JMRPWG agenda 102898 - Laserfiche WebLink

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Once the board is established, it must elect officers . The day-to - day management of the corporation is provided by its officers . The officers are elected or appointed as prescribed in the - bylaws and their performance is overseen by the directors . Drafting Articles of Incorporation The most basic step in setting up a land trust as a legal entity is to establish it as a nonprofit corporation . This is accomplished by preparing and filing articles of incorporation with the appropriate state agency, usually the Secretary of State ' s corporations office . The articles of incorporation are the most fundamental organizational documents of the land trust, defining the basic purposes and structure of the organization. The main source of information for land trusts ' organizational documents is the state law governing the incorporation and governance of nonprofit corporations . North Carolina ' s Nonprofit Corporation Guidelines should be consulted to determine what information to include and how to present it . Drafting Bylaws Bylaws are the governing documents of the land trust, since they define how the organization will be run . The North Carolina Nonprofit Corporation Act requires that all nonprofit corporations have an organizational structure and bylaws by which they are managed . The organizational structure is comprised of directors and officers which handle the internal : and perhaps also of members, which may have the right to elect rAaaagement of the organization, the board of directors of the corporation . The internal management of the corporation is regulated by the corporate bylaws and the articles of incorporation. The bylaws may contain any provisions not inconsistent with the law or the articles of incorporation . Obtaining Tag Exempt Status To operate effectively, a land trust must satisfy two Internal Revenue Service determinations . One establishes the trust ' s own tax exempt status as a charitable organization, while the other establishes the right of donors to the maximum allowable deduction for their contributions to the trust . Federal Tax Exemption . Land trusts claim exemption as charitable organizations under Section 501 [ c] [3 ] of the Internal Revenue Code . Application for a determination is made by means of IRS Form 1023 , and a trust seeking tax exemption should file that form within 15 months from the end of the month when the organization was established . For an organization that has not yet begun operation, a proposed budget for two accounting periods and a balance sheet are acceptable . However, many trusts are established with a minimum of assets and do not accept contributions until tax - exempt status is determined . In that case, the trust must note that information on the application and can eliminate filling out a balance sheet . 9