The Nonprofit Corporation Act is a legal document that contains the rules and regulations of a nonprofit. The Nonprofit Corporation Act explains each rule and byline that a nonprofit business must follow in order to be considered a nonprofit organization. Businesses use the nonprofit corporation act to apply for nonprofit status within the state the nonprofit will be located.
Through the nonprofit corporation act, businesses seeking a nonprofit status must apply for a permit within the state where they want to establish their nonprofit business. The officer of the board of directors, director(s) or the incorporator must fill out and sign the documents, then submit the documents to the secretary of state.
The nonprofit must state whether it is a public or religious institution and include the name of the nonprofit institution and address. When the nonprofit is incorporated under the state laws, it must select at least three directors or name a board of directors who must complete the staff by appointing officers and adopting the nonprofit bylaws. The nonprofit can use the rules stated in the nonprofit corporation act and make up their own rules that will govern their organization.
The bylaws of the nonprofit adopt must state how it will hold meetings and vote for members. A nonprofit cannot charge a fee for membership. Members who resign must fulfill their duties and commitments to the organization and the nonprofit that suspends or expel members has to follow the written guidelines of the nonprofit.
The nonprofit corporation act states that nonprofit businesses must hold annual and regular meetings as stated in the nonprofit bylaws. The nonprofit business must keep minutes of the meeting sand financial records.
Nonprofit businesses that have been incorporated can re-certify, re-register their business name, dissolve or merge with another nonprofit business by filing the nonprofit corporation act again with the secretary of state.
Nonprofit businesses that have been incorporated must file Form 1023 to be considered for 501(c)(3) tax-exempt by the Internal Revenue Service (IRS). Nonprofits that make less than $5,000 a year are automatically tax-exempt.
individuals seeking to form a nonprofit must use the nonprofit corporation act as a first step. The individuals can use the act as guide to help form their nonprofit and make rules their nonprofit will follow when conducting business.