3 Ways To Start A Nonprofit WITH Your For-Profit Business
The idea of building a business with social impact is starting to gain momentum.
But it hasn’t hit the mainstream yet.
In my mind, this is how every business should be!
So, when I get asked the question… Should I start a non-profit under my for-profit business?
My answer is always, yes!
But it’s not as straightforward as that.
In today’s video, I’m going to share with you all what starting a non-profit under a for-profit business could look like.
There are 3 different ways to go about this:
Get a fiscal sponsor
A fiscal sponsor is a non-profit organization that shares its tax exemption status to groups doing charitable activities that align with the organization’s mission. Fiscal sponsors will typically charge an administrative fee between 2-8% to cover the costs of any administrative tasks done on behalf of the charitable activity or project they agree to sponsor.
Start a separate non-profit
Starting a separate non-profit means that you would be starting another business completely separate from your first one. You would need to also get your 501(c)3 tax exempt status. My Unleash Your Purpose course is a 30 day course that will walk you through every step that you need to start this non-profit.
Become a major sponsor
If you don’t want to start another business, sponsoring another organization is a great way to add social impact to your for-profit business. By providing funds and supporting someone’s mission out there, you’re making a big difference and you can come to an agreement with how you want to be marketed or how your funds will be used.
And that’s it!
Having said all this… Which direction would you choose for your business?
Now keep in mind, each method has its pros and cons.
So, go and check out today’s video which also features the good, the bad, and the ugly concerning these 3 options.
All joking aside, there is really no bad choice here.
Sure, there are some caveats to be aware of before deciding, but today’s video should definitely help with that.
It’s all about what works best for you.
Good luck and keep me posted!
Ashlee
