Pennsylvania allows not-for-profit corporations to generate income; the money, however, has to be put back into corporate operations rather than going to investors or owners. Pennsylvania, like other states, writes the law that govern non-profits that incorporate within the state. The Pennsylvania laws are found in Chapter 41 of the state code.
Incorporators
One or more individuals, 18 or older, can serve as incorporator for a not-for-profit organization. An established corporation can also serve as an incorporator, whether or not the established corporation is qualified to do business in Pennsylvania. Pennsylvania assumes that incorporators intend not-for-profits to exist in perpetuity unless the articles of incorporation set an expiration date. The articles must state the purpose of the corporation, which can be patriotic, political, religious or musical, among other options.
Names
Unlike other Pennsylvania corporations, nonprofits do not have to use a designator such as corporation, corp. or inc. in their name. They do have to comply with all other name requirements. A nonprofit cannot, for example, adopt an existing corporate name or one that's "confusingly similar," unless the other corporation is about to change its name or stop doing business in Pennyslvania. The exceptions are words and places that are in common usage -- these are free for any nonprofit to use.
Shares
A nonprofit corporation can be set up with stockholders and shares, just like a for-profit company. If the incorporators do this, the articles of incorporation must state the total number of shares the corporation is authorized to issue. The articles can also state the different classes of shares, and any voting rights and special rights that come with them, but this information isn't mandatory. The articles can also state that the corporation is organized on a "nonstock basis."
Directors
The incorporators, if they choose, can include the names of the nonprofit's initial directors in the articles of incorporation. State law requires that if the incorporators name the directors, the directors must already have agreed, in writing, to assume their positions. If the articles don't name the directors, the incorporators must choose the directors at the first organizational meeting. Nonprofits that change their directors must file a report with the state the following year.
