Types of Non Profit Corporations in Oregon
A nonprofit corporation is a business association organized for the purpose of achieving a societal aim, rather than to make a profit. Nonprofit corporations registered in Oregon receive a variety of benefits, including exemption from paying federal and state income tax, discounts on sending bulk mail, and eligibility for state, federal and private charitable grants. Oregon law recognizes three types of nonprofit corporations: mutual benefit corporations, public benefit corporations and religious corporations.
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Requirements
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To qualify as an Oregon nonprofit corporation, a corporation must first be chartered as a corporation with the Corporation Division of the Oregon Secretary of State. After chartering, the corporation must obtain 501(c)(3) status by filing Form 1023 with the Internal Revenue Service. Filing Form 1023 requires a corporation to disclose all sources of income, expenses and internal financial information. Oregon law also requires a charitable organization to register with the Charitable Organization Section of the Oregon Department of Justice and file an annual report with the agency.
Mutual Benefit Corporations
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A mutual benefit corporation is a charitable organization set up to confer benefits on members of the corporation. Mutual benefit corporations are typically ineligible to receive 501(c)(3) status from the IRS, but a registered Oregon mutual benefit corporation is eligible to receive exemptions from paying Oregon state income tax and can receive state charitable grants. Examples of Oregon mutual benefit corporations include trade organizations and veterans groups.
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Public Benefit Corporations
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A public benefit corporation is a charitable organization designed to confer a benefit on the general public. Public benefit corporations are eligible to receive 501(c)(3) status from the IRS. Oregon law requires public benefit corporations to include a clause in their Articles of Incorporation stating that if the corporation were to dissolve, all assets owned by the corporation must be distributed to a different charitable organization. School foundations, scientific foundations, social service organizations and non-religious charities are all examples of Oregon public benefit corporations.
Religious Nonprofit Corporations
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A religious nonprofit corporation is a charitable organization designed to achieve a religious purpose. The IRS permits religious nonprofit corporations to receive 501(c)(3) status. Religious nonprofit corporations include organizations that operate churches and synagogues, as wells as organizations that seek to achieve a religious purpose, such as religious outreach programs.
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