What governs the formation and operation of nonprofits in Arizona?

The formation and operation of nonprofits in Arizona are governed by the Arizona Nonprofit Corporation Act. This legislation establishes specific guidelines and regulations tailored to nonprofit organizations, setting forth the processes for their incorporation, governance, management, and dissolution. It provides essential legal frameworks for structuring a nonprofit, including the requirements for articles of incorporation, bylaws, and the rights and obligations of members and directors.

In contrast, the Arizona Partnership Act primarily pertains to the formation and operation of partnerships, which operate under different legal and financial structures than nonprofits. The Arizona Business Corporations Act deals with for-profit corporations, governing their formation, management, and financial obligations, which are distinct from those of nonprofit entities. The Arizona Trust Act is concerned with the creation and management of trusts rather than organizational structures like corporations. Thus, the Arizona Nonprofit Corporation Act is the correct legal framework that directly addresses the specific needs and regulations for nonprofit organizations in Arizona.