If you are planning to start your own nonprofit corporation or is just probably toying about the idea and exploring your options, a consultation with an attorney that specializes in non-profit corporation formation, administration and mergers like San Diego Nonprofit Attorney would be a good idea. Before taking on the plunge to a new venture such as organizing a nonprofit group and formalizing it to become a corporation, it is always important to be armed with the correct information and having an expert to explain it to you is necessary. At times, we may have that vision, mission or goal for establishing a nonprofit organization only to find out that the legal requirements are too much for a small group of people to work through. Besides, the legal terminologies, the documents to prepare and the registrations to file would need someone who could do this on a full-time basis and this is where firms like San Diego Nonprofit Attorney can prove that there are invaluable to this undertaking.
What are Nonprofit Corporations?
A nonprofit is an organization, entity or corporation who does not intend to make profits from their business and do not pay taxes for the money that they generate or receive. Nonprofit groups can be established in areas where there is a perceived need for services that are not provided for by the state or the government, such as charitable organizations who receive donations from donors and then distribute this to their target beneficiaries. These nonprofits operate on the donations from other people or organizations and businesses and do not make money out of it for their own consumption. The principle of which is that nonprofits are self-sustaining, they make sure that the money they gather go all into the services that they provide for their recipients depending on the advocacies that they have. Nonprofits can be found in almost every aspect of the human condition, in religion, science, military, child welfare, the homeless, in third world countries and a lot more.
Nonprofit Corporate Law
Since nonprofit entities are tax-free and do not really make profits, they are held accountable to the very stringent and strict rule of law in terms of their organization, administration, management, and corporation. There are laws that govern every aspect of their business dealings. Basically, these nonprofits operate just like any other business enterprise but are prohibited from making a profit out of their donations or money generated from fundraising activities. Thus, they need to file numerous tax documents that exempts them from paying taxes, reporting to the IRS their income and making sure that all of which are put to good use as indicated in their mission and vision and not into the pockets of the board of directors.
Without prior experience in nonprofits, navigating through the legalities of forming a nonprofit can be an insurmountable task and it is better to hire a nonprofit attorney like San Diego Nonprofit Attorney to help you through this. We may have the best of intentions in forming a nonprofit since we feel the need to help and address the difficulties that marginalized people experience in our society, but without help from a nonprofit attorney, this would only remain a dream rather than becoming a reality.
Who To Hire?
Just as there are many aspects to our lives and our existence in society, there are also as many laws that govern us, thus it makes sense to hire an attorney that is an expert in whatever it is that you need. So for your nonprofit needs, the best candidate for the job would be an attorney that specializes in nonprofit corporate law like San Diego Nonprofit Attorney. Make sure that the firm you hire has an excellent track record and is able to provide you with services that will make the establishment of your nonprofit go smoothly.
Look for a firm that offers not only legal advice and representation but also someone who can prepare the documents needed for your nonprofit to become a legal entity such as your articles of incorporation, bylaws, the board of director formation, resolutions, policies, ethics, conflict of interests and members/volunteers. Also, look for a firm that will assist you in the preparation and filing of IRS forms, franchise tax board forms, and other tax forms. You would also want a firm you can trust and will be available for your every need, you should be able to have open communication with them and that they are able to help you based on your needs and goals for the nonprofit.
Value Added Service
There are many nonprofit attorneys out there who claim to be experts on this field and may even have the credentials to vouch for it. However, do make sure that the firm you hire has had extensive experience in this matter. Try to find out how many nonprofits are their clients and try to ask for their honest feedback regarding the services of the firm. A truly excellent firm would not only help you’re nonprofit get started but rather help you achieve success. Thus, it is important to be on the lookout for value-added services that sets them apart from the usual run of the mill firms. One of which is the assistance and training they offer to make sure that the nonprofit board of directors is cognizant of the intricacies of the legal system and the legalities that govern nonprofits.
Aside from training and assistance, the firm should also provide a periodic corporate compliance review of the nonprofit years after it was organized. This would ensure that the organization is in compliance with state and federal laws; that the performance and goals of the organization are still in concurrence with the mission and vision of the organization that the actions of the board of directors are also in accordance with the policies of the organization.
In choosing the best nonprofit attorney, keep in mind that you want someone who would want to see you succeed not just for the present but for years to come.