Corporations formed for businesses engaged in charitable, religious, scientific, or educational activities that benefit the betterment of society are defined as nonprofit corporations.
No part of the income or profits is distributed among the officers or directors, except for legal business purposes or for any other promotional purpose of the corporation. Proceeds are exempt from taxes by the state of Nevada and are used for the organization’s non-profit purposes.
The constitution of the non-profit corporation is subject to the rules of total tax exemption. The corporation may have any number of directors, who need not be resident citizens of the state of Nevada; They have the provision to supplement a resident agent to handle the operation of the non-profit corporation. Transactions conducted out of state are also subject to a full tax deduction, as the current laws that apply to the nonprofit corporation are the state laws in which it is incorporated.
The main purpose of the Nevada non-profit corporation is to serve the public interest for non-commercial purposes. These topics fall into a broad classification of religion, research, art, charity, education, or even politics. They have to generate income for their operations which they have mainly obtained from public or private donors. These donations are exempt from taxes by state law. It is mandatory for the non-profit corporation to use its income, since all of these expenses are to serve the public interest.
The general perception of the Nevada nonprofit corporation is a relatively small organization that works for altruistic purposes. Local food banks, orphanages, disaster relief team clinics are some examples of these organizations. They typically have underpaid, dedicated managers and unpaid volunteers. Major universities and hospitals may also be nonprofit organizations. In addition to these organizations, there are also government-funded non-profit organizations. If you’re contributing to a Nevada nonprofit corporation, think beyond the tax deduction and know where your money is going.