Legal Question in Business Law in Michigan

Charities are generally formed as nonprofit or not-for-profit (yes, there's a difference) companies, so your either/or question merges into one answer.

To form a non- or not-for-profit organization, you need to enlist the services of a good CPA and a good business lawyer; at least one of these folks needs to have gone through the formation of a charitable organization before. Non- and not-for-profit statuses have tax ramifications in which the government forgoes collecting most or all of the taxes that it gets from a for-profit organization of the same size and income level; you KNOW how remarkably unenthusiastic the government is about giving up revenue.

The organization must be formed to fit within the specific IRS and state codes governing non- and not-for-profits, the purpose for the organization's existence must be clearly stated in its formation documents, and the language in the formation papers must precisely match the language required by federal and state statutes, caselaw, rules and regulations. There is an application process to go through which may include one or more audits of the organization's activities and its finances. Other requirements may also exist at your state level.

The short answer to your question is HIRE A LAWYER AND A CPA to help you form your organization.

That said, charitable organizations are formed all the time; there are hoops to jump through, but you can do that and meet all the requirements reasonably easily if you have your organization done right.

THIS POST CONTAINS GENERAL INFORMATION AND IS INTENDED FOR ENTERTAINMENT PURPOSES ONLY. IT DOES NOT CONSTITUTE LEGAL ADVICE, NOR DOES IT CREATE ANY ATTORNEY-CLIENT RELATIONSHIP. FOR LEGAL ADVICE ON YOUR PARTICULAR MATTER, CONSULT YOUR ATTORNEY.