How to Become a Non-Profit
A COMPLETE GUIDE ON BECOMING A NON-PROFIT ENTITY IN THE STATE OF GA

Forming a Non-Profit can be difficult and tedious. Clayton Connection prides itself in providing both current and new non-profits
with every resource possible to make running your organization
simple and easy. We also understand that you'd rather focus
on your organization's activities.

The following forms will aid you in becoming recognized in the state of GA as a non-profit and were downloaded straight from the Secretary for the State of Georgia website. You can visit their website directly by going to http://sos.ga.gov

Filing Procedure
Initial Filing


Advantages of Becoming a Non-Profit
THE INS AND OUTS AND WHY YOU SHOULD FORM A NON-PROFIT

A non-profit corporation is an entity formed for purposes other than making a profit. To be considered tax-exempt, non-profits must apply for federal and state tax-exempt status.

Tax-exempt status is not automatically granted once the non-profit corporation is formed. To apply for federal tax-exempt status, Form 1023 must be filed with the IRS. For state requirements, it is best to contact the State of Georgia for taxation and formation questions. To qualify for federal tax-exempt status under 501(c)(3) of the Internal Revenue Code, the non-profit must be organized and operate for some religious, educational, charitable, scientific, literary, testing for public safety, fostering of national or international amateur sports, or prevention of cruelty to animals or children purpose permitted under this section of the code.

Consider consulting with an attorney and/or an accountant to ensure that your non-profit is properly organized under federal and state laws.

These are some advantages to forming a non-profit corporation:

• Limited Liability. Directors are typically not personally responsible for the debts and liabilities of the non-profit corporation. (There are exceptions. A person cannot use the corporation to shield illegal or irresponsible acts on his/her part. Also, directors have a fiduciary responsibility; if they do not perform their jobs in the best interests of the non-profit, and the non-profit is harmed, they can be held liable.)
  
• Tax Exemption. Non-profit corporations have the ability to apply for both federal and state tax-exempt status. This status is not automatic. You must apply to the IRS and the state govt. for tax exempt status.
  
• Eligibility for Public and Private Grants. Certain non-profit corporations are eligible to receive public and private grants to make the obtainment of operating capital easier.
  
• Donations are Tax-deductible. With 501(c)(3) non-profits, donations made by individuals to the non-profit corporation are tax-deductible.
  
• Opportunity to Do Something Good for Your Community. Non-profits provide needed services and opportunities to enrich our community.