Why get a Nonprofit status
In order to take donations and be considered a non-profit you will need a couple things. 1. Is a state Incorporation and the other is what is called a 501 (c) 3 status which you get from the IRS. The benefit is that those that donate will be able to get tax credit for their donation to your company.
501(c) 3 is a not for profit company, that means that you are conducting business to make a profit you are a public service company. If you plan on providing a service to the community or start a church or ministry this is what you would do.
Let me say this upfront!!! Setting up a not for profit 501(c) 3 is not for you to raise money for your retirement, to get paid, it is for you to again provide services to the community that you want to serve.
Reasons for setting you a not for profit,
1. A family member had a tragic disease or died for some unjust reason and you want to raise funds to either bring awareness to the problem or do research for a cure.
2. You see a lack of certain needs in your community and you have a burning desire to help rally people, funds and resources to help with that problem. Start a social program in your community.
3. You fill the call of God on your life and you want to start a work in your local community or another state and/or country, so you want to start a church or ministry to accomplish that.
4. As well as a great strategy for nonprofits (churches) be able to fund the kingdom. I have some great examples that like Salvation Army has stores that fund them and it’s a not for profit organization. Goodwill Industries is another great organization that has a store that financially supports their nonprofit.
Businesses and Social Entrepreneurship
As a business you would like to start a nonprofit to get a tax right off for your business that will provide a service (like the Bill Gates Foundation) where a percentage of their profit directly goes to their foundation that they run.
As a consultant this is what I suggest that every business owner do. I’m not an accountant, but that is how you are able to keep your money and not give it to the government.
Social Entrepreneurship is what it is called today.
“Tom Shoes” is a great example of being a Social Entrepreneurship company. They give away a pair of shoes through their nonprofit to a needed people in other countries. Their shoes are a hit because they have a cause.
People connect to causes! When you tie your company to it’s own cause that you are passionate about will bring you business and you are helping the world at the same time. You will get more press when you are talking about what you believe in and not just your product or service. They can again get behind you because when they support the cause it supports you. Now let me say this, you should believe in what you mission is in helping others and that you are so passionate about it that it will show. This is only a suggestion, but a goooood one!
In my own business model, the cause that I’m passionate about and promote is entrepreneurship for those that are poor, youth, those that just came out of prison. I offer a free program to schools, churches and other nonprofits to provide this free service as a way to give back and make a change in the community that I serve.
I also use my for profit business to fund my Christian organization. So I’m able to help churches and other nonprofit that don’t have the resources to pay me for the services that I offer in my ministry.
As you can see you can mix both for profit and nonprofit together for your and your communities good.
So if you are ready to start your nonprofit or for profit company feel free to contact me for a free consultation 909-816-4134 or Click here and my website https://briancochran.org