Looking to start a non-profit or not-for-profit business?
Do you need a better understanding of a non-profit or not-for-profit business? Katie Lawson Law can help get you started.
We help you file your articles of incorporation, apply for your 501(c)(3) tax-exempt status, get your federal tax ID and register with the state.
Give back and make a difference in your community. Get tax-exempt status and attract more donors.
Non-profits
A nonprofit organization is a business that receives special tax-exempt status from the US Internal Revenue Service (IRS) if its mission and purpose is to advance a social cause and offer a public benefit.
Nonprofit organizations do not pay income tax, property taxes, or sales tax. Examples of business entities in the nonprofit sector include charitable organizations, private foundations, most colleges and universities, houses of worship, and research institutions.
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Supports charitable, educational, or religious purposes
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Profits are used to support the organization’s cause or goal, but funds can also be used to pay for employee salaries and administrative need
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Could have paid staff as well as paid volunteers
Not-for-profit
Not-for-profit is a broad term for organizations that do not generate profit for their owners. All money generated by a not-for-profit business must be reinvested back into running it.
Unlike nonprofits, not-for-profits are not required to operate specifically for the benefit of the public or the advancement of a social cause. A not-for-profit can simply operate to serve the goals or special interests of its members. For example, a recreational sports club can operate as a not-for-profit.
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Supports a cause, activity, or the community
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Funds activities, hobbies, and recreation related to their cause or goal
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Volunteers, paid staff, or a mixture of both
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Social organizations, community organizations