BENEFITS

of

UNINCORPORATED NONPROFIT ASSOCIATIONS

Beyond the fictions of the incorporated realm,
there is another way.





What can a UNA do?

  • Support any life-affirming purpose
  • Own property (bank accounts, land, vehicles, assets)
  • Contract and participate in commerce
  • Provide offerings to private and public persons / entities
  • Receive consideration, contributions, gifts, fees
  • Provide liability protection for members and officers

What can't a UNA do?

  • Have employees (vs. volunteers, members, contract labor)...
  • Engage in federally privileged activities, like receiving federal funds, claiming federal grants, applying for government aid...
  • Comply with ownership requests (b/c there aren't any owners)...
  • Maintain privacy if applying for the public...
  • Own as S-Corp (although can own an LLC, C-Corp, Partnerships)

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Privacy

It's our (Creator-endowed, Constitutionally-and-California-Code-protected) liberty to operate and contract in the private. "Unincorporated" = "private" = the realm of living wo/men with self-agency.

Ownership

The UNA is not owned by anyone, most certainly not any social security numbers. Instead, UNA's are stewarded and controlled by its managing officers, in the private, as per its own Articles and Bylaws...

Control

The UNA (along with its assets, property, accounts, etc.) is controlled by its officers, free from entanglements, lesser jurisdictions, filings, or compliance requirements...

Tax FILINGS

As an unincorporated nonprofit, UNAs may obtain a "CP 575 E" EIN number from the IRS, which is not subject to any foundational filing requirements...

Unincorporated

As an unincorporated association, a UNA's Articles and Bylaws is the private contract and law by which it operates. Since a UNA is not "incorporated", it also operates in privacy which legislative and statutory agencies cannot interfere with. Compared to other options — e.g. LLCs, 501(c)(3), partnerships, joint ventures, even trusts — UNA's provide ease and control with fewest hoops to jump through.

"Own nothing, control everything."

— Nelson Rockefelller



“The individual may stand upon his constitutional rights as a citizen. He is entitled to carry on his private business in his own way. His power to contract is unlimited. He owes no duty to the State or to his neighbors to divulge his business, or to open his doors to an investigation. He owes no such duty to the State, since he receives nothing therefrom beyond the protection of his life and property.


His rights are such as existed by the law of the land long antecedent to the organization of the State, and can only be taken from him by due process of law, and in accordance with the Constitution. Among his rights are a refusal to incriminate himself and the immunity of himself and his property from arrest or seizure except under a warrant of the law. He owes nothing to the public so long as he does not trespass upon their rights.”


— Hale v. Henkle (1905)
 

California-Established

California’s Corporation Code (Title 3) is well-regarded when it comes to the rights and privacy of unincorporated associations and the women and men who serve them, both within the boundaries of California as well as most states of the Union...


18035. "Unincorporated association" means an unincorporated group of two or more persons joined by mutual consent for a common lawful purpose, whether organized for profit or not.


18125. No limitation on the power of an unincorporated association to acquire, hold, manage, pledge, encumber, or transfer an interest in real or personal property.


18605. A member, director, or agent of a nonprofit association is not liable for a debt, obligation, or liability of the association solely by reason of being a member, director, officer, or agent.

Simplicity

What's true is simple.

And UNA's are by far the simplest option available...

GENERATIONAL

When a private unincorporated nonprofit association holds assets and property, nothing needs to change upon the death of any managing officer.... merely a requirement for a new Secretary-Treasurer. This means: no probate. UNAs also don't have any end date, even upon the death of managing officers.

ASSEt PrOTECTION

When the UNA holds title to assets, it does so independently of its members and officers. This translates into no estate tax, no gift tax, no capital gains tax, no probate...


18105. An unincorporated association may, in its name, acquire, hold, manage, encumber, or transfer an

interest in real or personal property.


18110. Property acquired by or for an unincorporated association is property of the unincorporated association and not of the members individually.


18260. A money judgment against an unincorporated association, whether organized for profit or not, may be enforced only against the property of the association..

W9 / 1099

Update W9s in directing compensation to Association purposes, where instead of a SSN name / 9-digit number, you use the UNA's name and EIN.


Re: 1099s, a UNA has no mandatory tax filings, and the SSN entity is no longer receiving and "income"...

UNA vs TRUST?

UNAs and Private Trusts are similar in that both provide private stewardship of assets and fall under equity jurisprudence.


UNAs, however, are typically much simpler to create and control — as per it's own Articles and Bylaws under California Corporations Code vs the complexities and formalities of Trust Law.

UNAs are also much better suited for daily activities, including serving the interests of members, non-members, and community.

 
"
... they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness..."


"... it becomes necessary for people to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature's God entitle them..."

— The unanimous Declaration of the
thirteen united States of America (1776)

“Freedom is the will to be responsible for ourselves.”
– Friedrich Nietzsche

“Simplicity is the ultimate sophistication.”  
– Leonardo da Vinci



INTEGRIty

By having clean hands and standing privately in equity as a good-faith steward of a UNA, one may not need additional, overly-complex structures and strategies to protect assets and minimize liabilities...

"Non-PROFIT"

“Nonprofit" does not equal "no profit". It simply means the UNA's primary purpose is other than to make profit for profit's sake, in order to doll it out to "owners".

A UNA may, however,
carry on a business for profit and apply any profit that results from the business activity to any activity in which it may lawfully engage.


As a non-profit, donations to certain UNAs may also be tax-deductible as per IRS code.


Here, it's simply life-affirming purposes that stand at the bow to brighten the way.

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