The California Nonprofit Corporation Kit »

Anthony Mancuso is a corporations and limited liability company expert. He graduated from Hastings College of Law in San Francisco, is a member of the California State Bar, writes books and software in the fields of corporate and LLC law, and studies advanced business taxation at Golden Gate University in San Francisco. He has also been a consultant for Silicon Valley EDA (Electronic Design Automation) companies, most recently working on a C++ open-source integrated circuit database project team. He is the author of several Nolo books on forming and operating corporations (both profit and nonprofit) and limited liability companies. His titles include Incorporate Your Business, How to Form a Nonprofit Corporation (national and California editions), Form Your Own Limited Liability Company, The Corporate Records Handbook, and LLC or Corporation?. He wrote and programmed Nolo’s LLC Maker and Incorporator Pro software programs, which generate state-by-state articles and other forms for organizing corporations and LLCs. His books and software have shown over a quarter of a million businesses and organizations how to form a corporation or LLC. He also is a licensed helicopter pilot and has performed for years as a guitarist in many musical idioms.

Form a California nonprofit and keep everything organized!

Thousands of arts groups, educators, social-service agencies and others have used this bestseller -- which provides a records binder to help keep everything organized -- to organize. It's so easy to use, anyone can do it!

With a nonprofit corporation, you gain recognition, save money, become eligible for grants, and protect your members and directors from liability. And you can do all this without an attorney.

The 7th edition is completely updated to provide the latest rules and forms, which are provided as tear-outs and on CD-ROM. It's also available in a book-only format How to Form a Nonprofit Corporation in California.

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If you re thinking of forming a nonprofit corporation in California, you ll find this handbook invaluable.

1. Is Nonprofit Incorporation Right for You?
Is Your Group a Nonprofit That Can Use This Book?
Benefits of the Nonprofit Corporation
The Disadvantages of Going Nonprofit
How Nonprofits Raise, Spend, and Make Money
Your Path to Nonprofit Status
Incorporating in Another State -- Don't Fall for It

2. Legal Rights and Duties of Incorporators, Directors, Officers, Employees, and Members
Incorporators and Their Role as Promoters
Directors
Officers
Employees
Membership Nonprofits

3. Requirements for Section 501(c)(3) Tax Exemption
Section 501(c)(3) Organizational Test
Valid Purposes Under Section 501(c)(3)
Other Requirements for 501(c)(3) Groups
Information for Specific Questions About Your Group's Activities

4. Public Charities and Private Foundations
The Importance of Public Charity Status
How to Qualify for Public Charity Status
Private Foundations

5. Other Tax Benefits and Requirements
Federal and State Tax Deductions for Contributions
Federal Estate and Gift Tax Exemptions
Federal Unrelated Business Income Tax
California Unrelated Business Income Tax
California Nonprofit Tax Exemption
California Attorney General Reporting Requirements
California Welfare Exemption
Other California Tax Exemptions
State Solicitation Laws and Requirements

6. Choose a Name and File Your Articles of Incorporation
Choose a Corporate Name
Practical Suggestions for Selecting a Name
Check Name Availability
Reserve Your Corporate Name
Perform Your Own Name Search
Prepare Articles of Incorporation
File Your Articles

7. Bylaws
Choose a Membership or Nonmembership Structure
Bylaws for a Public Benefit Corporation
Membership Bylaw Provisions for a Public Benefit Corporation
Bylaws for a Religious Corporation
Membership Bylaw Provisions for a Religious Corporation

8. Prepare Your State Tax Exemption
The State Tax Exemption Application: Form FTB 3500
Instructions for Completing Form 3500
Sign and Mail Your Exemption Application

9. Apply for Your Federal 501(c)(3) Tax Exemption
Getting Started
Do You Need to File Form 1023?
Prepare Your Tax Exemption Application
Filling Out the Schedules
Assemble and Mail Your Application to the IRS
What to Expect From the IRS
The Federal Determination Letter

10. Final Steps in Organizing Your Nonprofit
Mail IRS Letter to Franchise Tax Board
Set Up a Corporate Records Book
Prepare Offer to Transfer Assets From an Existing Business or Organization to Your Nonprofit
Prepare Minutes of Your First Board of Directors' Meeting
Complying With the Bulk Sales Law
Prepare a Bill of Sale for Assets
Prepare Assignments of Leases and Deeds
File Final Papers for the Prior Organization
Notify Others of Your Incorporation
Apply for a Mailing Permit
Apply for Your Property Tax Exemption
File a Domestic Corporation Statement
File an Initial Report With the Attorney General
Issue Membership Certificates
File Your Articles With the County Recorder
Register With the Fair Political Practices Commission

11. After Your Corporation Is Organized
Piercing the Corporate Veil -- If You Want to Be Treated Like a Corporation, It's Best to Act Like One
Federal Corporate Tax Returns
California Corporate Tax Returns and Reports
Federal and State Corporate Employment Taxes
Sales Tax Forms and Exemption From Sales Tax
Licenses and Permits
Workers' Compensation
Private Insurance Coverage
Dissolving a Nonprofit Corporation

12. Lawyers, Legal Research, and Accountants
Lawyers
Legal Research
Accountants and Tax Advice

13. Corporate Formalities
Minutes of Meetings
Waiver of Notice of Directors' and Members' Meetings
Action Without Meeting By Directors
Certification of Resolution or Action by Written Consent of Board of Directors
Amending Bylaws

Appendix A: How to Use the CD-ROM
Installing the Form Files Onto Your Computer
Using the Word Processing Files to Create Documents
Using Government Forms
List of Files Included on the Forms CD
Corporate Forms
Incorporation Checklist
Articles for a Public Benefit Corporation
Articles for a Religious Corporation
Special Article Provisions for an Unincorporated Association
Cover Letter for Filing Articles
Bylaws for Public Benefit Corporation
Membership Bylaw Provisions for Public Benefit Corporation
Bylaw Provisions for Religious Corporation
Membership Bylaw Provisions for Religious Corporation
Offer to Transfer Assets
Bill of Sale for Assets
Minutes of First Meeting of Board of Directors
Membership Certificate
IRS, FTB, and AG Forms and Publications
Name Availability Inquiry Letter
Name Reservation Request Form
California FTB 3500 Exemption Application (2006)
IRS Form 1023: Application for Recognition of Exemption (6/2006)
Instructions for IRS Form 1023 (6/2006)
Form SS-4: Application for Employer Identification Number (2/2006)
Instructions for Form SS-4 (2/2006)
Form 5768: Election/Revocation of Election by an Eligible Section 501(c)(3)
Organization to Make Expenditures to Influence Legislation (12/2004)
Publication 557: Tax Exempt Status for Your Organization (3/2005)
Publication 4220, Applying for 501(c)(3) Tax-Exempt Status (9/2003)
Publication 4221, Compliance Guide 501(c)(3) Tax-Exempt Organizations (9/2003)
Publication 1828, Tax Guide for Churches and Religious Organizations (9/2006)
IRS Revenue Procedure 75
IRC Section 4958, Taxes on Excess Benefit Transactions
IRS Regulations Section 534958, Table of Contents
Registration/Renewal Fee Report to Attorney General of California (Form RRF-1) (3/2005)
Instructions for Filing Form RRF-1 (3/2005)
Attorney General's Guide for Charities (2005)
Guide to Charitable Solicitation 1999
Assessors' Handbook Section 267, "Welfare, Church, and Religious Exemptions" (10/2004)
IRS and Tax Articles
Public Charity or Private Foundation Status Issues under IRC §§ 509(a)(1)-(4), 4942(j)(3), and 507
Disclosure, FOIA and the Privacy Act
Update: The Final Regulations on the Disclosure Requirements for Annual Information Returns and Applications for Exemption
Education, Propaganda, and the Methodology Test
Election Year Issues
Lobbying Issues
Private School Update
UBIT: Current Developments
Intermediate Sanctions (IRC 4958) Update

Appendix B: Information and Tear-Out Forms
(* Asterisks indicate forms are also includedon the CD-ROM -- see Appendix B)
California Secretary of State Contact Information
*Incorporation Checklist
Special Nonprofit Tax-Exempt Organizations
*Name Availability Inquiry Letter
*Name Reservation Request Form
*California FTB 3500 Exemption Application (2006)
*IRS Package 1023: Application for Recognition of Exemption (6/2006)
*IRS Form SS-4: Application for Employer Identification Number (2/2006)
*IRS Form 5768: Election/Revocation of Election by an Eligible Section 501(c)(3) Organization To Make Expenditures To Influence Legislation (12/2004)

Member Register
Membership Certificates
Index