To Profit or Not to Profit?
Does everyone need a nonprofit or 501C3?
My participation in the nonprofit sector has taught me several lessons that have helped me grow professionally. I am thankful for the time that I have spent with many organizations, including the Boy Scouts of America, Boys and Girls Club, AAU basketball teams, Junior Achievement, Kappa Guide Right, and many others. The human spirit of giving is pretty impactful to our daily lives and there are many behind the scenes activities keeping things going for the underprivileged and underserved across the world.
Now that I have gotten my love letter to nonprofits out of the way, I want to address the over saturation of dual services in our communities. Everyone does not need to start their own non profit. It is frustrating as a community activist to have to take sides and pick against competing services in the same communities. The increased amount of individuals starting non profits has diluted the system and the end user is suffering.
I often advise people who are thinking of starting a nonprofit to serve on a board or committee of a similar servicing organization. The experience of learning operations, finance and politics will aid you in your planning. The magic of serving for an existing organization is that many will have funding for consultants and new staff. If you are truly passionate about the service, you may also find a second job or a new client.
What’s the Mathematics?
It’s beneficial to many companies to support or establish foundations or nonprofits. A successful organization can have tax benefits by gifting funds to there non profit. Many organizations believe they are better at giving back to the community than the government. Rather than paying Uncle Sam a higher tax bill, those funds are shifted to the non profit of their choice. This is also a part of Reaganomics/Trickle Down Economics. Click the link to learn more https://academic.oup.com/economicpolicy/article-abstract/2/5/15/2392308
Do you think Reaganomics works? What are you doing to support nonprofits in your community? Are you part of the problem or the solution?
Comments and dialogue are appreciated.