Non-profit companies

A non-profit is a tax-exempt organisation that serves the public interest. Generally, this type of organisation must be generous, instructive, technical, religious or fictional. The public initially expects to make contributions to these organisations and deduct these contributions from their federal taxes.

A non-profit organisation is one that does not declare a profit, however, utilizes all revenue accessible after normal operating expenses in service to the public interest. Articles of incorporation from the organisation must be filed when commencing a non-profit cooperation stating where it will reside or deciding its jurisdiction for legal purposes.

Advantages of a non-profit corporation

  • Opportunity to help the community through funds and volunteer work
  • Does not have to pay taxes on the money it raises
  • When it comes to debts registered non-profits have limited liability under the law
  • Non profits have access to sponsorships from the government and private grants as well as loans that for-profit companies they do not
  • Non-profits helps create paid jobs

Disadvantages of a non-profit corporation

  • They rely on fundraising and contributions to provide services and resources
  • Raising funds is difficult and even more so when the economy is poor
  • The must report how they use their funds
  • All donors like to see most of the funds go to services and not administrative purposes
  • They have to strive hard to get these donors to donate or volunteer when they likely get no tangible benefits in return