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The Basics

Managing the Process

Managing the Money

Managing Assets

Managing People

Nonprofit FAQ

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The Basics I

  • What exactly is a nonprofit?
  • Do you really want to form a nonprofit?
  • What types of things do you need to do?
  • What should you think about before starting a nonprofit?

This information is for those who may be wondering whether or not to begin a nonprofit corporation or possibly join one. It explains what a nonprofit corporation is, gives tips about the obligations and life stages of the nonprofit and offers the types of things to consider (such as the purpose, size, tax-exemptions and others).

For additional details click Formation of the Nonprofit Section

The Basics

  • Nonprofit laws are listed in the Index of Chapter 1702 Ohio Revised Code, Nonprofit Corporation Law.
    http://onlinedocs.andersonpublishing.com/oh/lpExt.dll/
    PORC/da2c/dcc4?f=templates&fn=document-frame.htm&2.0#JD_1702
  • A nonprofit corporation helps and solely benefits other people or causes not the founder.
  • When in doubt, ask for help. If you have a legal question or problem contact an attorney, for tax or accounting issues contact a CPA and for insurance questions or problems, contact an insurance agent. Pay for professional help when you need it or think you need it. Professional help can prevent many problems from ever occurring.
  • Know the nonprofit's purpose (the reason the nonprofit is being formed), mission, and core values and follow them. If the work of the corporation changes, re-think and re-write the corporate purpose.
  • A nonprofit has a mission of public purpose (to help the community).
  • The amount of money given to a nonprofit can be deducted from tax obligations. This is one way the government helps the nonprofit public charities.
  • Public charities (nonprofits) do not have to pay taxes on their income.
  • The law requires that money made by the nonprofit be used to continue working for their mission (the public cause that the money is being raised for).
  • It is against the law to use funds collected for charitable purposes for any other use.
  • The government makes sure that money collected for a public purpose is only used for that purpose. This is important because the money should only be used for the nonprofit's mission and because that money gets special tax treatment.
  • In order to prove that the funds have been properly used for the nonprofit's purpose; the nonprofit must keep precise and accurate records.
  • Fill out and send all the necessary forms to government agencies (state, federal and local) correctly and on time. Any forms that are late, incomplete or missing paperwork cause delays in forming the nonprofit.

» Basics Continued

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