It's actually a very smart way to go if you are talking about incorporating as a non-profit. This is a special type of incorporation which is a very simple process. It usually just involves meeting some basic criteria, filling out a form, and paying a small fee (like $25) to your state.
I think the main benefit is that it changes the group from a "collection of individuals" to a legal business entity - thereby reducing the personal liability of the officers and board members.
It's a fairly routine step in the process of formalizing operations - although not everyone does it. My group didn't understand this needed to happen BEFORE the 501(c)(3), so we probably won't incorporate now. It would mean re-applying for 501(c)(3) as essentially the old organization ceases to exist and a new one is formed. But understanding the benefits as we do now, our first choice would have been to incorporate.
Had to through this one out to you folks--Have you every heard of a Parent Group as a corporation? The parent group on "the other side of town" is set up as a corporation! Any idea why this may be? Rockne any thoughts on this? What would the benefit be? Do you think they are paying their board members or something? Very weird!
