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A nonprofit corporation is any legal entity which has been
incorporated under the law of its jurisdiction for purposes other than making profits for its owners or shareholders. Depending on the laws of the jurisdiction, a nonprofit corporation may seek official recognition as such, and may be taxed differently from for-profit corporations, and treated differently in other ways.
Public-benefit nonprofit corporations
A
public-benefit nonprofit corporation
A public-benefit nonprofit corporationCalifornia Code - Part 2: NONPROFIT PUBLIC BENEFIT CORPORATIONS _is_a_type_of_Nonprofit_organization.html" "title="110. - 6910./ref> is a type of Nonprofit organization">nonprofit corporation chartered by a state governments of the United States, state gover ...
is a type of Nonprofit organization">nonprofit
A nonprofit organization (NPO) or non-profit organisation, also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in co ...
corporation
A corporation is an organization—usually a group of people or a company—authorized by the state to act as a single entity (a legal entity recognized by private and public law "born out of statute"; a legal person in legal context) and r ...
chartered by a state governments of the United States, state government, and organized primarily or exclusively for Institution, social, educational institution, educational, Recreation, recreational or
Charitable organization, charitable purposes by like-minded citizens. Public-benefit nonprofit corporations are distinct in the law from
mutual-benefit nonprofit corporation A mutual-benefit nonprofit corporation or membership corporation is a type of nonprofit corporation in the US, similar to other mutual benefit organizations found in some of common law nations, chartered by government with a mandate to serve the mut ...
s in that they are organized for the general
public benefit
In philosophy, economics, and political science, the common good (also commonwealth, general welfare, or public benefit) is either what is shared and beneficial for all or most members of a given community, or alternatively, what is achieved by c ...
, rather than for the interest of its members. They are also distinct in the law from religious corporations.
Religious corporation
A
religious corporation
A religious corporation is a type of religious non-profit organization, which has been incorporated under the law. Often these types of corporations are recognized under the law on a subnational level, for instance by a state or province governme ...
is a nonprofit corporation organized to promote
religious
Religion is usually defined as a social system, social-cultural system of designated religious behaviour, behaviors and practices, morality, morals, beliefs, worldviews, religious text, texts, sacred site, sanctified places, prophecy, prophecie ...
purposes.
Often these types of corporations are recognized under the law on a subnational level, for instance by a
state
State may refer to:
Arts, entertainment, and media Literature
* ''State Magazine'', a monthly magazine published by the U.S. Department of State
* ''The State'' (newspaper), a daily newspaper in Columbia, South Carolina, United States
* ''Our S ...
or
province
A province is almost always an administrative division within a country or sovereign state, state. The term derives from the ancient Roman ''Roman province, provincia'', which was the major territorial and administrative unit of the Roman Empire ...
government. The government agency responsible for regulating such corporations is usually the official holder of records, for instance a state
Secretary of State. Religious corporations are formed like all other nonprofit corporations by filing articles of incorporation with the state. Religious corporation articles need to have the standard tax exempt language the IRS requires.
Religious corporations are subject to less rigorous state and federal filing and reporting requirements than many other tax-exempt organizations, such as
mutual benefit nonprofit corporation A mutual-benefit nonprofit corporation or membership corporation is a type of nonprofit corporation in the US, similar to other mutual benefit organizations found in some of common law nations, chartered by government with a mandate to serve the mut ...
s, or
public benefit nonprofit corporation
A public-benefit nonprofit corporationCalifornia Code - Part 2: NONPROFIT PUBLIC BENEFIT CORPORATIONS [5110. - 6910./ref> is a type of Nonprofit organization">nonprofit corporation chartered by a state governments of the United States, state gover ...
s. Depending on the state in which they are located, they may also be exempt from some of the inspections or regulations governing non-religious groups performing the same services.
Corporation sole
Religious corporations are permitted to designate a person to act in the capacity of corporation sole.
Mutual-benefit nonprofit corporations
A
mutual-benefit nonprofit corporation A mutual-benefit nonprofit corporation or membership corporation is a type of nonprofit corporation in the US, similar to other mutual benefit organizations found in some of common law nations, chartered by government with a mandate to serve the mut ...
or membership corporation, in the United States, is a type of
nonprofit
A nonprofit organization (NPO) or non-profit organisation, also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in co ...
corporation
A corporation is an organization—usually a group of people or a company—authorized by the state to act as a single entity (a legal entity recognized by private and public law "born out of statute"; a legal person in legal context) and r ...
chartered by a
state
State may refer to:
Arts, entertainment, and media Literature
* ''State Magazine'', a monthly magazine published by the U.S. Department of State
* ''The State'' (newspaper), a daily newspaper in Columbia, South Carolina, United States
* ''Our S ...
government
A government is the system or group of people governing an organized community, generally a state.
In the case of its broad associative definition, government normally consists of legislature, executive, and judiciary. Government is a ...
that exists to serve its members in ways other than obtaining and distributing profits to them. Therefore, it cannot obtain
IRS
The Internal Revenue Service (IRS) is the revenue service for the United States federal government, which is responsible for collecting U.S. federal taxes and administering the Internal Revenue Code, the main body of the federal statutory tax ...
501(c)(3)
A 501(c)(3) organization is a United States corporation, trust, unincorporated association or other type of organization exempt from federal income tax under section 501(c)(3) of Title 26 of the United States Code. It is one of the 29 types of 50 ...
non-profit status as a
charitable organization
A charitable organization or charity is an organization whose primary objectives are philanthropy and social well-being (e.g. educational, Religion, religious or other activities serving the public interest or common good).
The legal definitio ...
.
A mutual-benefit corporation can be non-profit or not-for-profit, but it still must pay regular corporate tax rates. A mutual benefit corporation will pay the same taxes as a regular for-profit corporation, with C corporation tax rates. Mutual benefit corporations must still file tax returns and pay income tax because they are not formed for a purpose from which anyone in the world could benefit. Mutual benefit corporations are formed for nonprofit purposes like managing a condo association, a downtown business district, or a homeowners' association.
A
utility cooperative
A utility cooperative is a type of cooperative that is tasked with the delivery of a public utility such as electricity, water or telecommunications to its members. Profit (accounting), Profits are either reinvested for infrastructure or distrib ...
is an example of an MBNC.
See also
*
Civic society
In the United Kingdom, a civic society is a voluntary body or society which aims to represent the needs of a local community. Some also take the role of an amenity society.
A civic society may campaign for high standards of planning of new buildi ...
References
External links
Organization of California Nonprofit, Nonstock Corporations
{{Charity
*
Public benefit corporations