Benefits of a Non Profit

Nonprofits offer certain benefits that regular for-profit corporations lack. Major benefits include the following:

• Limited liability protection. Directors, officers, and members usually are not held personally liable for the organization’s debts and activities. Incorporating your nonprofit can help protect your assets.
• Tax-exempt status. Nonprofits can apply for both federal, state, and local  tax-exempt status, allowing them to devote a larger proportion of their resources to achieving their goals.
• Access to grants. Some nonprofits are eligible to receive public and private grants or government funding.
• Tax-deductible donations. Donors can make tax-deductible donations to most nonprofit corporations.
• Low cost postage rates. Many nonprofits are eligible for reduced postage rates--approximately 40% lower than the regular rate for commercial mailers.

With Rocket Lawyer, you can create, store, and customize all the legal forms for your non profit. Form your non profit with our free incorporation service and enjoy the many benefits of a nonprofit organization.

Laws on this topic may vary from state to state. This content is not meant to provide you with complete information and it is not intended to be legal or tax advice. It is recommended that you consult with your own attorney, accountant or other advisor regarding your specific situation.