Another benefit to incorporating is that a nonprofit organization has the legal right to own property. Property can serve a number of purposes, and can be capitalized to fund the organization or even held in trust. Because of an organization’s NPO status, there is no requisite property tax. As long as the revenues gained from any held land must be turned back into the organization, the fact that an organization can use, own, and sell land can eliminate much of the need for fund-raising. For an NPO that uses its land as a wise investment, the right to own property can be a significant advantage.
Nonprofits that are lawfully incorporated have a number of rights and advantages that not only protect the founder, but that help the NPO to thrive, as well. Utilizing these aspects to the advantage of a business can make the difference between a successful and unsuccessful NPO.
