Читать книгу Nonprofit Kit For Dummies - Stan Hutton, Beverly A. Browning - Страница 27

Before you jump headfirst into making your nonprofit dream a reality, you need to absorb some basic facts about nonprofit organizations. Let’s begin with some pros: You will

 Receive exemption from taxes on most income to the nonprofit

 Be able to receive, for most nonprofits formed under Section 501(c)(3) of the IRS Tax Code, contributions that are deductible for the donor

 Have the opportunity to receive grants from foundations, corporations, and government agencies

 Get to feel that you’re contributing to the solution of a problem or to the improvement of society. As the founder, your vision is unfolding for the greater good.

Just about everyone would consider these facts to be positive, but they don’t tell the whole story. If you’re thinking of starting a nonprofit to get rich or to avoid paying taxes, consider this list of cons:

 Paying employment taxes: Nonprofit employees’ salaries are subject to income tax, like all other types of compensation. Tax-exempt doesn’t include payroll tax — it must be withheld, matched by the nonprofit, and deposited with the IRS on time every month (usually on the 15th day unless the 15th falls on a weekend or federal holiday).

 Sharing the decision-making process with a board of directors: Even though you have the vision to form a nonprofit organization, the IRS requires it to have a board of directors. The board makes the decisions and is responsible for financial, management, legal, and operational oversight. Any decisions made by the founder or executive director must be approved by the board. (See Chapter 3 for more about the board’s role.)

 Filing an annual report with the IRS: The complexity of the report increases as your nonprofit income increases. (See Chapter 6 for more information about reporting requirements.)

 Competing with others for funding: Competition for grants from foundations, corporations, and government agencies is tough, and so is garnering donations from individuals. You’ll compete with more-established nonprofits that have successful track records.

 Being unable to take any assets with you if you leave: If you decide to move on to other pursuits down the road, for example, you can’t take with you any assets accumulated by the organization you’ve built. Others will continue running the nonprofit, or else it will need to be dissolved and the assets given to another nonprofit. (See Chapter 20 for more about the process for closing a nonprofit.)

A nonprofit organization is given special privileges because it’s formed to benefit the public, not specific individuals. Think carefully about your motivation for launching one.