Non profit organizations are the firms that work for the welfare of the public and the society and have no profit motive. They are generally meant for benefitting the society and the public, these organizations work on social causes, and supporting and encouraging the group with shared point of view.
- Passion for serving the society and doing something great and big for the society seems really nice but in reality it requires a lot of efforts into it. Generating the income or raising the funds is the most problematic task for the new non-profit organization and then maintaining it for the longer time is all the more difficult.
- One need to have alternatives through which they can keep the organization working with less efforts and cost. Hence during that time one can utilize their efforts in serving the public and the society. The more the organization concentrates in achieving their missions the more confidence and assurance they will gain of the public.
- One should know the location well and should know what all resources are available around that location.
- File tax exemption against the organization. When the government has shown some liberty for the non profit organization one can make the best use out of it. According to section 501(c)(3) the non profit or the charitable organizations are exempted from paying tax.
- Tax exemption here only means that the organization will be exempted from the federal taxation system, but will not be exempted from other taxes which are sales tax, service tax, state or local tax etc.
- Then the organization should also apply for a non profit tax id. These are just like the EIN (Employee Identification Number) that all the business organizations should have irrespective of the fact whether they are taxation exempted or not.
Forming a non profit organization is not an easy task here one not only needs thought but the whole working plan of it.