Non-Profits

While some government grants and corporate grants are available to individuals and for-profit businesses, the greatest numbers of grants, whether from foundations, corporations, or government, are available to non-profit corporations. Tax laws make it possible for wealthy individuals, families, or businesses to redirect money they would otherwise have to pay in taxes, to underwrite charitable causes.

This money must be granted, however, to organizations which have qualified for non-profit tax status. In the United States, that means organizations which have obtained 501(c)(3) status from the Internal Revenue Service. In Canada, and most other countries, the government taxing authority offers similar designations to qualified organizations.

Non-profit corporations may be established to receive money that will be used for a charitable purpose, for the benefit of the community. If you have a community project, you can use the non-profit structure to find grants to fund your work, and to provide a salary to you while you do the work you enjoy.

It is often possible, also, to create a parallel structure of a business and a non-profit corporation, and thus provide indirect support to a business. An example might be a dance studio that offers classes to both private pay and low-income students. A parallel non-profit might be established to receive grant funds to provide scholarships to low-income dance students.

If you would like to learn how to set up your own non-profit organization, and how to structure a non-profit to maximize your access to grants, we offer a class called “Create Your Own Non-Profit.”  Although we do provide state-by-state guidelines, the class focuses particularly on the steps you must take to avoid future problems and ensure the success of your project.

Learn more about our training, and see testimonials from former students.

 

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