Author: Neal Waugh Nonprofit organizations (NPOs) have the potential to have a powerful impact in creating employment, wealth creation and narrowing the income gap. However, historically NPOs have been perceived from a narrow perspective as a docile organization devoid of creativity and innovativeness, lacking in business appropriateness. Notwithstanding, KO and Liu (2021), state that emerging from a complex environment, NPOs are now becoming more entrepreneurial, market-oriented organizations, described as social enterprises focused on creating social value ( KO & Liu, 2021).
It is not difficult to start a nonprofit organization, and a 501© 3 organization may be the preferred nonprofit category to begin.
What is a 501© 3 organization?
According to the IRS, a 501©3 is a category for nonprofit organizations under the Internal Revenue Code. Under this category, organizations that meet the requirements of this code are exempt from federal income tax. There are thirty types of nonprofit organizations; however, only those that qualify for 501(c03 status can state that deductions to their organization are tax deductible.
How can nonprofits be used?
There are many ways a nonprofit can be used; it can be used in a particular sense to benefit a family and, in a broader perspective, to benefit the community. I will cover a few topics in this blog and others in subsequent blogs.
Health benefits
Dobkin et al. (2018), researchers from the Massachusetts Institute of Technology (MIT), discovered a correlation between hospitalization and an increase in medical care, increased medical debt, and decreased employment and income. Medical expenses can impact individuals and families adversely. Families can establish NPOs to mitigate such eventualities and assist the broader community from that platform and infrastructure.
NPO as a health resource
A nonprofit organization can be a resource facilitator in collaboration with other nonprofit organizations on issues like medical assistance, free prescriptions, and many other attendant services. Additionally, NPOs can provide pivotal information on advanced technology available for specific medical treatments.
Grants & Funding
There are federal and private grants available for nonprofit organizations. In addition, to maximize revenues, NPOs must be structured and operate innovatively, implementing strategic partnerships with for-profit organizations in cause marketing ventures. This can increase brand awareness and profitability and, in the process, satisfy social needs.
Registering a nonprofit with the relevant federal organizations will position the nonprofit to benefit from the many federal grants available.
Our organization can assist in optimizing opportunities in all facets of the nonprofit arena.
Subsequent articles will discuss all the various elements and facets of nonprofit organizations, new concepts, and technological advancement in the business.
Journal your thoughts and concepts in starting or restructuring your nonprofit organization by clicking on the link below.
About the author
Neal Waugh is a business consultant, researcher, strategic planner, educator, and project manager with over thirty years of experience. Currently, a Doctoral student in Education majoring in Leadership and Innovation, graduating in 2024 from St. Thomas University, Miami, Fl. He also has a Master of Science in Instructional Design and Technology (4.0) and a bachelor's degree in Mathematics.
References
Dobkin, C., Finkelstein, A., Kluender, R. P., & Notowidigdo, M. J. (2018). Myth and measurement—the case of medical bankruptcies.
Ko, W. W., & Liu, G. (2021). The transformation from traditional nonprofit organizations to social enterprises: An institutional entrepreneurship perspective. Journal of Business Ethics, 171(1), 15-32.
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