in the eyes of the law, a corporation is a legal entity; it is separate and distinct from the people who run it; and the corporation can enter into contracts, be sued, and perform other powers permitted by state law, and as such needs to engage professional services
Like for-profit corporations, nonprofit corporations, need banking, accounting and insurance services, and may need to engage legal services if the situation warrants.
incorporating as a nonprofit provides benefits to the coalition that help pave the way to self sustainability
Incorporating provides several important benefits for the healthcare coalition:
incorporating as a nonprofit does not require a healthcare coalition to apply for 501(c)(3) designation
Contrary to popular belief, taking a healthcare coalition nonprofit is not one and the same as taking it 501(c)(3). Becoming a nonprofit corporation is a state action that makes the coalition a legal entity, whereas obtaining a 501(c)(3) designation from the Internal Revenue Service (IRS), is a federal thing. The 501(c)(3) designation is optional and can be done at a later date.
Learn more about taking your healthcare coalition 501(c)(3)
coalition governance changes little when transitioning to independent nonprofit status
Healthcare coalitions that establish independent nonprofit corporations must concern themselves with living by the requirements of their corporate charter. For coalitions using third-party fiduciary agents, governance starts with their bylaws.
Learn more about healthcare coalition governance
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