- Transparency and audit accountability
- The tax status of all donors
- The tax status of the organization itself
- Economic activities and functions
Having a great idea for a means to help the community can only carry your organization so far. Obtaining legal guidance throughout the formation and function of your nonprofit enterprise is absolutely essential. Contact the Des Moines business lawyers of LaMarca Law Group, P.C., at (877) 327-2600.