A nonprofit corporation is an entity formed for purposes other than making money. Such entities, if properly qualified, generally are exempt from taxation.

Like standard for-profit corporations, non-profits provide limited liability protection. The personal assets of the directors or officers typically cannot be used to satisfy the debts and liabilities of the nonprofit corporation.

Non-profit corporations may include businesses that conduct scientific, literary, religious, educational, charitable, public safety, or other permissible purposes.

Some advantages of a non-profit corporation are as follows:

• Avoidance of personal liability for corporate acts, errors or omissions;
• Potential avoidance of federal and state taxes;
• Funding & Financing (federal, state, local and private grants, concessions);
• Contributions are tax-deductible.