Government Assistance

It can be difficult getting a non-profit organization started. However, the government has a few means to assist businesses with this. A non-profit organization has the ability to benefit itself through applying for incorporation, tax-exempt status, and tax deductible status.

In order to protect a non-profit organization, becoming incorporated is recommended if applicable. Being incorporated simply means that the organization is identified as being a separate unity from a personal owner. However, in order to file for articles of incorporation status with the state office, a board of directors is required. Once incorporated, a non-profit organization can benefit with the following:

• Allows the owners of the organization to avoid liability of the actions taken by the organization.
• The property and bank account of the organization will be legally owned by the organization.
• Ensures peace of mind in knowing the organization can continue even without the original creators.

Filing for incorporation can be a huge benefit with the protection it gives.

Even if an organization can not file for incorporation, there is the possibility of applying for tax-exempt status, which is usually federal taxes(however, there are others). Tax-exempt simply means the business does not pay taxes. There are different filing statuses of tax-exempt, however 501(c)(3) is the most common, which means it is a "charitable non-profit". In order to apply for tax-exempt status, the organization is required to be either a community chest, corporation, foundation, or fund. Being able to qualify for tax-exempt status is just one of the small things that can be a huge help in cutting costs for a non-profit organization.

Another form of government assistance comes in the form of qualifying for tax-deductible status. This basically allows donations to be deducted from taxes due. Like tax-exempt statuses, there are different types of tax-deductible statuses as well. The type the IRS will qualify an organization as depends on how the organization is ran and the types of services it provides. It is yet another small step that can be a huge saver for a non-profit organization.

When starting a non-profit organization, it is important to find out what government qualifications it meets. The protective benefits of incorporation and the cost cutters of tax-exempt and tax-deductible status are just a few of the many ways a non- profit can help itself obtain its goals. For more information on starting a non-profit organization, the following site is very helpful: http://www.managementhelp.org/strt_org/strt_np/strt_np.htm.

How does a non-profit organization earn income to maintain its facility?

Saving and maintaining animal species can be done in a number of ways. There are endless organizations set-up for the dedication of wildlife. One of the ways to help protect wildlife is through an animal rescue center or sanctuary. They are usually non-profit organizations. A non-profit organization is different from a normal business because it must find alternative methods of income in order to maintain its functionality.

Depending on the organization, there are different ways it may choose to obtain income. Most of the time they receive generous donations from people who care about the mission of the organization. For instance the Environmental Defense Fund reported on its 2006 annual report that its total operating support and revenue reached $71.8 million. However, 54% of that was all from individual donors. Aside from outside contributors, members of the organization may support its funds, too. With the Environmental Defense as an example, their members contributed 14% of the $71.8 million. This organization also has 500,000 members, which would roughly come to $20 per member.
Here is a link to their annual report: http://www.environmentaldefense.org/documents/5752_2006AnnualReport.pdf. If it is set up like a union, members may just be required to pay monthly fees in order to be a part of it. If it is a wildlife rescue center, more creative ways of earning income may be used. For instance, if it is a visitor site, visiting fees may be charged, which can help pay for the maintenance of animals. Still other sources may be used as well. The Fort Wayne, Indiana children's zoo allows visitors to "adopt" animals, which gives the visitors several benefits and the zoo an opportunity to obtain more income(http://www.kidszoo.org/). Still another common form of aid, would be through the government. However, being a single organization you can not expect to receive a majority of the funds to come from the government. For the Environmental Defense, they received only 1% from the government. For more information on government aid... stay tuned....