1. Non-Governmental Organizations (NGOs)
An organization that is NOT administered by federal, state, or local government.
Most have a membership base

2. Recreation-related NGOs
Recreation clubs for members
Volunteer groups for museums, nature centers, parks, etc... (e.g., “Friends groups”)
Other membership-based groups (e.g., TNC, Audubon Society)

3. Formational meeting: benefits vs. costs
Bylaws
Incorporate?
YES: Certificate of Incorporation
No: Charter
Employer Identification Number
Federal income tax exemption
State sales tax exemption

4. Benefits of NGOs Provide community services not provided by government
Provide a unified voice
Provide a mechanism to accomplish similar goals of members
Distribute association-related information quickly

5. Costs of NGOs Difficult for members to volunteer time
Volunteer burn-out
Conflicts between personal and organizational goals
Costs of membership (e.g., dues, travel to meetings)

6. Formational meeting: benefits vs. costs
Bylaws
Incorporate?
YES: Certificate of Incorporation
No: Charter
Employer Identification Number
Federal income tax exemption
State sales tax exemption

7. Bylaws
Written, detailed set of internal laws that govern the activities and procedures of an organization.
Identify NGO as “not-for-profit”

8. What is a “not-for-profit” NGO?
An organization whose members receive no monetary profit.

9. Formational meeting: benefits vs. costs
Bylaws
Incorporate?
YES: Certificate of Incorporation
No: Charter
Employer Identification Number
Federal income tax exemption
State sales tax exemption

10. Certificate of Incorporation
A written document that identifies the name, purpose, and duration of the corporation.
Filed in each state that organization offices are located in (DOS)
Usually filed by an attorney
Processing takes about 1 year

11. Charter A written document that:
states what the organization’s and board’s powers are
shows (through signatures) that the members agree to the association.
Necessary for obtaining “tax exempt” status

12. Why incorporate? Liability Status as a legal entity
Organizational permanency
Buying/selling property

13. Formational meeting: benefits vs. costs
Bylaws
Incorporate?
YES: Certificate of Incorporation
No: Charter
Employer Identification Number
Federal income tax exemption
State sales tax exemption

14. Formational meeting: benefits vs. costs
Bylaws
Incorporate?
YES: Certificate of Incorporation
No: Charter
Employer Identification Number
Federal income tax exemption
State sales tax exemption

15. Two types of federal tax exempt organizations
Internal Revenue Code 501(c)(3) status
charitable, religious, scientific, educational, literary, and amateur athletic organizations
IRC 501(c) status
business and trade organizations, and recreation clubs

16. Why is tax exemption important?
Applying for grants
Bulk-mailing benefits
Some lobbying permitted (<5% budget)
No taxes on income
No sales tax

17. Summary: Choices for NGOs
Corporations
For-profit
Not-for-profit
Not-for-profit tax-exempt:
501(c)(3)
501(c)
Charter organizations
Not-for-profit
Not-for-profit tax-exempt:
501(c)(3)
501(c)