A non-profit corporation is similar to a business corporation except it is not for profit. Like a business corporation, a non-profit corporation is formed by filing articles of organization with the Minnesota Secretary of State’s office. The articles of organization must contain the name of the corporation, the address of the registered office, the name and address of each incorporator, and a statement that the corporation is organized as a non-profit organization. A non-profit organization can also include bylaws that set forth rules for operating the corporation which do not have to be filed with the Secretary of State’s office.
Non-profit corporations usually have a board of directors, and may have members that are similar to shareholders in a business corporation.
Just because an organization is a non-profit corporation, does not necessarily mean that it is tax exempt. A tax exempt organization usually does not have to pay tax on income, and contributors can take tax deductions for contributions made to tax exempt organizations. In order for a Minnesota non-profit corporation to become a tax-exempt organization, the corporation must file an application with the IRS for approval as a tax-exempt organization.