Welcome! About Us About Our Job Boards Info For Employers Diversity Job Candidates Improve Your Bottom Line Advantages of Niche Job Boards Benefits of Using Our MultiChannel Approach for Your Job Exposure OFCCP / Compliance Solutions Sponsorship Contact Job Search AW Career Center – Diversity Jobs All Top Tech Talent – Tech Jobs Careers Self Describing Skills – Key Strengths Effective Communications Key To Accomplishing Goals The Six C’s Of Effective Communication Exude Power & Purpose – Broadcast Your Value Career _Index Referrals Make A Difference In Getting The RIght Job Getting Fit To Lead – Habits Of Successful Leaders Career Strategies Which Career Is Right For Me? Pick A Career That Counts America’s Skills Gap Top Secrets To Make Recruiters Find You Meet The Robots Reading Your Resume Time Management Mastering The Art Of the Career Fair Career Fairs – On-site Career News Blog How To Become A Computer Programmer Closing The Gender Gap For Women In Science Time Management Entrepreneurship Entrepreneur – Start Your Own Web Business Why Start Your Own Business? Rorschach Test For Entrepreneurs – If You See Opportunity, Start A Company The History of Opportunity Money Info Establish Your Niche – Learn How To Differentiate Brand “You” Outrageously Simple Visual Guide To Goal Setting Workplace AWL Journal – Women in Leadership Studies Sponsorship Contact

Could a Non-Profit Structure Be Right for Your Business?

If you have a business idea, or an idea for a service for your community, there's one decision you must make early on: are you going to structure your project as a for-profit business, or as a non-profit corporation?

Now, it may be that you already have a clear idea about this. Some business ideas are clearly "for profit". For example, if you want to sell insurance, or stocks, that's undoubtedly a for-profit business. On the other hand, if you want to raise money for research into a cure for juvenile diabetes, that project will best be served by forming a non-profit corporation.

One difference between for-profit and non-profit organizations is that grants funding is generally reserved for non-profits. Some grants are available to for-profits (and to individuals), such as government grants to promote affordable housing or job creation in economically depressed neighborhoods. Most grants, however, and particularly grants from foundations, are given only to non-profit corporations designated by the Internal Revenue Service as 501(c)3 corporations.

In many cases it is not so easy to determine into which category a business idea should fall. One question to ask is: will my planned project deliver a service to clients? A beauty shop located in Beverly Hills, catering to wealthy women, is certainly a service business. The clients, however, are not needy. They can easily pay for the service without assistance.

So the second question to ask is: will the project assist clients who are in need? A beauty shop located in a Medicaid-supported nursing home will serve clients in genuine need - clients who could not pay for this service from their own resources.

What are the benefits of a for-profit business model? Well, first of all, the owner of the for-profit business holds personal (or corporate) title to the business and all its assets. Any money that is made by the business can be used according to the discretion of the owner. The owner can borrow against the business, or sell it and keep the profits. When the owner dies, he or she can leave the business and/or its assets to his or her heirs.

For-profit businesses exist not just to support the owner, but also to build wealth. So if you have a business idea that has the potential to build wealth for you, I recommend you stick with the for-profit business model. For example, if you have designed a widget that is apt to revolutionize its market niche, and you hold the patent, by all means produce and sell it through a for-profit business. That widget could make you rich, while offering a great benefit to your customers.

Does this mean that non-profits can't earn money? Not at all. In fact, I always encourage my non-profit clients to look for ways to become self-supporting. Many non-profit agencies generate income through contracting with other organizations to provide services. Other agencies operate businesses such as thrift stores.

The difference is that the income generated by a non-profit organization always belongs to the non-profit agency, not to the organization's founder. If the non-profit organization decides to cease operations, its assets, by law, must be donated to another non-profit agency.

While a non-profit organization may not generate wealth for its founder, a non-profit can be a vehicle that provides a very good ongoing income. Many people create non-profits to do work they love, and to create a job for themselves. The founder of a non-profit organization can become the agency's Executive Director, and draw a salary that is comparable to salaries in the for-profit sector. In some cases, the founder may choose to occupy another staff position, and turn ongoing management over someone else who functions as Executive Director.

There is also a third possibility, one that I call a dual for-profit/non-profit structure. If you have a business that provides a service that could potentially be made available to clients in need, this structure may work for you. For example, if you teach painting, you may want to charge some clients a high fee for art lessons. But you could also teach painting to disadvantaged children, and use grant funds to reimburse yourself for the work.

In order to use this structure, you could join forces with an existing non-profit, such as the YMCA, and assist them in writing a grant to underwrite art lessons. You could also set up a new non-profit agency devoted to providing arts education to needy children, enlist interested people to operate the agency, and contract with that agency to be paid for teaching. This dual for-profit/non-profit structure can work for a variety of different businesses.

Jillian Coleman Wheeler is a Grants and Business Consultant to businesses and non-profit organizations. Her website, http://www.GrantMeRich.com, is a resource site for entrepreneurs, grant writers and consultants, and offers online training for grants consultants. She is also author of The New American Land Rush: How to Buy Real Estate with Government Money. For more information, visit: http://www.NewAmericanLandRush.com

RELATED ARTICLES The Visionary Entrepreneur Any success you have in life must begin with a vision. A vision is the ability to see what others cannot see. It is being able to have a picture in your mind of exactly the result you intend to produce. The visionary entrepreneur is able to see exactly what his or her business is going to look like in every detail when it is finished. My Nemisis Living in the twilight zone has its advantages. In the early days of starting my business, I found the limitations of living in a rural area to be restrictive. However, later I realized that those limitations were not an obstacle that could stop me; they were only a challenge that would strengthen me. Since my business would be smaller, I would have the advantage of fewer employees and less strife in the processes of doing business. Getting Rich Isnt a Bad Idea You've seen plenty of articles claiming to offer you the secret to getting rich. Some ideas, however, are thin veneers covering some scheme that often involves multi-level marketing or a service with questionable intents. Documenting Partnerships in Your Business Plan Forging partnerships to improve market penetration has become commonplace, particularly for "new economy" businesses. And, most companies proudly mention their many partnerships in their business plans. Six Degrees of Separation Through just five or six intermediaries, you could be linked to millions of others. It is the notion behind what has been dubbed the small world effect. ... in Pursuing the American Dream This morning I woke up at 4:30 in the morning, as usual, poured myself a cup of coffee, as usual, and thought about what my son said to me yesterday evening. You see, he's 2 1/2 years old and talking quite well, for his age. When I came home from working all day I was greeted with the always joyous "daddy's home, daddy's home" but today, this greeting was followed by "daddy no you go to work!". It's amazing what a 2 year old can know and understand. Is Now the Right Time to Become An Entrepreneur? A number of economic changes are magnifying the role of small business and creating the impetus for entrepreneurship. Use Your Youth To Your Advantage You should wait until you're older and have more business and real-world experience before starting a business. You should just focus on school for now. Nobody will take you seriously at this age. Entrepreneurship: What does it REALLY mean? Introduction: How Home-Based Business Entrepreneurs Think Too many people are trying to start their home businesses with an ordinary employee's way of thinking. This has become a common reason why not long after sitting down and giving it a fair look into even the most lucrative business opportunity they bump into, they put it away and decide not to take any chances. Starting Your Business: 3 Tips for Bootstrapping Your Way to the Top Bootstrapping a business startup does not necessarily mean that you are unable to find traditional sources of capital. It may mean that you are clever, or that you know a bargain when you see it, or that you are the type of person who derives a certain satisfaction from crafting something using your own hands and vision, from scratch. If this is the way you feel, a franchise is probably not for you. A venture capitalist, if you could even find a member of that rare species when you are just starting out, is also likely to want some or too much control, and your vision might be thrown out of the window in that scenario as well. Meet Success: Business Profile of Sylvia Acevedo, Communicard Owner Sylvia Acevedo needed a break from her technology job so she bought an old Victorian house to remodel into a bed and breakfast. "Being an engineer working in technology, I really felt I didn't do a lot of tangible work. But with the bed and breakfast, at the end of the day, I felt like I had actually done something." Traits and Skills of Successful Internet Entrepreneurs There are certain traits and skills that many successful online entrepreneurs have in common. Some mentioned in this article may seem simple, but don't overlook their importance. Near-death Experience is the Mother of Invention for Two Dallas Electricians To morning commuters, the hulking truck encircled with barricades and traffic cones may be nothing more than a road-clogging nuisance. Franchises - A Proven Business System Franchises offer the first time business owner a proven and successful business opportunity. If you are looking to start your own business for the first time, franchises provide you with the greatest opportunity for success. When you purchase a franchise from the "Franchisor", and become a "Franchisee", you are not only purchasing a business, but a complete business system. Increase Profits with No Pain, No Change Approach Implementing changes, even when they're good for your business, can be tough. As the old adage goes, old habits die hard and it's just as true in business as it is in our personal lives. It's simply easier to take the path of no resistance and revert back to doing what we've always done. Here's a way to skyrocket your profit potential by linking change to pain and payoff. The Heroic Entrepreneur: Profiting from Your Brilliance If you look up the definition of hero in Webster's, you'll find a definition something like, 'A person noted for feats of courage or nobility of purpose, especially one who has risked or sacrificed his or her life: soldiers and nurses who were heroes in an unpopular war'. Some heroes in our lives have earned that badge of honor by doing something everyone feels is heroic as defined in the traditional sense, whether it's running into a burning building to rescue a child, pulling an injured woman from a car accident, or fighting the enemy in the time of war. The New Paradigm for Entrepreneurial Success Entrepreneurship is a great magnet to deliver new ideas, unique approaches and innovative technologies. When conducted in a proper way, turning people into entrepreneurs improves a country's economic situation and aids sustainable progress. However, transition to become an entrepreneur is not that aspiring to all. Risks and uncertainties involved in starting a new business coupled with stagnant economy discourage people to step up the plate and take a swing. 5 Habits Of Successful Entrepreneurs Habits get a bum rap. When you think about your habits, I bet you think of the "bad" ones - the ones that you aren't particularly proud of, like eating too much sugar, or smoking, or dwelling on your negative thoughts. According to Webster's dictionary a habit simply is: A pattern or action that is acquired and has become so automatic that it is difficult to break. The Magic of Thinking Small Hey!

Home |Site Map

Copyright © Advancing Women (TM), 1996- AdvancingWomen.com