What is a Nonprofit Organization?
Did you know that 26 different types of nonprofit organizations are recognized by the Internal Revenue Service? The word nonprofit has different meanings to different people. Legally, a nonprofit organization is one that uses all revenue remaining after everyday operating expenses in some kind of service to the community or general public and does not declare a profit. It may be incorporated or unincorporated; most are incorporated because of the legal protection the corporation format provides. Nonprofit corporations are much like for-profit corporations except that they have no shareholders.
Nonprofits usually have paid and volunteer staff and are subject to the same workplace rules and employment taxes as for-profit firms. Tax-exempt nonprofits do not have to pay federal taxes, but may have to pay state taxes depending on their locations.
Nonprofits often market themselves in order to obtain revenue for products or services offered to clients, and are concerned about the satisfaction of individuals who receive the goods or services and individuals who contribute time or money. Nonprofits generally succeed or fail in much the same way as any other type of business, and operation standards and techniques can be extremely important to their futures. It is important to remember that institutions like universities and hospitals are considered nonprofits as well as large charities.
Finding a Nonprofit Organization
If you are looking for volunteer opportunities, jobs, research information, goods and services information, or a variety of other things, you may find it necessary to search for nonprofit resources. Well known nonprofits like the Red Cross and Girl Scouts are publicized relatively often and are easy to learn about through commercials and other advertisements, printed literature and public appearances. Less well-known nonprofits that are smaller or more narrowly defined may be more difficult to learn about.
Internet search engines may be the most efficient way to search for specific nonprofits and databases of nonprofit information. If you are looking for volunteer information, volunteer database Web sites like Idealist.org can help you search for exactly the type of opportunity you want, in your area. If you are looking for information about a specific nonprofit or about whether any nonprofits dealing with a specific issue exist or are located in your area, you will want to search for the specific issue with a search engine. You may also be able to learn about nonprofit resources in your area from your local government business and organization listings.
Starting and Running a Nonprofit Organization
One of the most complete nonprofit resources available to individuals who are starting a nonprofit or involved in the business operations of one, is the United States Government’s official Web portal, FirstGov.gov. This site provides a wealth of information about agency-specific topics, fundraising and outreach, grants and loans, laws and regulation, management and operations, online services, registration and licensing, and tax information.
Several other organizations that can be found on the Internet, like the Center for Nonprofit Resources, can also help founders and managers of nonprofits. Whether you are currently involved with a nonprofit or are interested in getting involved with one, researching relevant nonprofit resources can be very helpful in finding the information you need.
By Kristin Cleveland