What are the benefits of forming a nonprofit corporation?
2. What are the benefits of forming a nonprofit corporation?
Nonprofit corporations enjoy an exemption from corporate income taxes on profits from activities that are related to their organizational purpose. Also, a nonprofit is permitted to raise funds by receiving public and private grant money and donations from individuals and companies. (And the tax laws encourage people and businesses to donate money and property by allowing donors to deduct their contributions on their own tax returns.) Finally, structuring an organization as a nonprofit corporation protects its directors, officers, and members from personal liability for the corporation's debts and liabilities. For more good reasons to incorporate your association, see Five Reasons to Incorporate Your Nonprofit Association.