Starting a nonprofit can actually help boost the value of not only your business but the community you call home.
While we’re not suggesting to start a ‘slush fund’ or way to hide money (if we did, we’d probably be out of a job), but rather a true investment into what you want to see change around you. Whether it’s something within your industry or neighborhood, having a cause you want to go after can be wildly beneficial to not only yourself but those around you as well. That’s why we’ve put together a few notes on what forming a nonprofit could do for your business.
Create An Outlet For Giving Back
The most prominent reason people start nonprofit organizations is to give back to a cause they care about. Quite simply, they see a hole or need in society, then come up with a mission-led group to spearhead it. From big systemic issues to small-scale ways of helping a neighborhood, nonprofits provide an outlet for your business to both express its values, as well as contribute towards a mission they care about. With this foundation, it makes expansion and growth into building a better future much easier for everyone.
Provide A Tax Help That Invests In Your Community (while giving you a write-off)
Beyond the cultural ethos of nonprofits, they’re also an excellent way for your business to ‘spend with a purpose’…while also saving on taxes. In essence, the savings would go to the cause adding value to the needs of your nonprofit’s mission.
For example, let’s say that you and a few other neighborhood businesses want a rundown field changed to a park, as it’ll beautify the community while also potentially creating a green space that could increase the value of your business. By forming a nonprofit, you can suddenly spend towards investing in this green space that’ll eventually pay off, as well as give back to everyone in the community. As you can see, it’s a win-win for everyone, even boosting your reputation in the neighborhood.
Beyond the cultural ethos of nonprofits, they’re also an excellent way for your business to ‘spend with a purpose’…while also saving on taxes.
Establish A Catalyst For Good Relationships In The Community
With a common goal in mind, it’s much easier to connect with those in your community.
Not only does this help with getting to know those around you, but also what their goals and intentions are with the neighborhood as well. People often look at business owners as leaders in how commerce flows in their communities, which includes an altruistic, holistic level too. Forget making the world a better place…how can you make your neighborhood better while also connecting and bridging gaps to create a more well-rounded and collective group of citizens?
Foster A Hub For Networking
Akin to establishing community relationships in general, becoming a hub to foster professional relationships can be a smart goal for nonprofits as well. Especially if it’s a way to align your values with similar types of business, this could eventually be a great place to change your industry in general. For example, chefs that are into sustainability could bring together farmers and other chefs into a single nonprofit, thus creating a strong network that also doubles as a connection point for the supply chain. This type of thinking can help the nonprofit serve individuals and businesses, providing a symbiotic solution for all.
If starting a nonprofit organization is something of interest to you, reach out to your CPA or tax advisor today. Not only can they be a helpful resource in navigating which type of paperwork and requests need to be made to qualify as a nonprofit, but they also can ensure you’re not in a risky position of jeopardizing your business. As a great way to help the community, don’t hesitate to reach out at the email below if you don’t have a CPA or tax advisor who can assist you.
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