The benefits of setting up official non-profit status:
- Exclusion from certain tax requirements.
- Donors are able to write-off donations.
- Ability to apply for federal grants.
Many organizations claiming to be non-profit organizations are not officially registered with their government. In order to legally claim applicable benefits, an organization must register its nonprofit status. This can be a long (and sometimes confusing) process, but it is generally not a difficult process. Some lawyers may also help you obtain 501c(3) status on a pro bono basis.
Be aware of organizations on the state and maybe even county or municipal levels which act as a resource to protect donors and non-profits. Registering with these organizations adds another layer of compliance and further signals a legitimate non-profit.
Use the location-specific resources to register your organization:
B-Corporations are the newest form of company structure. Unlike the for-profit and non-profit models, B-Corps focus on social good, so a financial bottom line does not come first, usually. Many of the companies we've come to known are actually B-Corporations and make strong enough profits while providing social good for the community.