Who Really Owns a Nonprofit?

The concept of owning a non-profit organization can be difficult for some to understand, especially given that the answer is: "No one ? and everyone!" We get this confused with new customers on a fairly regular basis. And, given the people an insight into how basic business operates, it's understandable. To fully appreciate the concept of "non-property", it is useful to first discuss the different types of business entities. Then we look at the organization goal. By the end of the article, should make it much more sense.

There are different types of business entities. For-profit companies make most of them. Here are a few (there are others) ? all these have an owner or owners: sole trader: A person who does business for profit. The only owner takes full responsibility for all obligations and liabilities of the partnership business.General: two or more persons as co-owner of a for-profit business.Corporation (for-profit): The company itself takes all obligations and liabilities of the Corporation. A company is owned by shareholders.

A shareholder is protected from the debts of the company and liabilities.S-Corporation: A company may try to "S Corporation" status for federal income tax. The income of an S-Corporation is taxed only once: when the employee or shareholder level.Limited Liability Company: An LLC is a formal association that the advantage of limited liability of a company and the flexibility and single taxation of a partnership combines. An LLC has members rather than the shareholders.With LLC, the businesses listed above are not used for non-profit organizations.

Even the use of an LLC is extremely rare, all-for-profit LLC members should be recognized 501 (c) (3) organizations, not humans or other entity types. The most popular business entity for nonprofits is the non-profit company. This type of operation is different than a typical for-profit organization or S-Corporation. They have shareholders (owners). A nonprofit corporation has no owners, therefore, only interested parties. A stakeholder does not own, but someone who has an interest in the successful operation of the organization.

Stakeholders, members of the nonprofit, or even the beneficiaries of the nonprofit activities. One thing interested in common: they have no legal possibility for personal gain ? Thus, non-profit. A non-profit corporation established to carry out a public purpose, whether religious, educational, charitable, scientific or whatever. It is forbidden to act in a manner that results in a private funeral (gain) to individuals.How that can be? Someone has to own it, right? No, not really. The nonprofit organization is not "owned" by the person who started it.

It is a public organization that belongs to the large public. The parties responsible for the organization's stakeholders are active members of the board of directors.Also, a non-profit company rather than sold. It's just not possible. If a non-profit company would "close", or to dissolve the board of directors of the nonprofit share of all the nonprofit's assets to another nonprofit corporation after all debts have been paid. "No one ? and everyone!" Hopefully now it's much clearer what we mean.

Source: http://estherklee.shoperview.com/who-really-owns-a-nonprofit/

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