There are many benefits to starting a non profit organization. Legal incorporation provides resources that are generally not available to individuals or groups in any other way. These resources have helped organizations change laws and influence elections, cultural focus and business practices. They have been used to educate and organize the public around environmental, health, poverty and many other issues.
Strength in Numbers
Non profit organizations started under 501(c)4 can lobby elected officials. They have the power to organize large groups of people and solicit contributions in order to change legislation or put pressure on large companies to change their business practices.
Tax Exemption
Non profit groups with 501(c)3 status can receive exemptions from local, state and federal taxes. They may not have to pay property taxes, income tax or sales tax.
Grants
Most grant-making foundations and governmental bodies will only award grants to legally incorporated non profit organizations. Public contributors can also receive tax breaks when giving to public charities.
Legal Entity
The act of starting and incorporating a non profit organization creates a legal entity that has an identity and mission that is separate from any single individual involved with the group.
Liability
An indemnification clause typically included in the "Articles of Incorporation" of a non profit organization relieves any individual from being personally liable for debts and obligations incurred by the non profit organization.
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