Legal Question in Business Law in California

Re: Non profit - incorporate?

Incorporation is a good idea, although California law recognizes and allows unincorporated non-profit associations as well; see Corporations Code sections 18605 to 18640 for some (by no means all) of the laws affecting them and their members.

In addition to California law, any person or entity claiming to be a non-profit and soliciting donations should be very familiar with Internal Revenue Service regulations pertaining to donations, charities, and tax deductibility, and should consider whether it must qualify under Internal Revenue Code section 501(c)(3) or another subpart of 501(c) to avoid IRS difficulties for it, its members, or its donees.

Before you solicit or handle donations, you should consult with an attorney with nonprofit experience to be sure your fundraising methods and funds-handling procedures will meet the requirements of the State Attorney General and the IRS, both of which have rules to prevent scamming donors and evading taxes by bogus charities.