What is the benefit of having a non profit?
There are benefits to having a non profit organization as well as challenges that may not be as beneficial. Review the following pros and cons of a nonprofit!
Pros and Cons of a Nonprofit…
Let’s start with the Pros:
- You will get the overwhelming satisfaction of making a difference in society
- You will receive tax exemption on most income as a 501(c)3
- You will qualify to receive grants from foundations and corporations
- You will qualify to receive tax-deductible contributions from your donors
Now with the Cons:
- Nonprofit employees are taxed on their income, just like for-profit employees
- The IRS requires the filing of an annual report with the IRS. The density of this report increases, as your nonprofit’s income increases.
- Competing for grant money is very difficult, and receiving individual donations can be challenging. You will be competing with larger organizations that are more established and have a stronger track record.
- If you decide to close your nonprofit organization you aren’t allowed to take any of the organization’s assets with you.
This entry was posted on Monday, April 1st, 2013 at 4:53 pm
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