The corporation constituted for companies engaged in charitable, religious, scientific or educational activities that profit for the betterment of society is 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. Income is exempt from tax by the state of Nevada and is used for the organization’s non-profit purposes.
The incorporation of the nonprofit corporation is subject to the full rules of tax exemptions. The corporation may have any number of directors, who do not need to be resident citizens of the state of Nevada; they have the provision to appoint a resident agent to manage the operation of the non-profit corporation. Out-of-state transactions are also subject to a full tax deduction, as the governing laws that apply to the nonprofit corporation is the state law into 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 under a broad classification of religion, research, art, charity, education, or even politics. They have to generate income for their operations that comes mainly from public or private donors. These donations are exempt from tax under state law. It is mandatory for the non-profit corporation to use its income, as all of 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 low-paid dedicated managers and unpaid volunteers. Major universities and hospitals can also be non-profit organizations. In addition to these organizations, there are also government-funded non-profit organizations. If you are contributing to a Nevada nonprofit corporation, think beyond the tax deduction and know where your money is going.