Corporation incorporated for businesses engaged in charitable, religious, scientific or educational activities profiting for the betterment of the society is defined as non profit corporations.
No part of the income or profit is distributed among the officers or the directors, other than for legal business purpose or for any other promotional purpose of the corporation. The income is tax exempted by the state of Nevada and is used for non profitable goals of the organization.
The incorporation of the non profit corporation subjects to the complete tax exemptions rules. The corporation may have any number of directors, who need not be the resident citizens of the Nevada state; they have the provision to appoint a resident agent to handle the functioning of the non profit corporation. Transactions held outside the state too is subjected to complete tax deduction as the governing laws that are applicable to the non profit corporation is the state law of which it is incorporated.
Nevada non profit corporation’s primary purpose is to serve public interests for non-commercial purposes. These issues fall into a broad classification of religion, research, art, charity, education or even politics. They do have to generate revenues to for their operations which have primarily got from the public or private donors. These donations are tax exemptible by the state laws. It is mandatory for the non profit corporation to utilize their revenues, since all these expenses are to serve in the public interest.
The general perception of Nevada non profit corporation is a relatively small organization working for altruistic purposes. Local food banks, orphanages, disaster relief operation teams clinics are a few examples of these organizations. They usually have dedicated low paid managers and unpaid volunteers. Major universities and hospitals also can be non-profit organizations. In addition to these organizations there are also government funded non- profit organizations. If you are contributing to a Nevada non-profit corporation, think beyond the tax deduction and know where your money is going.