I love small businesses! They bring great services and products to their local communities. There is nothing that can replace the value generated by a profit motive. However, some overlook the option of becoming a not-for-profit organization, when really it could be the best option for their growing organization.
501(c)(3) Benefits –
– Federal Tax-Exempt Status. That is a big deal when you are delivering value to the community. More of your funds for the mission.
– Donors get tax deductions. This is great for fundraising efforts if you are looking to grow.
– Retained limited liability status for leadership/boards. This is important for talent attraction and retention.
– Enhanced credibility. 501(c)(3) organizations gain their status through the IRS and make certain financial information available for the public. Transparency builds trust with the community.
– Discounted services. Many professionals are glad to provide their services, at a discounted rate, to an organization that they know has a positive impact on their community.
These are just a few benefits. If your structure, mission, and business dealings fit the mold of a not-for-profit, it could be a game changer for your organization.
https://www.irs.gov/charities-non-profits/charitable-organizations