California Nonprofit Corporation Act

Many nonprofit corporations in the State of California help homeless animals.

The California Nonprofit Corporation Act is a law by which most nonprofit corporations in the state are governed. When first forming a nonprofit corporation in the State of California, one would need to file a series of documents with the Secretary of State's Office. The documents needed are the articles of incorporation, and are the first step to forming a nonprofit corporation in California.

Articles of Incorporation

Paperwork required in the Articles of Incorporation by the California Nonprofit Corporation Law include the name of the nonprofit corporation, a statement of the specific purpose for the nonprofit corporation, the name and address of the agent and the name and address of each incorporator. Information regarding the agent is necessary for the service of process.

Fallback Provisions

The California Nonprofit Corporation Act also has fallback provisions. These fallback provisions detail how the corporation operates. Some provisions can automatically apply while some can be modified in either the Articles of Incorporation or in the Bylaws.

Bylaws

Bylaws, according to the California Nonprofit Corporation Act law, are the outline of the rules and procedures. Included in the bylaws is information on the directors such as the number, qualifications, manner of election, powers, duties and compensation of the directors. Qualifications for membership, the different classifications for members, the manner of admission, withdrawal, suspension and expulsion of members and information pertaining to the appointment and authority of committees are also included in the bylaws. Rights and privileges of members including property and voting rights are in the bylaws.

Board of Directors

According to the California Nonprofit Corporation Act law, the nonprofit corporation must hold meetings with the Board of Directors. The corporation must also file an annual report of the officers and directors with the Secretary of State's Office. At the first meeting of the Board of Directors the bylaws are defined. It is the responsibility of the Board of Directors to ensure the nonprofit corporation files with the Secretary of State the following: the articles of incorporation, any necessary fees (vary according to type of nonprofit corporation) and the minimum franchise tax. Fees may vary according to the type of nonprofit corporation as there are five types; educational organization, literary purpose, scientific organization, religious group and charitable purpose nonprofit corporation.

Benefits

One of the main reasons for a nonprofit corporation to file with the Secretary of State and to be in compliance with the California Nonprofit Corporation Act law is to qualify for Federal 501(c)(3) status. Qualifying for nonprofit status allows an organization to file for tax-exempt status with the IRS.

References

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