12 terms

Nonprofit Basics

What is a Nonprofit?
A charitable organization that is created for educational, scientific, or social causes
Nonprofit ≠ No Profit
Nonprofits organizations are encouraged to earn more than they spend each year. It just means no individual can benefit from that profit.
The first Nonprofit
Harvard College in 1636
Federal law affecting Nonprofits
Revenue code as administered by the IRS
State law affecting Nonprofits
Chapter 181 of the Wisconsin State Statutes (other states have their own nonstock or nonprofit laws)
Other laws affecting Nonprofits
Your organization's bylaws
Why have a Board
You have to. It's the law
Board of Directors
People who are given/assume the fiscal and legal responsibility for a Nonprofit
People who assume the responsibility for day-to-day operations
Articles of Incorporation
Document creating the organization and identifying its reason and method for existence. Filed with the state where the organization is incorporated.
Basic internal document describing how the organization will function and how decisions will be made.
Rob's definition of governance
Governance involves taking an organization in your care by providing a mixture of leadership, oversight, and support.