When you think of a non-profit corporation, you might automatically assume there is no profit made. That’s not exactly true. These corporations do make a profit in some cases, but all of it has to go right back into the organization. With that money, overhead costs such as administrative expenses and salaries can be paid.
Types of Corporations That Are Non-Profit
A corporation that is out to benefit the world is the perfect candidate for non-profit status, offering services or goods at little or no cost. Noncommercial organizations such as charities, religious groups, and educational foundations are commonly non-profit. This might include museums, churches, homeless shelters, public colleges, national charities, healthcare centers, and other similar corporations.
Being Accountable to the Public
Non-profit organizations are tax exempt, but do have to be accountable to the public. A corporation will have to keep proper records and file all paperwork on time to ensure everything is legal. Financial information must be available to the public so if individuals or companies donate, they can see where and how their contributions are being used. The corporation should also be transparent about how fundraising funds are used.
Qualifications for Starting a Non-Profit
If you have the passion and motivation to make a difference in your community and in the world, a non-profit corporation might be the best way to make a change. While there are all sorts of legal qualifications and paperwork to complete, there are some personal qualifications that might point you in the direction of such an organization. They include:
- Transferable skills such as marketing, client relations, accounting, writing, coding, and others that will help you get started.
- Assets to help you financially jumpstart the process. You could sell a property and use those funds, clean out an old office to use the space or use other assets in other beneficial ways.
- Time to establish the non-profit. This could either be your spare time, or even full-time hours if you have the savings to financially care for yourself before bringing home a salary.
- Contacts to help in your new adventure, either by joining forces, or providing services or products.
Also, consider whether or not your community has a need for the type of organization you wish to start. For example, a small town with an animal shelter probably doesn’t need another one, so that might not be the best idea.
Contacting Your Business Lawyer
When you’re ready to venture out into the world of non-profit corporations, have a business lawyer in Rockville, MD by your side to make sure everything you’re doing is legal. Contact an attorney today to get started.
Thanks to Daniel J. Wright for their insight into business law and nonprofit organizations.