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What Is a Nonprofit Organization?

A nonprofit corporation is an organization that has a purpose far beyond making a profit. Here's everything you need to know about starting one and making a difference in the world.

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Common Questions About Nonprofits


How Do You Start a Nonprofit With No Money?

You will need to spend money to start a nonprofit, but it is possible to get up and running without opening your own wallet if you absolutely have to. There are federal, state, local, corporate, and foundation grants that you can apply for to get help with your startup costs. You could also raise money from those in your community who believe in your mission to get started.


Can the Founder of a Nonprofit Receive a Salary?

Yes, founders can receive a salary that qualifies as “reasonable compensation.” The IRS defines reasonable compensation as “the amount that would ordinarily be paid for like services by like organizations in like circumstances.” Look at similar titles and salaries for like organizations in your area to get a starting point for your founder’s salary.


Can You Own a Nonprofit and Make Money?

Nonprofit owners are typically called “founders.” While they can make a salary, any profit that the organization makes must go back into the nonprofit and/or its causes.


Can I Run a Nonprofit From My Home?

You can absolutely start a nonprofit from your home. The process for incorporation is the same as if you were working out of an office."


How Do I Create a Budget for My Nonprofit?

With all small businesses, it’s important to have a budget, but it’s especially essential for nonprofits because your financial statements are publicly available. Every nonprofit will have a different budget depending on your company size and goals. Learn more about creating a budget for your unique nonprofit.

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