Sep 30, 2022
What is NPO?
NPOs are charitable organizations by providing help, relief and funds towards a cause. Nonprofits differ from businesses in their mission statements in the regard that they do not provide income for their owners. Be it educational, scientific, charitable, religious or 22 other types of Nonprofits, they are all classified as such by the International Revenue Service (IRS). NPO are further classified into Public and Private organizations. Public nonprofits are those that raise money externally from the public, the government or other organizations whereas Private non-profits are those that are funded by a specific individual, entity or corporation.
IRS grants charitable organizations with the 501©(3) status that are incorporated organizations and their mission and actions benefit the community and its interest.
Did you know? Any donations made to 501©(3) organizations are tax-deductible.
What do NPO do?
Nonprofit organizations are built to serve the community or to tackle a specific obstacle that is hindering the community. They are driven by the passion for communal & humanitarian welfare.
What are some of the key requisites for starting a non-profit organization?
1. Perform thorough research and strategic planning to create a sustainable non-profit model.
2. Assemble a quality team and develop early partnerships or collaborations.
3. Incorporate the organization, file for tax-exempt status and begin generating donations if necessary.
4. Work with your donors, collaborators and team members to improvise and optimize the organization.
5. Attend networking events, business events, and events concerning your mission statement.
What are the current trends facing nonprofits?
Nonprofits must face a challenging and competitive road due to how volatile the industry can be especially after the pandemic. There are many trends that you need to consider when operating in this industry.
1. Lack of skilled workforce
2. High competition for donations and labor by other nonprofits.
3. Growth of social media and its brand engagement capabilities.
Did you know? 90% of people aged 18-29 use social media vs only 40% of people aged 65+ who use such platforms.
Gross Output of Non-Profit institutions
2021 – 1722.7 billion dollars
2022 Q1 – 1793.3 billion dollars
Author: Jay Lakhani
Non-profit interviews by SkyHigh magazine: https://www.skyhighmag.com/nonprofit