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Nonprofits--also known as 501(c)(3) corporations based on their federal tax code status--require many of the same liability protections as for-profit businesses. Although Florida doesn't require its nonprofits to hold any special insurance just for operating, it does require them to hold policies related to activities, such as employment and vehicle operation.
The Internal Revenue Service (IRS) is the federal tax collection authority within the United States. Part of the agency's responsibility is to monitor and collect revenues from organizations doing business within the U.S. The IRS has provided guidelines for organizations that conduct charitable work and do not seek a profit from it. These guidelines are listed in Section 501(c)(3) of the tax code.
Starting a 501(c)(3) corporation is no small task. Charitable organizations around the country struggle each year to meet their budget and funding goals as well as their mission statements. Thankfully, the legal aspects of starting a tax-exempt corporation are not that difficult to accomplish. With the legal work done, you can move on to accomplishing the work your nonprofit organization was created for.
