Corporations formed for businesses engaged in charitable, religious, scientific, or educational activities that benefit from the betterment of society are defined as non-profit corporations.
No part of the income or profits is distributed among the officers or directors, except for lawful business purposes or for any other promotional purpose of the corporation. Proceeds are exempt from Nevada state tax and are used for the organization’s non-profit purposes.
The constitution of the non-profit corporation 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 are willing to supplement a resident agent to manage the operation of the non-profit corporation. Transactions made out of state are also subject to a full tax deduction, since the applicable laws that apply to the non-profit corporation are the laws of the state in which it is incorporated.
The primary purpose of the Nevada nonprofit 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 that they have mainly obtained from public or private donors. These donations are tax exempt by state law. It is mandatory for the non-profit corporation to use its income, since all 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 non-profit 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.