Incorporation is advantageous in that it provides some degree of legal protection for the association’s board members and officers and is a pre-requisite for acquiring nonprofit status with the federal government.
Acquiring Nonprofit status (501©3 designation) is a further step by which an organization is recognized by the Internal Revenue Service as a nonprofit corporation. This enables a lake association to offer tax deductibility to its members for their membership fees, gifts, and donations and, thus, helps them raise funds for their activities.
Different states may refer to the incorporating document as a charter or a certificate of incorporation. In Maine, the articles of incorporation, which conform to state law, must be filed with the Secretary of State’s office and must convey the purpose of your corporation, the name, the primary place of business, names of directors, and the amounts and types of stock it is authorized to issue.
The website below will show you how to register as a nonprofit corporation in the State of Maine.