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Blog 12 Legal Considerations When Forming a Non-Profit Organization

Legal Considerations When Forming a Non-Profit Organization

Learn About Establishing a Non-Profit Entity with Margaret Zylka House

This month, we explore the legal considerations when forming a non-profit organization. Starting a non-profit organization allows individuals to serve their communities while benefiting from tax-exempt status but requires careful legal planning to meet federal and state regulations. Margaret Zylka House, Attorney at Law understands the steps involved in forming a non-profit organization to ensure compliance and long-term success.

Choose a Non-Profit Purpose and Structure That Meets Legal Requirements

A non-profit must serve a charitable, educational, religious, or public service purpose to qualify for tax exemption. Founders must define the organization’s mission, goals, and structure. Pennsylvania non-profits can take various forms, including:

  • Charitable organizations – Focus on education, healthcare, or social services.
  • Religious entities – Support faith-based initiatives.
  • Civic and membership groups – Promote arts, culture, or local development.

Choosing the right structure ensures compliance with Pennsylvania and IRS regulations.

File Articles of Incorporation with the State of Pennsylvania

To establish a legal entity, founders must file Articles of Incorporation with the Pennsylvania Department of State. This document includes:

  • The organization’s name and registered office
  • Its non-profit purpose and governing structure
  • Names of initial directors

Incorporation provides legal protection and credibility while meeting state requirements.

Draft Bylaws and Establish a Board of Directors of the Non-Profit

Bylaws outline governance rules, including leadership roles, voting procedures, and financial policies. The organization must also appoint a board of directors to oversee operations and ensure compliance with legal obligations.

Register and Apply for State Tax Exemptions and Maintain Compliance

Pennsylvania requires non-profits to:

  • Register for state tax exemption through the Department of Revenue
  • File charitable solicitation registration if fundraising from the public
  • Maintain annual filings to stay in good standing

A Federal Employer Identification Number (EIN) from the IRS is necessary for banking and tax filings. Non-profits seeking tax-exempt status must file Form 1023 or Form 1023-EZ with the IRS to receive 501(c)(3) designation.

Proper planning ensures non-profit success. Margaret Zylka House, Attorney at Law helps organizations navigate formation and compliance to form a not-for-profit entity in Pennsylvania.

 

For more information on any of our legal services, call (724) 628-4955. Visit us on Facebook for our latest news. Our attorneys are here to help you navigate the legal considerations when forming a non-profit organization.