A not-for-profit corporation is a corporation formed pursuant to the New York Not-for-Profit Corporation Law.
The Certificate of Incorporation of a New York not-for-profit corporation must set forth the specific purposes for which the corporation is being formed and the corporation may not be formed for financial gain.
There are four types of not-for-profit corporations:
Type A – A not-for-profit corporation formed for any lawful non-business purpose or purposes including, but not limited to, any one or more of the following non-pecuniary purposes: civic, patriotic, political, social, fraternal, athletic, agricultural, horticultural, animal husbandry, and for a professional, commercial, industrial, trade or service association.
Type B – A not-for-profit corporation formed for any one or more of the following non-business purposes: charitable, educational, religious, scientific, literary, cultural or for the prevention of cruelty to children or animals.
Type C – A not-for-profit corporation formed for any lawful business purpose to achieve a lawful public or quasi-public objective. Although the corporation may be organized for a purpose normally carried on by a business corporation for profit, its purpose must be non-pecuniary (formed for a purpose other than making money). Therefore, it is necessary to include a separate statement in the certificate of incorporation describing the lawful public or quasi-public objective each business purpose will achieve.
Type D – A not-for-profit corporation formed under two New York laws for any business or non-business, or pecuniary or non-pecuniary, purpose when such formation is authorized by any other law of New York. For example, a corporation formed under the Not-for-Profit Corporation Law and the Private Housing Finance Law.