Non-profit agents help organizations stay up-to-date in terms of legal notices and service of process from the government, individuals, and other entities alike.
As someone who has been in the business for years, I will explain what a non-profit registered agent is and why your business may need one.
Quick Summary
- A non-profit registered agent is an individual or business that acts on behalf of a non-profit to receive legal notices and documents from the government, individuals, and other businesses.
- A non-profit must ensure that the agent appointed has satisfied the requirements in the state where it wishes to operate.
- Non-profits frequently favor registered agent services over individual agents because they are renowned for their reliability and professionalism.
What Is A Non-Profit Registered Agent?
A non-profit registered agent is a legal expert or registered agent service that represents non-profit organizations in all legal matters.
These agents are usually appointed in the state where the organizations are registered.
To become a non-profit registered agent, you must be able to satisfy the responsibilities and criteria demanded by the state you are working in.
These responsibilities could include maintaining regular business hours, receiving legal documents, and having a physical address [1].
Do I Need to Have A Non-Profit Agent For My Organization?
Yes, you need to have a non-profit agent for your organization if it is a non-profit or charity organization.
At the point of registration, you will be asked to name your registered agent or appoint one if you do not have it yet.
The purpose of doing this is to enable you to conduct business within the state and be eligible to obtain federal tax-exempt status and donations [2].
Depending on the state where you registered your non-profit corporation, you will need to renew your registration and inform them of any new changes regarding your agent’s appointment.
Failure to appoint a non-profit registered agent can lead to your registration being rejected or an outright dissolution of your business within the state.
What Should A Non-Profit Look For In A Registered Agent?
A non-profit should look for these qualifications in a registered agent:
1. Ability to Maintain Regular Business Hours
A highly efficient registered agent should always be available during regular business hours to attend to individuals and government representatives who may want to submit a legal notice or document to the organization.
2. Physical Residence in the State
A non-profit should ensure that the chosen registered agent has a physical address in the state where they operate. This shows that the agent is highly reliable and can be reached when legal matters arise.
3. Responsibility
Registered agents best suited for non-profit corporations are usually responsible and treat sensitive documents professionally and carefully.
4. Punctuality
Non-profits should always ensure that the appointed agents can inform them about relevant documents and information at the right time.
Failure to do this on the agent's part can put the organization at risk, especially when serious legal matters are involved.
Can The Owner of A Non-Profit Organization Be Its Own Registered Agent?
The owner of a non-profit organization can be its own registered agent, especially in cases where the organization is newly registered and just starting operation in the state.
However, as the organization grows, it is always advisable to hire the services of another individual or firm that can undertake the role and carry out the responsibilities successfully.
Being a non-profit registered agent is no simple task, and when your non-profit expands, you will have more responsibilities, which might overwhelm you in the long run.
This is why having an external, non-profit registered agent is so important.
Read more: Can I be my own registered agent
Should I Use A Registered Agent Service For My Non-Profit?
You should use a registered agent service for your non-profit organization.
Large non-profit organizations, simply because of their professionalism and better capability to handle legal responsibilities, usually prefer registered agent services to stand-alone individuals.
A major advantage of using a registered agent service for nonprofit organizations is that they save you the stress of appointing multiple individual agents, especially when you want to expand to other states.
FAQs
Who Can Serve as a Non-Profit’s Registered Agent?
Anyone can serve as a non-profit’s registered agent if they fulfill the requirements for becoming one, such as being at least 18 years old and having a physical address.
How Much Does a Non-Profit Registered Agent Cost?
A non-profit registered agent costs around $50 to as much as $300, depending on the nonprofit registered agent service or individual you choose.
Get Started With A Registered Agent For Your Non-Profit Today
A registered agent is needed for your non-profit to satisfy registration requirements to begin operations in any state.
Given that registered agent services are the best bet for your non-profit, I have taken the time to compile a list of the best registered agent services, and you can trust that they will handle the legal responsibilities of your organization in a timely and professional manner.
References:
- https://www.sos.wa.gov/corporations-charities/frequently-asked-questions-faqs/faq-registered-agent
- https://www.sos.ri.gov/divisions/business-services/non-profit/maintain-a-registered-agent
