Incorporating gives an organization legal status. Non-profit organizations are not required to incorporate. Whether an organization decides to incorporate or not depends on its activities and the type of organization.
When a non-profit organization is incorporated it becomes a legal entity with virtually the same powers as an individual. An incorporated organization can enter into contracts, buy land, borrow money, hold bank accounts, etc., in its own name.
Advantages to incorporating include...
An unincorporated association is created by an agreement between individuals, and has no legal status. The members are personally liable to the creditors for the full amount of any debts. An unincorporated body cannot sue or be sued; members must sue or be sued personally. Title to property must be in all the members' names if the group is not incorporated. This can make selling the property difficult.