To be nonprofit or not to be nonprofit, that is the question!
While it is a rather complex process to determine whether nonprofit status is right for your company or not (we’ve been in process on it for two years now) there are a few simple considerations you should include in the mix.
1. Are you making enough as a for profit? If the answer is yes, stop right here and call Guinness, you may the only successful for profit theatre in North America! If the answer is no but we could be, you’re in good company, and if the answer is no! Don’t worry, we’ll help you.
2. Do you have someone willing to put in the time looking for donations or filing grant proposals? This in and of itself, as it turns out, is a full time occupation and unless you have someone that is competent and available nonprofit will be a very tough gig for you.
3. Do you have potential funding sources asking for your nonprofit status in order to give? First of all tell them advertising is tax deductible as a business expense, and they are probably not taking full advantage. If you don’t, then remember you will be starting from scratch!
Here are a few pros and cons on nonprofit status: Pro, you can beg in the street if you want it is a license to solicit donations to your hearts content as long as you stay aboveboard and keep really good records! Pro, people seem to have a more charitable attitude to someone with nonprofit status. Pro, there are many government and private industry programs that only non-profits can apply for.
Con, the money isn’t yours anymore. You can’t just spend what’s left at the end of the year. Con, all assets (costumes, tools, props, buildings) that are purchased by the nonprofit, belong to the nonprofit. Should you choose to disband it everything must be disbursed to other nonprofits. Con, there is a lot of record keeping. Con, people think they own you when they start giving to your work.
So as you can see there are many arguments for and against. Whatever you decide to do, come back and see us when you're rich and famous and be sure to let everybody know you learned it here!
While it is a rather complex process to determine whether nonprofit status is right for your company or not (we’ve been in process on it for two years now) there are a few simple considerations you should include in the mix.
1. Are you making enough as a for profit? If the answer is yes, stop right here and call Guinness, you may the only successful for profit theatre in North America! If the answer is no but we could be, you’re in good company, and if the answer is no! Don’t worry, we’ll help you.
2. Do you have someone willing to put in the time looking for donations or filing grant proposals? This in and of itself, as it turns out, is a full time occupation and unless you have someone that is competent and available nonprofit will be a very tough gig for you.
3. Do you have potential funding sources asking for your nonprofit status in order to give? First of all tell them advertising is tax deductible as a business expense, and they are probably not taking full advantage. If you don’t, then remember you will be starting from scratch!
Here are a few pros and cons on nonprofit status: Pro, you can beg in the street if you want it is a license to solicit donations to your hearts content as long as you stay aboveboard and keep really good records! Pro, people seem to have a more charitable attitude to someone with nonprofit status. Pro, there are many government and private industry programs that only non-profits can apply for.
Con, the money isn’t yours anymore. You can’t just spend what’s left at the end of the year. Con, all assets (costumes, tools, props, buildings) that are purchased by the nonprofit, belong to the nonprofit. Should you choose to disband it everything must be disbursed to other nonprofits. Con, there is a lot of record keeping. Con, people think they own you when they start giving to your work.
So as you can see there are many arguments for and against. Whatever you decide to do, come back and see us when you're rich and famous and be sure to let everybody know you learned it here!
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