Should a not-for-profit organization incorporate? - Information, research and resources for fundraisers and their leaders: "A not-for-profit organization (NPO) has no legal requirement to incorporate; however, as an unincorporated entity, the organization would have no legal status. An unincorporated NPO is simply a group of people (members) who get together for a common purpose. What does this mean? It means the members of the organization may be personally liable for the full amount of any debts incurred by the organization. An unincorporated entity cannot sue or be sued. The members may initiate lawsuits and, likewise they may be sued for the actions of the NPO."
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