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Group Structure
When forming a group, there are some legal implications to consider in terms of how it is structured. Even if you are not applying for 501c3 status immediately, there are still benefits to registering as a nonprofit at the state level, including limiting your personal liability. Outdoor Service Guides groups would fall under the Public Benefit Corporation category, as the mission revolves around providing youth outdoor education and service opportunities. You will need to have articles of incorporation and bylaws in place to register.
Once you have registered with the Secretary of State, you can go about applying for an EIN. This allows you to open a business bank account in the name of the group. Once you have an EIN, you can consider applying for 501c3 status. The primary benefits to being a 501c3 is that income is not taxed and that you may apply for grants without needing an external fiscal sponsor. Nonprofit status may also affect your ability to get insurance. the downsides of becoming a 501c3 are additional record keeping and filing requirements. Groups are not required to hold 501c3 status but it is recommended that they incorporate and obtain an EIN to limit personal liability.
Groups in some locations (such as Portland, OR and Brooklyn, NY) have established local councils that may be able to assist with the process of organizing and registering a new group, as well as obtaining insurance at a discounted rate.
Articles of Incorporation
Articles of incorporation are a legal document required to file with the Secretary of State. They are a public document that create and form the foundation of a corporation, nonprofit or otherwise.
Bylaws
Bylaws are a legal document required to obtain nonprofit status. These detail the structure and workings of your organization.
