Tag Archives: incorporating

501(c)3 or informal groups? Why going nonprofit is not always good for grassroots groups

If you and your neighbors have been working on a project to improve your community, the idea that you should turn your informal group into a formal nonprofit has likely come up. That’s understandable, since there are good reasons for some groups to do so.

But for other groups—especially small ones just starting out—incorporating can be unnecessary, even counterproductive. In some cases, it can be such a drain of time and money that it actually deprives communities of the very services the group is working to provide!

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