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7. Membership in a Nonprofit

Unlike a regular corporation, a nonprofit corporation does not have stockholders. This is because nonprofit corporations do not issue stock. Instead, nonprofit corporations can choose to have members.

A formal membership structure often grants members certain basic rights, such as the power to vote for directors and approve a sale or merger. Most nonprofits (especially smaller ones) do not have members, due to the additional paperwork and required formalities.

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Even without members, other people may still participate as advisors, patrons or contributors, but without a formal vote. However, if your nonprofit is a club or social organization, it might make sense that all of the members have a formal vote on certain important matters.

To learn more and speak with a representative, please call us at (888) 381-8758.

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