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If you need your nonprofit (and if you think your nonprofit deserves) to be exempt from federal taxes (and maybe some other taxes, too), you must file with the IRS to be a “tax-exempt” group. Most larger organizations are required to publish their monetary experiences detailing their revenue and expenditure publicly.
The authorized type of nonprofits can vary too, however, the Inside Income Code differentiates two major sorts: the 501 (c) (3) and the 501 (c) (four) organizations. Once you kind a nonprofit corporation or register one to transact business in one other state (a process called overseas qualification ), you’re required to name a registered agent to your nonprofit.
14 Accordingly, many organizations, such as the Wikimedia Basis , 15 have shaped board-solely constructions. Officially incorporating your nonprofit is required for eventually receiving 501(c)(three) tax-exempt standing, accepting donations, and essentially functioning as a legal nonprofit organization.