4 Reasons to Incorporate your Nonprofit Association:
- Nonprofit Corporations enjoy an exemption from corporate income taxes on profits from activities related to their purpose.
- Qualifying for a tax exemption is harder for associations than for corporations. Without tax-exempt status, your group is unlikely to qualify for many public and private grants.
- Donors can deduct gifts to your group on their federal and state tax income returns once your organization becomes a tax-exempt nonprofit corporation.
- Members and directors of nonprofit corporations are generally protected from personal liability, meaning that their own money, houses, and cars aren't at risk. That's not true for an unincorporated association.