What type of legal structure should a nonprofit have?

A nonprofit organization in Virginia should have a legal structure that is compliant with the laws of the state. The most commonly used legal structure for a nonprofit organization is called the “corporation.” This structure is recognized by statute, so it protects the assets and activities of the organization, as well as its members and directors. When establishing a corporation, it is important to include the right documents and filing fees. These include the Articles of Incorporation, which establish the basic operational principles of the nonprofit, as well as incorporating the nonprofit’s name and other relevant details. The documents should also include a Statement of Nonprofit Purpose, which define the organization’s charitable activities and exempt it from taxes. Additionally, the organization should appoint directors and register with the Virginia State Corporation Commission. The other legal structure available to a nonprofit organization in Virginia is the Unincorporated Nonprofit Association. This structure is great for organizations that want to remain small and operate on a more informal basis. However, this structure does not provide the same level of legal protection as a corporation. In order to ensure compliance with Virginia’s nonprofit laws, it is important to choose the appropriate legal structure for your organization and properly document the formation process. This will help protect the organization’s mission, its members and its activities.

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What type of legal structure should a nonprofit have?

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