Why Starting a Nonprofit Could Be the Best Thing for Your Business (4 Video Links)
Starting a nonprofit can be one of the best things you ever do for your business. It can help you attract new customers, increase brand awareness, and make a difference in your community. In this blog post, we will discuss the benefits of starting a nonprofit and provide some tips on how to get started. We will also cover the steps you need to take to register your nonprofit with the IRS. So if you’re thinking about starting a nonprofit, read on!
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Contents
Increase Your Visibility
By creating a nonprofit, you can make your business more visible in the marketplace. This visibility can help to create brand awareness and bring attention to your services or products. For example, if you create a nonprofit dedicated to helping homeless people, your business can be seen as socially responsible and more likely to attract customers.
Attract New Customers
Being associated with a good cause can be very attractive to potential customers. People are often willing to support companies that give back to their communities, which can result in an increase in sales and loyalty from new customers. For example, if you run a clothing company and create a nonprofit that helps homeless people, your message of giving back could attract customers who are looking for a socially responsible purchase.
Get Tax Benefits
Nonprofits are eligible for certain tax benefits that other businesses may not have access to. These include exemptions from federal income taxes, deductions for donations received, and even state tax credits for contributions made. For example, if you are a nonprofit with 501(c)(3) status, then your donations may be tax deductible for the donator.
Make a Difference
Perhaps one of the best reasons to start a nonprofit is to make a difference in your community. From providing services or products to those in need to helping the environment, creating a nonprofit can be an incredibly rewarding experience. For example, if you own an animal shelter, starting a nonprofit can help you to further the cause and make a real impact.
Or take The Belinda Stronach Foundation, for example: an organization that seeks to help others by focusing on three pillars – Girls and Women, Malaria, and Aboriginal Youth. Homing in on a niche like this and digging into the details is a great way to grow.
Tips on How to Get Started
If you’re interested in starting a nonprofit, there are several steps you’ll need to take. First, you’ll have to decide on the purpose of your organization and create Articles of Association that outline its objectives and activities. Next, you will need to register your nonprofit with the IRS by filing Form 1023-EZ. You must obtain 501(c)(3) status from the IRS so your donations will be tax deductible for donors. Research sites to help you grow your charitable donations. Finally, you should create a website for your organization to provide information about your mission and services and encourage donations. Also, you will need to obtain insurance coverage to protect your organization and its staff.
Starting a nonprofit can be an incredibly rewarding experience that allows you to make a difference in the world while also benefiting your business in many ways. With some time and effort, you can establish an organization that helps others while helping to build your own brand visibility and customer base. Consult with a CPA and an attorney regarding the formation of a nonprofit entity.
Ken Boyd
Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies
(amazon author page) amazon.com/author/kenboyd
(email) ken@stltest.net
(website and blog) https://www.accountingaccidentally.com/