What is a Nonprofit Organization?
A nonprofit organization, also known as “not-for-profit” is a type of organization which is committed to helping and or supporting a social cause or opinion. Many churches and hospitals are non-profit organizations. There are many diverse types of nonprofit organizations, which can be identified by a certain code, such as 501(c)3 for tax recording purposes.
Here are a few more examples of nonprofits:
*LALA Nonprofit Org’= Leave A Legacy Always. Is a nonprofit company which helps others improve their quality of life through financial education. They help others learn how to manage money and how to pass money to the next generation to create generational wealth.
*SPCA= Society for the Prevention of Cruelty to Animals. This nonprofit company helps to shelter and protect animals that have been abused or to help prevent abuse of animals.
*United Way, is a nonprofit company that helps fund other nonprofits. United Way also helps people in their local community with various needs.
All nonprofits’ can and do make a profit in business. Often, in the beginning they do not make a profit as quickly and this is expected, for a short while. Nonprofit organizations rely on other companies, individuals, sales and providing services to help fund their cause and or gain a profit.
There are multi-million dollar revenue generating, non-profit organization in existence today! Don’t get it twisted! Non-profit organizations, earn a profit doing business or they would not be able to remain in business. The term ‘non-profit’ comes from the IRS (internal revenue service) because of tax reasons. Nonprofits are exempt from paying certain taxes because of the public service the organization provides to help others, to help the environment or help society in a certain way.
To learn more about nonprofit organizations visit the web site: https://www.irs.gov/charities-and-nonprofits Regardless, if you are employed by a profit or nonprofit company, or if your business is profit or nonprofit, you always want your financial totals to be in the black. Until next time, keep your mind on your money.