Anarchists' guide to nonprofit startup law

| | | Comments (0) | TrackBacks (0)

The infoshop movement is an anarchist news distribution network.  Yesterday the movement's online hub--infoshop.org--featured an interesting article forming a local infoshop center, with a particular reference to obtaining 501(c)(3) status in the U.S.  There's some imprecision in the article's legal language and I don't endorse all the advice, but the article has a lot of good stuff.   Below, some key points from the piece worth highlighting for all nonprofit organizations:

  • The terms "nonprofit" and "501(c)(3)" are not synonymous.  "Nonprofit" refers to a category of legal status under state law (for example, a nonprofit as a opposed to a for-profit corporation), while 501(c)(3) refers to an organization's status under federal law as a charity exempt from federal income tax. 
  • Not all nonprofits are charities.  Not all tax-exempt organizations are charities.  More on this soon!
  • It's all too easy to get distracted by complex legal issues at start-up, to the point of not getting anything done.  
  • However, incorporation is typically advisable, even necessary, if your organization needs to get a bank account or sign any other contracts.  Filing basic articles of incorporation can be done quickly with the assistance of a competent lawyer or incorporation service.
  • The details of your organization's structure will be spelled out in its bylaws.  Tony Mancuso's Nolo book on forming a nonprofit organization has a decent set of model bylaws. 
  • Obtaining recognition as a 501(c)(3) organization requires a fair bit of time and effort as well as specialized knowledge about the language of tax law. 
  • Your organization might be able to find an existing recognized 501(c)(3) that will serve as a "umbrella" or "fiscal sponsor" for purposes of federal tax-exemption and deductible gifts.  For an example of such an umbrella program in New York, check out Fractured Atlas or the Tides Center
  • An effective organization "is one that is built on healthy human relationships between the participants, not on some perfect organizational plan committed to paper."  Amen! 

Categories:

0 TrackBacks

Listed below are links to blogs that reference this entry: Anarchists' guide to nonprofit startup law.

TrackBack URL for this entry: http://uncivilsociety.org/mt/mt-tb.cgi/23

Leave a comment

About

  • Jeff Trexler
  • Facebook
  • Twitter
  • BofG

Tag Cloud

Categories

Sign In

www.flickr.com
This is a Flickr badge showing public photos from trexfiles23. Make your own badge here.

July 2008

Sun Mon Tue Wed Thu Fri Sat
    1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31