Non Profit

Non-profit organizations or non-profit corporations are set up to provide services to either members or the general public. There are two primary categories: 501c(3) and all the others. 501c(3) non-profits serve the general public and donations to their organization are tax exempt. Contributions to the other non-profits are not tax exempt.

Non-profits have annual reporting requirements, must have a board of directors with outside board members, and have major restrictions on their revenue activities.

If your goal is to contribute a percentage of your profits to a non-profit or charitable cause, you are not a non-profit; you are a regular (but generous) business which gives charitable contributions.