Numerous organizations and charities work to assist individuals or communities in need. These organizations are commonly referred to as non-profits. Continue reading to learn what is a nonprofit organization is and how it differs from a not-for-profit organization.
What is a Nonprofit Organization?
A non-profit organization generates no profits for its owners. Instead, the money received by the organization is donated to help fund the organization's objectives and goals. A non-profit organization may also rely on donations to stay in business. Donations may also be used by a non-profit organization to stay in business. Businesses, on the other hand, are not automatically exempt. To obtain tax-exempt status, you must apply to the IRS. Qualifying not-for-profit organizations can apply for 501(c)(3) status to become tax-exempt.
Non-profit vs. For-profit
The primary distinction between for-profit and nonprofit organizations is how the organization manages its profits. Profits are distributed to owners of a for-profit organization or business. Although they may differ in how they handle profits, for-profits and non-profits share some characteristics. Not-for-profit organizations typically employ the same business strategies and techniques as for-profit organizations. Both organizations set goals and strive to achieve them. A for-profit company can engage in a wide range of activities. A nonprofit organization, on the other hand, must operate solely for charitable, scientific, religious, or public safety purposes.
Nonprofits vs. Not-for-profits
Many people mix up the terms not-for-profit and nonprofit. They are, however, not. Consider the following distinctions between nonprofit and not-for-profit services.
∙ The Organization's Mission
Not-for-profit: Helps a cause, an activity, or the community
Nonprofit: A charitable, educational, or religious organization
∙ Profit Applications
Not-for-profit: Provides funding for activities, hobbies, and recreation related to their cause or goal
Nonprofit: Profits are used to support the cause or goal of a nonprofit organization, but funds can also be used to pay employee salaries and administrative expenses
∙ Employees of Various Types
Not-for-profit: Volunteers, paid staff, or a combination of the two
Nonprofit: Could have both paid staff and paid volunteers
∙ Tax Exemptions are Available
Not-for-profit: Yes, it is non-profit (must be both state and federal levels)
Nonprofit: Yes, it is non-profit (must be both state and federal levels)
∙ Availability of Stock Options
Non-profit: No
Nonprofit: No
Advantages of Forming a Nonprofit Organization
Perhaps you're debating whether to incorporate your group as a charity or nonprofit organization. If this is the case, you should be aware that there are numerous advantages to converting your organization into an NPO. The process itself is not difficult, and it is well worth the effort if you want to create the change you want to see in the world with your group.
1. Tax-Free Status
A nonprofit organization qualifies for preferential tax treatment; it is exempt from federal, state, and local taxes. Because of its tax-exempt status, a nonprofit organization can devote more of its financial resources to achieving its goals.
2. Limitation of Liability
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A non-profit organization limits personal liability; nonprofit members are protected from personal liability. For example, if a legal judgment exceeds the nonprofit's ability to pay, the claimant will be unable to collect the difference from the organization's members. Unless directors or officers cause harm or engage in fraudulent activity, they will not be held personally liable.
3. Grants
Another advantage of a nonprofit organization is that it is eligible for government and private sector grants, as well as individual contributions. Despite the lengthy application process, a grant assists founders with limited funds in starting to scale their institutions.
4. Distancing the Inventors from the Organization
If the organization is involved in a lawsuit, fine, debt, or other similar legal matter, the personal assets of the individual founders are kept separate from the business structure, making them risk-free. There is an advantage here in that board members and non-profit organization employees are afforded similar safeguards. The only issue that can break through this shield is if the person in question acts unethically or illegally.
5. Enables You to Perform a Good Deed
While working in a for-profit business may simply mean a paycheck for some, being a part of a nonprofit allows people to feel like they are making a difference in society. Creating a non-profit organization allows them to feel as if they are making a difference in society by helping to solve a problem.
6. Leadership and Motivation
People who work for a nonprofit corporation claim to be motivated because they believe their contributions are valued. Because they generally work for the betterment of society, they gain a sense of fulfillment that motivates them to continue contributing. They also gain leadership skills along the way.
How do I Create a Nonprofit Organization Website?
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A non-profit organization is unlikely to have much time or money to devote to web development. However, it is necessary to have a non-profit website for the organization to have an existence and presence on the internet. It must have an appealing, user-friendly, and fully functional website. You can take steps to create a non-profit website that will save you time and money. Here are the six steps to creating a non-profit website.
A. Select a Website Building Platform
The first step is to select a suitable website building platform. You might want to choose a platform that includes most of the features needed to build a basic non-profit website in its free plan. Strikingly is a website builder that allows you to create a non-profit website in just a few hours. Its tools are straightforward, and its editor is self-explanatory. It lets you add different sections to your landing page, making your website both navigable and appealing. It will also provide you with complete control over your non-profit website.
B. Web Hosting and a Domain Name
Even though many website builders are free to use these days, creating a nonprofit website is not cheap. You must select a domain name as part of the registration process. The URL of your nonprofit website starts with your domain name. When selecting a domain name, it's best to name the site after your nonprofit organization or use a short, catchy phrase that highlights your goal. After you've built your site, you'll need a hosting plan, the "engine" that drives it and makes it available to the public. Bluehost is an excellent choice for first-time users. When you sign up for a Bluehost hosting account, you'll also receive a free domain name.
C. Select a Web Template or Theme
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The next step is to design your non-profit website. If you create a website on Strikingly, you will be taken to our template selection page as soon as you sign up. You can select a template that best suits your preferences and meets your needs. The interesting thing is that we have a few templates specifically designed for a non-profit website.
D. Enter Your Website Content
Now is the time to enter all of the information you want to share with your audience into your non-profit website. Tell your website visitors about your organization, its mission, why it exists, how it operates, and what it expects from the public. Remember to include your contact information. Include high-quality images to show your internal environment. Maintain as much transparency as possible with the information. Combining text, images, videos, and links enhance the appearance of your website and keep readers engaged. You can easily add videos, social media icons, call to action buttons, and even a blog to your non-profit website on Strikingly.
E. Include a Donation Plugin
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A donation plugin is one of the most useful plugin features for the website of a nonprofit organization. You will be able to accept donations and run fundraising campaigns with this plugin. If you build a non-profit website on Strikingly, you can accept donations using one of the payment gateways we provide.
F. Increase the Visibility of Your Website in Online Search
Finally, consider how visitors will find the website of your nonprofit organization. The primary mechanism for this will be Search Engine Optimization (SEO). Increasing the visibility of your nonprofit website in local search results means making it more visible to people in your immediate vicinity. When optimizing your nonprofit website, using the free Yoast SEO plugin and understanding how to use it is a great place to start.
Introducing Strikingly
People prefer to interact with visually appealing and simple websites. By using Strikingly to build your non-profit website, you will be able to create a professional and appealing site in a short period and in a straightforward manner. Strikingly provides features that make it simple to add all the essential elements of a nonprofit website discussed in this post. It has a drag-and-drop interface that makes adding images, videos, infographics, and other content components simple. The templates we provide are responsive and straightforward to use. Several of our users have used our platform to build a nonprofit website. We regularly update our features based on customer feedback to make your website building experience more accessible and smoother. We currently offer a 25% discount on your first payment for non-profit organizations (so we recommend getting the yearly plan to save even more). If you are interested, please contact us via email or chat support, along with the name and EIN of your non-profit organization.
Conclusion
Your non-profit website's success will be largely determined by your ability to draw public attention and create an online community around it. The mission of a nonprofit organization or initiative must be communicated to the public in various ways. Its non-profit website can become the primary means of conveying this message if it is appealing and gains enough traction in a short time.
