In the realm of nonprofit organizations, there are many roles and terminologies that one needs to familiarize themselves with, and the term “incorporator” is no exception. While it may sound complex or intimidating, understanding the role of an incorporator in a nonprofit setting is crucial for anyone planning to start their own nonprofit organization.
Bank and Agency Staff Often Get This Wrong
Over the years, nonprofit founders who need to act on behalf of the organization after we create their 501(c)3 have often learned that even bank employees and government agency staff do not understand the meaning of the word “incorporator”. This can present a challenge when opening a bank account or performing other duties which require authorization as a “person of authority” in the organization. Bank and government staff often block routine efforts by demanding the “incorporator” be present to sign documents, etc.
This can be extremely frustrating – because, of course, our staff cannot come to your bank to assist, or set up your payroll without contracting with your organization as its legal representative!
Legal Definition of Incorporator
An incorporator is the individual or entity designated to complete and file the Articles of Incorporation for the purpose of legally establishing a corporation. Once the filing process is complete, the incorporator has no authority or responsibility within the organization.
The term “incorporator” refers to the individual or entity responsible for executing and filing the Articles of Incorporation, the official document required to legally establish a corporation. Despite playing a significant role in the initial formation process, an incorporator does not wield any power within the organization itself once the filing process is complete.
Who Can Act as an Incorporator?
Virtually anyone can act as an incorporator. This role is not restricted by professional qualifications, and it doesn’t require a legal or business background. An incorporator could be a founder, a board member, an attorney, or even a service like InstantNonprofit that assists with the legal formation of nonprofits.
What is the Role of an Incorporator?
The primary responsibility of the incorporator is to file the Articles of Incorporation with the appropriate state agency. The Articles of Incorporation is a crucial document that outlines key aspects of the organization, such as its name, purpose, initial board of directors, and the type of corporate structure being formed.
Once the Articles of Incorporation have been officially filed and approved, the incorporator’s role is typically complete. They do not hold any power within the organization and are not involved in its operation or governance.
Why the Incorporator Role Matters
While the role of the incorporator is brief, it’s essential. Without the incorporator’s actions, the nonprofit organization cannot be legally formed. Understanding the role of the incorporator helps clarify the formation process and delineates the responsibilities involved in starting a nonprofit organization.
For anyone considering starting a nonprofit, it’s crucial to understand the role of the incorporator and the importance of the Articles of Incorporation in the formation process. At InstantNonprofit, we offer expert services to guide you through the process and ensure your nonprofit is established correctly and legally.
Conclusion
In the world of nonprofit organizations, the role of an incorporator is brief but pivotal. As the individual or entity responsible for filing the Articles of Incorporation, the incorporator sets the legal foundation for the organization. Remember, the incorporator doesn’t hold any power or responsibility within the organization once it’s established, but their role is integral to the formation process.
If you’re considering starting a nonprofit, understanding these definitions and roles is key to your success. InstantNonprofit is here to support you through the process and ensure your organization is set up for success. Reach out to us to learn more about how we can help.
