WHAT IS A NONPROFIT ORGANIZATION: Definition and Examples

NONPROFIT ORGANIZATIONS
image source: Habitat For Humanity of Broward

By helping those in need, nonprofit organizations meet a critical societal need. They provide a range of services without asking clients for money. Consider joining or founding a nonprofit organization if you’re interested in a career in philanthropic work. In this post, we describe what a nonprofit organization is, a list of examples, how they function with 501c3, the many kinds, and how to start one.

What is A Nonprofit Organization

A nonprofit is a business that, by law, is exempt from paying taxes to the government since the proceeds from its operations benefit the nation’s citizens. A nonprofit offers uncompensated services to a nation’s citizens. Nonprofit organizations frequently provide services like food, housing, healthcare, legal assistance, advocacy, and education. Additionally, nonprofits help to organize neighborhoods and unite individuals around a similar goal.

How Do Nonprofits Operate?

Donations from individuals, groups, and the government support nonprofit organizations’ operations. The organization uses every dollar collected to further its goals. At the end of the fiscal year, they neither declare a profit nor disperse it. Nonprofits can pay wages and hire staff, but they must use the remainder of their resources to deliver services.

Types of Nonprofit Organizations

There are numerous distinct nonprofit organizations and causes, and the majority of them fall under one of the following categories:

  • Chambers of commerce: Chambers of commerce assist in regulating business and commercial activity in society. They support corporate interests, promote ethical business conduct, and strengthen linkages among business communities.
  • Labor unions: Because they provide a forum for promoting the shared interests of workers, labor unions qualify as nonprofit organizations.
  • Disaster relief groups: These organizations offer assistance to people affected by disasters like starvation, war, earthquakes, tsunamis, and hurricanes.
  • Medical organizations: Some medical organizations may also be registered as NGOs. They travel to other nations where there is an urgent need for physicians, nurses, and other medical staff.
  • Religious organizations: Because they support individuals in their beliefs, religious and faith-based organizations including churches, mosques, synagogues, and temples are all regarded as nonprofits.

How to Start a Nonprofit Organization

Starting a new for-profit company is analogous to starting a nonprofit organization. Before the government may grant a nonprofit tax-exempt status, it must fulfill its established objective. Follow these steps to launch a nonprofit:

#1. Determine the Objective.

The first thing to realize when forming a nonprofit is that it needs to have a goal. Choose the underserved or unmet need that your organization will fill. Finding your specialization can help you understand how to create a message that will appeal to contributors, just like in for-profit commercial initiatives.

#2. Plan Your Business.

Even though a nonprofit is not regarded as a business, it nevertheless needs a business plan outlining the services it will provide, how it will raise money, and how it would spend that money. You will be able to raise money from businesses that desire to assist charity causes with the aid of a viable business plan.

#3. Register As a Nonprofit

Until an enterprise is designated as a legal entity, it is not regarded as one. Visit the website of the National Association of State Charity Officials (NASCO) and search for your state to file to register your nonprofit. You must choose whether your nonprofit will have the legal form of a trust, corporation, or association.

#4. Establish a Board of Directors.

A nonprofit is required to have a governing board, which aids in managing the organization’s operations. This means that even while you are the nonprofit’s owner, you do not have sole authority to control how the entity is run. A nonprofit organization must have a board in order to guard against misuse of trust. This organizational governance structure aids in creating checks and balances.

#5. Obtain Nonexempt Status by Filing

Although your company may be registered as a nonprofit, tax-exempt status is not granted immediately. In order to declare that your organization wants to be tax-exempt, you must submit form 501(3)(C) to the IRS. Before you may function as a tax-exempt organization, the IRS will decide and reply to you. There may be a three- to twelve-month wait.

#6. Follow The Law’s Requirements

Make sure to stay in compliance with all legal rules or prerequisites for nonprofits in order to continue to exist as a legitimate nonprofit entity. Among the obligations include maintaining correct records and submitting a 990 form on an annual basis. This document assists in maintaining your entity’s tax-exempt status.

Examples of Nonprofit Organizations 

Every nonprofit is different, and there are countless ways to use social media and digital technology to pave the way to success. Here are a few wonderful and motivating examples of nonprofit organizations that are maximizing digital media to meet their fundraising goals.

#1. WATERisLIFE

A non-profit organization that discovered a trending hashtag and creatively utilized it is the WATERisLIFE campaign. They made a movie featuring real people in need reading out these first-world difficulties while using the hashtag #firstworldproblems, such as “I hate when my leather seats aren’t heated.” The film has received over seven million views and makes a very strong argument on the need to donate by contrasting the living conditions of those in the third world with our relative luxury.

#2. Greenpeace

Greenpeace, an environmental non-profit, exploited GPS technology to raise awareness of their cause. They collaborated with a group of experts to produce a live broadcast that used GPS technology to trace whale migration through perilous waters to the south, where they are hunted. The “Great Whale Trail” campaign urged participants to create personal fundraising pages and solicit donations from their networks in order to advance the cause and safeguard whales. 

#3. Human Rights Campaign

The Human Rights message is a fantastic example of how to use Facebook profile images to promote a message far and wide. The Human Rights Campaign urged individuals to change their Facebook profile pictures to the group’s insignia, a red “equals” symbol, in 2015, when the Supreme Court was debating a significant case involving marriage equality.

#4. Charity: Water

When they held a Google Hangout fundraising event with a variety of thought leaders from around the world, one clean water organization used social media in a really inventive and unique way. These featured speakers were accessible for private 30-minute Q&A sessions for the entire 24 hours. A certain number of seats within the hangout were available for purchase, and attendees had the option to ask any questions they desired. It was a win-win situation because they were able to ask incredibly creative minds precise questions while also helping a worthwhile cause.

#5. Social Tees Animal Rescue

This New York-based animal rescue organization leveraged the popularity of the dating app Tinder to find new owners for their canines. They made Tinder profiles for the dogs, and when someone matched them and swiped right, they received messages explaining how to adopt the dog. The Tinder match was urged to donate money, foster a pet, or offer to walk dogs if they weren’t able to adopt. According to the theory, individuals use Tinder to find love and companionship, and dogs are perfect for showing unconditional love, friendship, and dedication.  

Nonprofit Organizations List

Are you looking for a list of nonprofits that are categorized by area of expertise? Here is a partial list of non-profit groups organized into several focus areas. Despite the fact that some of the organizations may fit into more than one category, each organization is only listed once and is grouped according to its main field of interest.

#1. Animal Rights

Animal rights organizations work to defend the rights of animals and the environments in which they live through advocacy, as well as through practical and instructive projects. They are:

  • Animal Legal Defense Fund
  • Animal Welfare Institute
  • Elephants
  • Thinkstock
  • African Wildlife Foundation
  • American Humane Association
  • American Association for the Prevention of Cruelty to Animals (ASPCA)
  • Best Friends Animal Society
  • Born Free USA
  • Defenders of Wildlife

#2. Land Conservation and the Environment

Through programs for conservation and education, these organizations work to save the environment. These types of organizations may concentrate on research, hands-on work, or political and legal advocacy. They are as follows:

  • Appalachian Trail Conservancy
  • Beyond Pesticides
  • Carbon Fund
  • American Farmland Trust
  • American Forests
  • American Rivers
  • Center for Biological Diversity
  • Chesapeake Bay Foundation

#3. Refugees

These groups offer assistance to those who have to flee their homes because of war, starvation, political instability, illness, or a natural disaster. They are:

  • American Near East Refugee Aid
  • American Refugee Committee
  • International Rescue Committee

#4. Medical Assistance

People who might not otherwise have access to inexpensive treatment due to financial, social, or geographic constraints receive medical relief and help through these organizations. These groups might also offer immediate medical assistance. they include:

  • Medical camp in the remote village of Jharkhand, India
  • Medical camp in the remote village of Jharkhand, India
  • © Samrat35 | Dreamstime.com
  • AmeriCares
  • Direct Relief International
  • Doctors Without Borders
  • International Medical Corps
  • Medical Teams International

#5. Poverty

These organizations provide a range of services to the economically underprivileged throughout the world, including housing, health care, advocacy, education, and anti-hunger initiatives. They are:

  • Catholic Charities USA
  • Catholic Relief Services
  • Christian Appalachian Project
  • Christian Relief Services
  • Coalition for the Homeless

#6. Cancer Support and Research

These cancer charities offer assistance to those who are battling the disease as well as to those who care about them. Education and emotional assistance are examples of support. Below is the list:

  • American Brain Tumor Association
  • American Cancer Society
  • Cancer Recovery Foundation
  • Cancer Research Institute
  • BreastCancer.org
  • Cancer and Careers

List of 501c3 Nonprofit Organizations

Some of the best, most reputable 501c3 nonprofit organizations in the US have made our list on this. These nonprofit organizations support a variety of causes. This list contains further information about the 501c3 nonprofit organization.  

#1. Transparent Hands

Transparent Hands, the most well-known online site for crowdfunding in the healthcare industry in Pakistan, has assisted more than 53,000 individuals in need since 2014. The group offers a wide range of complimentary health services, including surgeries and medical procedures, and they also plan health camps for neglected areas.

#2. Goodwill Southern California (GSC)

The goal of Goodwill Southern California (GSC), a nonprofit organization founded in 1916, is to help people who face obstacles to employment in the region’s labor market as well as local businesses looking to fill positions with competent candidates. They help with people’s education, training possibilities, work chances, and job employment services.

#3. Catholic Charities USA (CCUSA)

Tax deductions are available for donations made to Catholic Charities USA (CCUSA), a charitable organization recognized as 501(c)(3) by the Internal Revenue Service. They uphold transparency in every facet of their business. They provide food and rent assistance to eligible and needy people. The charity also offers aid to people affected by natural catastrophes. 

#4. The Nature Conservancy 

The organization is able to have an impact on conservation efforts in more than 70 countries and areas thanks to its huge staff of professionals, researchers, and participants. They concentrate on stopping the loss of species and figuring up ways to combat climate change. By reducing their carbon footprint or giving their resources, individuals may make a difference.

#5. Cystic Fibrosis Foundation

The Cystic Fibrosis Foundation is committed to eradicating the disease or discovering a cure. It offers financial support for a wide range of research initiatives that look into the illness from various angles. The goal of the Cystic Fibrosis Foundation, a 501(c)(3) nonprofit organization with headquarters in the United States, is to provide the means for treating cystic fibrosis and to guarantee that those who have it live long and happy lives.

#6. St. Judes Children Hospital

A pediatric treatment and research facility for kids, St. Jude Children’s Research Hospital, was founded in 1962. It is based in Memphis, Tennessee, and focuses on treating and researching pediatric illnesses, particularly leukemia and other cancers.

#7. The New York Public Library 

Donations to the New York Public Library are tax-deductible because it is a 501(c)(3) nonprofit in the US. Every dollar donated will be used to keep the New York community’s access to the museum’s enormous collections, educational activities, and outreach initiatives free of charge. 

What Is the Purpose of a Nonprofit Organization?

As opposed to clubs, cooperatives, etc. that are formed for the benefit of their members, the majority of nonprofit organizations are created to benefit the general public.

How Do Nonprofit Owners Make a Living?

The management of the nonprofits that they formed pays the founders. They frequently put in enormous hours and earn far less than CEOs at for-profit companies. 

References 

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