So you have started a small nonprofit company to help your community. You wish to give back to others has finally come true. You enjoy going to work everyday and take pleasure in your dally accomplishments. Many great nonprofit companies start off small and grow to provide their services to more people. Becoming a nonprofit corporation can be profitable for both you, (the owner) and your clients.
Incorporating your nonprofit organization can provide new opportunities for more growth. In order to reach more people, money is an undisputed necessity. Even the process of incorporating will cost a large amount of money. However, being a nonprofit corporation can bring more financial opportunities your way. Certain governments and foundations will only work with nonprofit corporations. So if you need help from other third party groups, you may be denied if you are not a corporation.
The number of private donors that contribute to your organization will also increase. People seem to have more trust in a not-for-profit corporation than a smaller nonprofit business. An increase in donations will give you the funding to help more people. These donors may also save up to 40% by donating with “pretax” dollars. Donors that save more have the means to give more to your company.
Your nonprofit corporation will also be able to expand because it will function more efficiently. As a small nonprofit business, you began helping a few people at a time. Your client list was easy to manage with a small work staff. But as you reach out to more and more people, you will need a facility that can handle you clients. Incorporating your business will give you the necessary protection to expand by securing the trust of more lenders. If you run a member nonprofit organization, a corporation provides the kind of organized structure that can accommodate everyone. You now have the ability to increase your membership as necessary.
Your nonprofit corporation will also benefit from the required organized structure of all corporations. By implementing a board of directors, the decision-making process within the corporation will be more effective. Incorporating a nonprofit organization can ensure its existence will continue on even after the owner dies. Your good intentions will live on beyond your years on Earth.
Achieving all of these benefits does not come easily. The paperwork involved in incorporation can be overwhelming. You could try tackling the process on your own, but it is advised that you seek help. Before you try to incorporate, consult a lawyer about your nonprofit organization. He or she can better advise you on incorporating and if it can benefit your business. You can either stick with the lawyer or consult an incorporation service.
No matter what you decide, make sure your choice does not jeopardize your goal of helping others. This is what really matters. Make sure you have made a decision that will continue to touch the lives of those that mean the most to you. Continue to run your nonprofit organization for the benefit of others.
By Tamara C. Jude