What is a non-profit organization?

 

Non-profit organizations are important in the U.S. economy. What is a non-profit
organization?

A non-profit organization or a non-profit business is an organization created for the purpose of education, charity, artistic, religious or scientific purposes. The shareholders do not get financial benefits from the business. Money gained by the organization, should stay inside and be utilized for its operations, expenses and programs. Some of the popular non-profit organizations are Red Cross, Habitat for Humanity and United Way.  It is easy to find list of non profit organizations.

Benefits

  •  They are exempted from paying federal taxes.
  • They can receive tax-deductible contributions.
  • They are also exempted from FUTA or Federal Unemployment Tax act.
  • They are entitled to foundation and government grants.
  • They may also be exempted from state and local taxes.

Business Plan

A business plan is just the same may it be non-profit or profit business. Business
planning should help you learn the feasibility of the business, give direction and
acquire capital for setting up the organization.

Details about the Organization

This is where you will learn the history of the non-profit organization. Who is the
founder, why it was built, the reason it started and the location of the business.
You will also find in here the service, products or programs that they offer and for
whom these are for.

It is important that the business has a market. The organization has to provide
the data you accumulated regarding the nature and the number of your markets.
You also need to gather effective ideas to promote your organization.
There is also a need to distinguish the weakness and strength of your business. It
is important that you know its strength, so you can keep it work on with the
weaknesses. Make sure that you do something if your weakness is greater than
your strength.

Business plan for profit organization and nonprofit organization are different
most of the time. Profit-businesses can operate even without board of directors.
In non-profit businesses, they are required to have board of directors who will
oversee the organization’s operations and financial activates.