Act: Regulating small nonprofits
No laws call for a nonprofit organization to incorporate, or perhaps to adopt any variety of formal home business structure. Having said that, lots of states strongly think that some kind of guidelines should really apply to these informally organized nonprofits that are operating inside their borders.
Accordingly, the Uniform Unincorporated Nonprofit Association Act (UUNAA) was drafted by a National Conference of Commissioners on Uniform State Laws.
This distinct model act addresses the following sticky queries:
Who has the authority to acquire, hold, and transfer property on behalf of an unincorporated association?
Who can sue on behalf of your entity?
Who is usually sued when the entity engages in actions that lead to civil liability?
Who has the right to enter into contracts on behalf of the entity?
The UUNAA was drafted together with the compact, informal associations in thoughts. In case your nonprofit falls into this category, it may perhaps not have prepared access to legal tips. So the UUNAA is a good source of legal answers for your organization. You can find a copy of the Act at www.muridae.com/nporegulation/ documents/unincorp_assoc_act.html.
