A nonprofit organization is a business organized and operated for a purpose other than just generating a profit. These legal entities are led by a volunteer board of directors who are unpaid for their roles as elected leaders of the organization. Nonprofits declare a mission and vision for themselves and file bylaws to establish an organizational structure. As of 2022, there are currently 29 types of nonprofit organizations in the federal law of the United States according to the Internal Revenue Code Section 501 (c). These organizations can receive unlimited contributions from individuals, corporations, and unions and many contributions to them are considered tax deductible by businesses, foundations, and individuals.

We bring over two decades of front-line nonprofit experience directly to you. We specialize in coaching, consulting, and business formation services in all 50 states of the USA. We guide our clients through every step – from incorporation, to tax exemption, and through their first year in business – all by providing clear and simple guidance and solutions. 

No. Protege is here to help you with the entire process of forming your nonprofit business. Mistakes in your paperwork can be costly or extend the time in which you receive your status by months. Our nonprofit business formation service includes all government agency filings and the paperwork you need to get your nonprofit up and running. All filing fees, taxes, and formation costs are included in all our packages.

Maybe. Each state is unique and has its own specific forms and rules. The conversion itself (not including the length of time it takes to obtain 501(c) status) is a lengthy process, and can take several months depending on state processing times. Also, conversions tend to have significant tax implications, so it is best to speak with your CPA for more information on if a conversion is even a benefit to you. Starting a new nonprofit is easier, faster, and more economical than doing a conversion.

Nonprofits can be more challenging than a traditional for-profit business because they are less familiar and governed by an added halo of regulation. You can expect to be responsible for similar tasks such as administration, accounting, managing volunteers and staff, choosing and maintaining insurance policies, negotiating rent with landlords, board meetings, and much more. The positives far outweigh the negatives but just like a for-profit business, nonprofits need time, talent, and treasure to thrive. Luckily, all of our services include personalized coaching and consulting to help you navigate through the ups and downs. 

Nonprofits are only for people who have a strong vision and the will to change the world. You have to be self-driven, curious, and a quick learner to build an organization. We help our clients understand the details of running a real world nonprofit, and we draw on two decades of our experience creating organizations, coaching them as startups, and counseling them into their maturity. We also help our clients to clearly define their mission, vision, and values so a business model and business plan can be discovered and implemented. 

As of 2022, there are 29 different types of nonprofit organization. They are: 

– 501(c)(1): Corporations Organized Under Act of Congress, including Federal Credit Unions and Nations Farm Loan Associations. 

– 501(c)(2): Title-holding Corporations for Exempt Organizations. 

– 501(c)(3): Religious, Educational, Charitable, Scientific, Literary, Testing for Public Safety, to Foster National or International Amateur Sports Competitions, or Prevention of Cruelty to Children or Animals Organizations.

– 501(c)(4): Civic Leagues, Social Welfare Organizations, and Local Associations of Employees. 

– 501(c)(5): Labor, agricultural, and Horticultural Organizations.

– 501(c)(6): Business Leagues, Chambers of Commerce, Real Estate Boards.

– 501(c)(7): Social and Recreational Clubs.

– 501(c)(8): Fraternal Beneficiary Societies and Associations.

– 501(c)(9): Voluntary Employee Beneficiary Associations.

– 501(c)(10): Domestic Fraternal Societies and Associations.

– 501(c)(11): Teachers’ Retirement Fund Associations.

– 501(c)(12): Benevolent Life Insurance Associations, Mutual Ditch or Irrigation Companies, Mutual or Cooperative Telephone Companies, and Like Organizations.

– 501(c)(13): Cemetery Companies.

– 501(c)(14): State-Chartered Credit Unions, Mutual Reserve Funds.

– 501(c)(15): Mutual Insurance Companies or Associations. 

– 501(c)(16): Cooperative Organizations to Finance Crop Operations. 

– 501(c)(17): Supplemental Unemployment Benefit Trusts. 

– 501(c)(18): Employee Funded Pension Trust (created before 25th, June, 1959).

– 501(c)(19): Post or Organization of Past or Present Members of the Armed Forces.

– 501(c)(20): Group Legal Services Plan Organizations.

– 501(c)(21): Black Lung Benefit Trusts.

– 501(c)(22): Withdrawal Liability Payment Fund.

– 501(c)(23): Veterans Organizations.

– 501(c)(24): Section 4049 ERISA Trusts.

– 501(c)(25): Real Property Title-Holding Corporations or Trusts with Multiple Parents.

– 501(c)(26): State-Sponsored Organization Providing Health Coverage for High-Risk Individuals. 

– 501(c)(27): State-Sponsored Workers’ Compensation Reinsurance Organization. 

– 501(c)(28): National Railroad Retirement Investment Trust. 

– 501(c)(29): Qualified Nonprofit Health Insurance Issuers. 

501(c)(3) tax-exempt organizations are corporations that are organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes that are identified by the IRS as tax exempt purposes. None of the earnings may be distributed to the benefit of any private shareholder or individual. Donations to a 501(c)(3) organization are tax- deductible for businesses, foundations, and individuals. They are also prohibited from conducting a political campaign or activities to interfere in elections for public office. 

A 501(c)(4) is a social welfare organization that must be engaged in promoting the common good and general welfare of the people within a community. These organizations are allowed to participate in politics, engage in direct lobbying, grassroots lobbying, and engage in contact with certain state and federal officials. Contributions to 501(c)(4) organizations are not considered tax-deductible. 501(c)(4) organizations must also register with the Clerk of the House or Secretary of State depending on their lobbying activities. As of 2007, the Supreme Court determined that 501(c)(4)’s, 501(c)(5)’s, and 501(c)(6)’s can broadcast electioneering communications that mention a candidate’s name 60 days before a primary or 30 days before a general election. 

The national average in the United States for starting a nonprofit organization is $6,000 USD. Unfortunately, most services from law firms or chop-shop websites only provide the paperwork needed form the legal entity and achieve the tax-exempt status. This leaves the nonprofit founders high and dry when it comes to policies, bylaws, strategy, and fundraising licenses required to legally operate. All services offered by Protégé Nonprofit Solutions begin below the national average and include each and every document needed by a start-up nonprofit.