Nonprofits provide valuable services even in economically challenging times
Over 4000 new NC Nonprofits registered so far this year
In spite of the warnings posted on the NC Center for Nonprofit’s website that this is not a good time to form such entities, over 4000 new nonprofits have been registered so far this year with the North Carolina Secretary of State. Over 600 of those have their registered address in Wake County. Obviously, the warnings reflect a concern over further diluting the available resources that support of nonprofit entities. However, there remain good reasons to form nonprofits.
Nonprofits deliver needed programs, services, education, advocacy and faith based activities in North Carolina and provide over 425,000 jobs in the process. According to the NC Center for Nonprofits, that is approximately 1 out of every 9 jobs in the state. While nonprofits are tax-exempt, these employees pay income, sales and property taxes contributing over $38 billion to our state’s economy each year.
Forming a nonprofit requires particular steps, many of which the NC Center for Nonprofits advises should be supervised by an attorney and accountant. After organization and formation there are ongoing legal requirements for most nonprofits. Further, those who operate nonprofits as well as the board members who have a duty to oversee operations need to ensure that the nonprofit complies with the law and avoids avoid any conduct that might create legal liability.
While economic conditions should cause careful consideration of the benefits and liabilities associated with forming a new nonprofit, there remain valid reasons to do so. As federal, state and local governments face increased budget constraints, nonprofits and the resources they provide will become even more critical.
Whether dealing with issues of formation, organization, operation or compliance, Ivie Law Firm can provide the necessary legal services to make your nonprofit efficient and effective at achieving its defined mission. Contact Ivie Law for further details.