Non-profits in the US are popular for several reasons. Let’s explore this in more detail.
If you are not only after making profits, then you should probably consider starting a non-profit organisation, also known as an LLC (limited liability company). These organisations aim to help the general public not for making profits or increasing sales. Also, the business aims at providing research and knowledge to benefit the community. Some of the benefits of using a non-profit organisation include the following.
1. Has a separate entity
A non-profit business has a separate legal entity. It can sue and be sued on its own as compared to an informal business where the party entering into the contract is liable for any breach of contract. In addition to that, non-profit companies can enter into their contracts.
2. LLC companies offer limited liability protection
Non-profit organizations protect their directors and other stakeholders from being held responsible for the debts and liabilities that the company owns. This is different from the profit making organizations in that they hold the directors and the management responsible for the debts and liabilities of the company.
3. Tax benefits
Non-profit organisations are exempted from being taxed as an arrangement with the Internal Revenue Services. What this means is that all the money that is getting into this business is not taxed because the business also offers services to the public. Your business will be tax exempted once you fulfill all the IRS requirements.
4. It helps people
Another reason why this type of business is formed is to help people daily. This is important because the services that this type of company offers are unlimited and have the potential to benefit the public hugely.
5. For eligibility
Grant eligibility is another benefit of using a non-profit organisation. This allows the LLC Company to source funds from government businesses and the public. This helps the business to operate and expand its services as compared to relying on the fundraiser money.
6. LLCs do not become extinct easily
Unlike the profit making companies that might stop operating when the founder dies or decided to close the company, a nonprofit organization continues to operate even when the partners leave as long as the purpose of its formation remains relevant. This is because they dwell mostly in providing long-term services to the public. Most of the services provided are those that the general public cannot do without.
7. The type of job is formal
This helps in laying out the duties and responsibilities of various individuals and attract a professional candidate to work in the company. LLC has the highest chance of getting the best qualified candidates for the respective jobs, meaning that the set goals will be achieved.
8. Beneficial to employees
Employees make a huge part of any organisation. This means that the interest of the employees should be put first. If the number of employees in this business structure is enough, the employees can enjoy discounts, life insurance, and other benefits that are associated with their well-being.
9. Motivates employees
Employees of a nonprofit organization are highly motivated as compared to those working in a profit making organisation. Employees in a nonprofit organization are driven towards ensuring that their clients achieve the best services that they can provide. Moreover, these employees are doing what they love and this will motivate them to work extra hard every day.
10. No pressure of choosing board members
Choosing board members can be very challenging. It is a process that needs critical thinking and analysing the members’ strengths and weaknesses and coming up with the best fit for the position. However, with nonprofit organisations, anyone can volunteer to become a board member. This saves the company a lot of money because it does not pay its board members. Another advantage of volunteering as a board member is that you get different people with different skills and capabilities, who are perfect for the position. TRUic can help you start a non profit, so be sure to check out their site.