When considering what type of business to start, you may come to understand that a nonprofit organization may be a good choice for many reasons. If you serve the public or can claim to serve a greater benefit for something other than your own profit, a nonprofit organization may be the way to go.

Nonprofit Foundations

In traditional terms, a nonprofit foundation's purpose is to serve the public or offer benefits to its clients before making a profit. Examples of this type of organization are the American Civil Liberties Union, the Committee for Missing Children and the National Association for the Advancement of Colored People (NAACP).

Tax Exemptions

Owning a nonprofit foundation can mean that the company is exempt from paying income tax. There are very specific laws that determine a company's tax exemption status, so before you assume your company is tax exempt, consider the laws in your state. Common types of nonprofit organizations that are tax exempt are those used for educational purposes, religious gatherings and prevention of abuse.

Larger Fund Opportunities

Nonprofit foundations, because they do not have to pay some fees and taxes, can earmark a larger percentage of their profits for their projects and achieving their goals than conventional businesses can.

Safety from Status

Nonprofit organizations are formed as corporations, and consequently they enjoy those benefits. For instance, in a corporation, employees and owners are not liable for the success or failure of the organization. This shields the owners from taking on that responsibility and its ensuing concerns and allows them to focus more on the goals of the company.

Satisfaction

Nonprofit organizations are geared toward helping a greater cause, and they tend to attract the kinds of employees who will find the work rewarding and satisfying. Watching your nonprofit organization grow and serve others can be the best part of your job.

Source:

Lovetoknow.com: List of Nonprofit Organizations

Society for Nonprofit Organizations: Resources

More Information:

Findlaw: Benefits and Drawbacks of Nonprofit and Tax-Exempt Status