One of the main questions I always had about nonprofits was how they made money to pay for their employees, operations, etc. I feel like most people ask this question and I have learned quite a bit about the inside workings of nonprofits.
- There are a lot of different kinds of non profits tax wise. I had no idea going into CreateAthon how many types of nonprofits there are and how each one has different tax codes and deductions that are associated with. I learned that the most popular type is a 501c(3) which is a typical tax deductible non profit. To be honest I am still a bit fuzzy on what each tax code means, but I do know that each one dictates what benefits those who are associated with the non profit, work for the non profit, or donate to the non profit receive.
- I learned all the different ways that non profits fund raise and collect money as well as keep up operations. Its a difficult task, especially for brand new nonprofits. It is a lot of creative fundraising and strategic spending of money. I realize that many of the non profits at first are fundraising their own salaries, because the non profit, in its infancy, doesn’t make enough to supply operational and employee costs.
- The last thing I learned is just how hard it is to start and maintain a non profit. Starting a business is always hard, but it is even harder to start a business that doesn’t hold profit like a normal company. It is also hard to sell your cause, your purpose and what you are fighting for, than it is to sell a product. I have a great deal of respect for those who have successfully grown their non profit into a large company and have been able to make difference. Starting a company is like climbing a mountain, but starting, maintaining, and growing a non profit seems like climbing a mountain made of glass; it is a painful and difficult process.