What Is a Nonprofit Organization?

A nonprofit organization is a business that has been granted tax-exempt status by the IRS because it furthers a social cause and provides a public benefit. Donations made to a nonprofit organization are typically tax-deductible to individuals and businesses that make them, and the nonprofit itself pays no tax on the received donations or on any other money earned through fundraising activities. Nonprofit organizations are sometimes called NPOs or 501 (c) (3) organizations based on the section of the tax code that permits them to operate.

Why should you start a Non Profit Organization?

There are many reasons why people start nonprofits. Many simply look at it as a career opportunity, while others see needs and realize that they can do something to make a difference. Nonprofits allow their founders to create something special while gaining access to resources and building relationships with people with similar interests. A strong network of supporters can help you achieve all these things. Finding like-minded people who care about the same things can help you with everything from getting your message out to non-profit funding.