What Is an Article of Incorporation for a Non-Profit?
Articles of incorporation are filed with a state government. Once a group has filed its articles of incorporation, it becomes a legal entity. Incorporating has several benefits. Among them are limiting personal liability for the leadership and staff from lawsuits against the nonprofit's operations. Incorporation also allows nonprofit groups to apply to the Internal Revenue Service for tax exemption. In some states, articles of incorporation are called a "certificate of incorporation."
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State Information
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Requirements for filing articles of incorporation vary by state. Often, a department within the secretary of state's office handles nonprofit incorporation. These offices will send a packet of information about the incorporation process, along with sample documents that guide individuals through the process, to those requesting them, or the information can be downloaded from their websites. Contact information for secretaries of state can be found at the National Association of Secretaries of State website.
Basic Requirements
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Although requirements vary among states, there are some basic requirements for incorporation. Those are that an organization name that is legally available in the state be chosen; the name(s) of the person(s) organizing the corporation and the purposes for which it is being formed be provided to the state, as well as the number and names for the initial board of directors and the initial director or head of the group; organizers must state that no part of the organization's assets will benefit members; and organizers must provide the location of the organization's office (where legal papers can be served, if necessary).
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Other Requirements
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As part of the process of being incorporated, an organization needs to choose a board of directors; develop vision and mission statements to guide its work; and establish board policies and bylaws. Bylaws are a document that describes how an organization will be managed. Requirements for bylaws are determined by the state in which an organization incorporates.
Notification
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Once an organization receives notification that its articles or certificate are on file with the state, the organization is a legally recognized nonprofit corporation, eligible to apply for tax-exempt status with the Internal Revenue Service.
Legal Advice
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Although an individual can complete the incorporation process by himself or herself, it is always best to receive advice from a lawyer. Some filing fees apply.
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