Arkansas Nonprofit Corporation Definition

Arkansas Nonprofit Corporation

Arkansas Nonprofit corporations must be created for a public benefit, for mutual benefit for its members, or for religious purposes. Nonprofit corporation status does not guarantee that the organization will be granted tax-exempt status by the Internal Revenue Service, nor does it ensure that the contributions to the organization are tax deductible. Becoming a nonprofit corporation is generally a prerequisite to applying for tax-exempt status under IRS Code, such as section 501(c)(3) or section 501(c)(4). To accommodate the vast number of entities choosing to file for tax-exempt status with the IRS, the Arkansas Secretary of State provides a blank template, as well as the traditional nonprofit articles of incorporation template. If the nonprofit corporation intends to solicit charitable contributions, it must also register with the Arkansas Secretary of State. • May not have shareholders or pay dividends. • May compensate members, officers, and trustees (in reasonable amounts) for services rendered. • Must have specific provisions in its Articles of Incorporation dealing with property distribution upon dissolution. • Are created by filing Articles of Incorporation with the Arkansas Secretary of State. • Must file an annual disclosure statement with the Arkansas Secretary of State.