Nonprofit Organizations
A nonprofit organization is a business exempt from paying taxes. The proceeds benefit society by providing various services and uniting communities.
Characteristics of Nonprofits
- Defined by purpose, ownership, and public support, not profit
- Mission to benefit society, public ownership, tax-exempt purposes
Converting to a Nonprofit
- Writing a mission statement
- Adopting bylaws through a board vote
- Seeking legal advice for tax status application
Measuring Success of Nonprofits
- Growth vs impact
- The example of Harlem Children’s Zone
Not-For-Profit Organizations
- Broad term for organizations not generating profit for owners
- Funds reinvested back into the organization
Activities of Not-For-Profits
- Fundraising, program, administrative
- Funds not distributed to members, directors, or officers
Differences and Similarities with Nonprofits
- Nonprofits vs Not-For-Profits distinction
- Staff requirements, purposes, and revenue generation
- Incorporation and compliance with state agencies
Starting a Not-For-Profit
- Define a mission and gather like-minded individuals
- Apply for tax-exempt status with the IRS
- Differences in tax deductibility and use of funds