There is a wide spectrum of organizations that can fall under the nonprofit umbrella – including churches, public schools, public charities, public clinics and hospitals, political organizations, legal aid societies, volunteer services organizations, labor unions, professional associations, research institutes, museums, and some governmental agencies (Cornell Law School). And together, they make an impactful difference in all of our lives.
Yet, when it comes to starting and operating nonprofit or not-for-profit organizations, there are many myths and misunderstandings. For instance, did you know that not all nonprofits qualify for federal tax exemptions? In fact, at this time the IRS recognizes about 30 types of nonprofit classifications.
Also, while it’s true that nonprofits are usually formed for a cause or purpose other than generating profit, most nonprofits actually make money! As with any business, profit is important for sustainability and growth. Unlike their for-profit counterparts, surplus funds are usually reinvested to enhance nonprofit operations or used for charity work – never for individual gain.
Knowledge is crucial for all businesses to succeed, and nonprofits are no different. They must follow stringent practices and policies to keep their designation and protections as a not-for-profit organization (for example: ability to accept tax-deductible donations, qualify for tax exempt status, benefit from reduced postal rates, etc.). Leaders must run solid operations for their organizations to continue their missions.
Below are resources to help educate nonprofit leaders, employees, and volunteers in order to promote and strengthen not-for-profit operations.
National Council of Nonprofits
This site covers everything from defining nonprofit businesses, to links for research, reports, trends and policies, and data to run your not-for-profit business.
Society for Nonprofits
Find free resources including a fundraising guide; a collection of sample templates, handouts and other documents; social networks; FAQs; and multiple nonprofit operations links.
LAN Infotech
In addition to the IT management and support they provide for nonprofit businesses, charitable foundations, and startups, this company offers a free grant funding program that’s worth checking out.
* DISCLAIMER:
The contents of this site is targeted to a U.S. audience. This information is provided solely for reference purposes and should not be construed as providing legal or tax advice, nor as an endorsement for any particular business, organization, or institution.
Author: Julie Ramdial, President of U Learn Enterprises, Inc.
