Non-profit organizations fulfill a variety of state and national needs. Several noteworthy organizations are known for raising funds for charitable causes, helping others both domestically and abroad, raising public awareness and education, and promoting civic participation in local and national matters. Federal and state governments work hard to provide non-profit organizations with the resources they need to be successful in accomplishing their missions. It is our goal to help point your organization towards the available resources and to assist you throughout the process of registration and incorporation.
Maryland non-profits alone employ almost 240,000 people and account for almost ten percent of state employment. Those registered as Charitable Organizations may solicit donations from the general public, or they may be private grant making foundations that provide funding to other public organizations. Non-profits are often granted tax-exempt status by their state or federal government, and donations to public Charitable Organizations can also be tax-deductible for the donor.
A non-profit organization (also called a not-for-profit or an NPO) is a group without ownership that uses its profits towards the cause of the organization. In the U.S. a common type of non-profit is the Charitable Organization, although not all non-profits fall under that category.
By default, most tax-exempt Charitable Organizations are classified as “private” for tax purposes unless they take steps to prove otherwise. The funding for a private organization typically comes from a single source (such as a family or a corporation). “Grant makers” are private organizations that dedicate a considerable amount of their funds towards other organizations (often public) that further their cause.
A public Charitable Organization receives its funding from multiple sources including the government, individuals, and private organizations (“grant makers”).
Maryland Nonprofits has compiled the “Standards for Excellence Code” list explaining codes of conduct and appropriate business behavior for strong, resourceful non-profit organizations. Although it was published by a Maryland organization, its code of conduct has become standard for non-profit organizations throughout the United States. It is broken down into several categories, but here some of the most significant:
Contact Us today to discuss your non-profit legal questions.