A nonprofit may generally pay reasonable compensation for legitimate services, subject to applicable law and tax-exemption rules. Compensation arrangements should avoid prohibited private benefit or excess-benefit transactions.

Swyft Filings offers nonprofit formation services and also provides a separate 501(c)(3) application service for qualifying organizations seeking federal tax-exempt recognition. These are distinct steps: state nonprofit formation creates the legal entity, while federal tax-exempt recognition is determined separately under IRS requirements.