Benefits of Nonprofit Organizations

Starting a nonprofit company is one of the most rewarding ventures you’ll ever tackle. Nonprofit companies enjoy a plethora of benefits that are not available to other corporate entities. The paperwork and organization of a nonprofit is a lot more difficult than it is for a LLC, or other profit corporation – but, if your business is targeted toward one of the areas acceptable by the IRS to be called “Nonprofit” it’s well worth the effort to incorporate in this manner.

What are some of the benefits of choosing to become a nonprofit?

Some benefits of nonprofits:

Nonprofits can enjoy tax exempt status. If your nonprofit org. qualifies under the IRS 501(c)(3) statutes as a public charity then it’s eligible for federal tax exemption – for federal corporate income tax.

Nonprofits that enjoy this status will likely also enjoy the same benefit at the local and state tax levels. Nonprofits wishing to become tax-exempt must make application to the IRS and to local and state government concerns in order to be awarded tax exempt status. Nonprofits are not automatically tax-exempt!

Nonprofits can get grants from private and public sources. Employees of  Nonprofits can solicit for donations from the public and companies. If individuals contribute to the nonprofit they also benefit through realizing certain tax benefits. There are many companies, foundations, and government groups that limit giving away their grants only to nonprofit charities.

Bill Gates, founder of Microsoft gives away tens of millions of dollars each year to nonprofits. Google, Yahoo, Amazon, and other companies have foundations in place that regularly grant money to nonprofit agencies. Millions and millions of dollars are given away each year by major information technology based companies alone.

Nonprofit organizations are a separate entity from the owners. Owners enjoy some protection of their personal assets in most cases, except those involving intent to deceive, fraud, and other crimes.

Nonprofits enjoy limited liability in court cases. Courts are limited as far as judgment against the nonprofit company. The owners, directors, members and employees are usually not personally responsible for any of hte nonprofit’s debts or liabilities.

Non-profit incorporation is growing every year as more entrepreneurs understand the concept. Nonprofits are an exceptional way to go… they provide people that need help with resources, money, and tools that they would not have had otherwise. The government recognizes nonprofits and holds them in very high regard, bestowing on them many benefits that other companies (corporate entities) don’t enjoy.

What are you waiting for? Start on your nonprofit corporation today by filling out our nonprofit form here >

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