The Truth About Nonprofits
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- Опубликовано: 7 ноя 2020
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"Non-profit" does not mean people aren't making money
True, but the sad truth is when you are promoting yourself to donors and the average person that doesn’t understand basics in business or taxes than perception matters more than reality.
Just look at how much a nonprofit spends on administrative and fundraising.
but with the nonprofit with the tax help = you have to bring in less income and worry less about that
It's crazy how so many people think it does
@@abark I try explaining that to my wife. She gives to many organizations that essentially do the same things. All she's doing is giving more fundraisers and administrators a salary and diluting the effectiveness of our contributions. Best concentrating our contributions on the most effectively run charities in each field or cause.
Everybody has to make more than they spend unless they’re the government.
This has got to be the post of the decade. Truth be known.
I see your comments everywhere all the time and I keep liking them all. Facts, facts and facts.
Who runs the government? That's US. It's the other way around. Most Americans spend more than they earn that is reflected in your government. It happens because of BOTH parties. Republicans that believe their fiscally responsible is a joke. When we the people change, the government will change. I am sick of the ignorant government comments. We ARE the government. Youre bitching about yourself.
Amen brother. That's alright, they just take more and more of the American People's money to float their socialist goals.
Finally took a look at your channel. Good stuff
The truth is non profits are for profits, is just a name to avoid taxes
Exactly
With "non profits" you have more profits:)
A legit non profit is not for profit. My sister has worked in that field for 15 years and from what I know they budget every dollar for their research, employees salarys, marketing, education etc.
@@shutupandeatasmr4498 Fair enough, not every single non profit is for profit, but most of them are and politicians are more famous for using non profits to gain wealth.
@@shutupandeatasmr4498 only the executive level folks pocket the real cash , everyone else is sold a bill of goods .
She said she wants to collect money from donors. If she establishes as something other than a non-profit, then the donors can't get tax write-offs. That Dave misses out on this key point is pretty astounding, as somebody who claims to be such a prolific donor.
Exactly what I was thinking as I watched this. Wish the caller could have stopped them and mentioned this very important aspect of the working functions of ministry...
Does it have to be non profit for the tax write off?
It's not a MISS - it's just not among the top priority considerations for the person embarking on the initiative.
Even if a founder desires to provide people tax break opportunities, the organization and what it's offering need to be useful and valuable first, right? In order for people to even want to interact with it, correct?
No one builds something without being clear on what its purpose is in the first place - and based on the callers question, seems to me this conversation needed to focus on that foundation first. 🤷♀️
@@bobbydigital5236 no. If they are a business and they pay her business for a service, they can write it off.
Not every non-profit allows for contributions to be deductible by the donor. That applies to only a small fraction of the non-profits out there. Dave was likely focusing on the more common arrangement and not the outliers.
Saying "non-profit" just sounds oh so trendy and righteous. I used to work for a "non-profit". They happened to be the largest medical system and the largest employer in the state. The CEO was great at cutting cost, cutting salary and delivering "value based" medical care. He was raking in millions and they were even granted the PPP loan during the pandemic. You can still be a mega corporation and be a "non-profit". It has everything to do with tax designation and nothing about making money bc oh do they make money.
💯 I worked for some toxic, corporate-style nonprofits myself and learned about the truth as a result! Completely agree!
The healthcare system in America is run by a large collection of crooks
True.
Add in non profit schools that pay administrators and contractors huge sums of money while charging students an arm and a leg
@@thinkoutsidethebox8456what are the truths
If your business makes enough money to pay your salary, then you can dedicate more time to it and bless more people ❤️❤️❤️
@Luís Andrade I agree with her besides the obvious ethical error.
Right, So to the caller, do what your heart tells you. Go ahead, with your nonprofit.
Not with 501c3 it’s a scam
Money isn’t evil but the LOVE of money is the root of all evil
Indeed. Money is just a tool, nothing more. It’s not good it’s not bad it’s just a tool, like a hammer. Sadly many people turn it into their god, that’s where they go astray.
I don't know about that. I really love money. I think that it becomes a problem when the only thing you care about is money.
Really, all evil? ALL evil? Interesting, I never knew.
I say being broke is the root of all evil. Broke people will do some extreme things for money.
Money is a tool to weather the hardships of life.
-Arthur Schopenhauer
Caller says “Profit scares me”?? Never heard of someone scared of making money
I hear it from 90% of the people i speak to
@WeWhoAre AboutTODie absolutely false
@WeWhoAre AboutTODie Depends on the labor cost and time to position the $5 orange in front of the customer and explaining the value of buying it from me vs buying it yourself. Convenience charge, LOL
@WeWhoAre AboutTODie I personally don't think so. Everyone values things differently. Matching up the price with how people value things is not a bad thing.
A charity bazaar for example, the price of everything is extremely inflated, but people pay more because they value the cause.
Matching up what people value with pricing is a beautiful thing that isn't anything to be ashamed of.
To take your example, though, it would be conning someone if you purposefully found oranges that looked great in the outside but were rotten on the inside and sold them for a normal price.
It's definitely a personal thing and it's difficult for many to sell things. I think it's because we forget how much value you are providing, even as a middle-man.
For example, a child selling a cup of lemonade for $2 is super steep since they just mixed the lemonade powder and water and maybe added ice, but we buy it because they went through the trouble of mixing it and making it accessible.
Anyway, sorry for making such a long reply. Hope your day goes well.
@WeWhoAre AboutTODie - - I live in a town of about 1400 people. The nearest shopping center is 25 miles away. If I run out of eggs, milk, etc., and I don’t want to drive to town, I run to the convenience store here. I realize I will pay more for these things but it would actually cost me more in time and fuel to drive to a regular store for one or two items. Because I expect to pay more, I don’t feel conned. In fact, I want to support them because they are part of our community and I want them to stay in business.
One of the biggest reasons I want to start a non-profit is because I don't want to sell b.s. to customers, competing for their discretionary income, by kissing their behinds. I'd rather serve the needy by getting financial help from the well-to-do. I wouldn't do it to be more saintly than a for-profit.
And nobody is stopping you! It’s very, very selfless and kind of you. The only issue is selflessness. It’s a sacrifice. You have to give up a lot of what you could own and earn for others. If you’re comfortable enough to sacrifice yourself for others, then I would say go ahead
Same
My exact reasoning Richard
As a nonprofit most clients are entitled and not grateful. You work harder in my opinion. Been in nonprofit for 8 yrs
Nonprofit classification is most helpful for donations if you are soliciting donations that people or organizations want to write off (which is do) and you have a ministry..... Nonprofit is a great way to go
I worked and volunteered for nonprofits. Saw some serious scams off "helping" poor people. And these CEOs hire friends and family of friends easy jobs nice salaries. Stupid abuse of expense accounts. Way worse things. I never expected any of those things working for nonprofit companies/charities.
Any nonprofits you can name that you had a bad experience with?
@@joseortegaa2349 hi my experiences are charities local to Delaware. Dave probably has videos on choosing ethical charities. I know you can google for sites that rate charities too.
@Electromushi top heavy management.
I agree! Most are toxic narcissist.
How do you file a fraud suit against a non profit? I can’t determine who they even answer to
The NFL was a nonprofit up until 2015. There can be a lot of money made working for and running a non-profit. Running it ethically, or morally, makes it more difficult.
Hmmmmm
The NFL still Has private member association holdings l o l point noted
Hey guys, thank you for your honesty.
Nonprofit is not nonprofit. It's non-tax.
The name is so misleading
Oh this is one interesting call of the year right here....
Well actually, since you can't take the income out, it's non-income dispersion.
And nonprofit do not have shareholders
Um, no. Nonprofit means *gasp* they don't make a profit. They bring in enough money to cover their expenses, employees, taxes, fees, etc. but the owners/shareholders don't make a profit. WOWZERS. Also it's much harder to run a nonprofit over a regular company because the government is in every aspect of what you do, wasting the money that was given to help people and going to government regulations.
I work in a long term care facility that is non profit. It is extremely short staffed in all areas of actually taking care of the patient. And they do not care.
Families see & feel the short staff but don’t question because it’s a non profit.
Unbelievable.
It’s seriously a shame the workload, and so obvious they do not care about the patient.
So many chiefs to complain about you, so very, very, few Indians to do the work.
It’s heartbreaking, back breaking, and risky professionally.
Non-profit means that profits have to go back into the charity or organization. You don't distribute to the shareholders.
Non Profits can generate a profit, but then that profit is taxed.
I MIGHT argue that if a NON-PROFIT is INVESTING in shares that the SHARES when multiplied GO BACK to the NON-PROFIT for proper use for what the non-profit exist for. If anything, it was wise to multiply.
It’s insane that Dave didn’t say this.
Non profits are good to dump your money in the company so it can't be taxed.
@@conlawmeateater8792 True!
It's a great discussion...buy Dave is Not very helpful 🙄 😕 like always. My friend works for a Christian non profit and she helps so much! Not just giving food but resources to people who otherwise are forgotten. Also...they need to claim a non profit status to receive grands and donations. When I donate I get a tax break...as well.
This is nonsense. Theoretically, if enough people were to have non-for-profit organizations then technically taxation would be unnecessary. Imagine that I started series of businesses that create a healthy level of revenue, But instead of collecting the revenue, I've redistributed it to the education systems in our area and the roads. If that's the case, then overall the state requires less money to keep up with its road infrastructure and education systems. And if I end up donating better than the state, then now we have improvements in our roads and improvements in our overall education system. Profit businesses are there for the profit and it's very difficult to actually focus on the product when you are a for-profit business because of the amount of taxation that comes along with it. But if you're not required to pay that same level of taxation per product that by definition you would be left with excess income that you could still spend but more directly within your community.
Thanks for the info! I read your book earlier this year. I appreciate your take on topics people rarely ever talk about.
This sets it straight - just a tax code for nonprofit status (avoid taxes). Many charities exploit their paid or volunteer staff and the community they serve. I have seen many for profit businesses that serve the community way better than the nonprofits - sales, deals, professional customer service, and act more Christian than charities. The pandemic has made me really respect the local small and medium sized businesses that are struggling.
She keeps saying “right” but has no idea what a non-profit is..
Right!
She's completely clueless.
but with the nonprofit with the tax help = you have to bring in less income and worry less about that
What may be getting overlooked in this discussion is who owns the future value of the organization. It's my understanding that many people who start nonprofits do so because they want the community to own, and completely benefit from, the organization rather than an individual. Since they're getting their personal financial needs met by the nonprofit salary they receive, they choose to give the "ownership" of their value creating enterprise to the community rather than keep it for themselves. As we know, it's the sellable value of a for profit business that holds the majority of the wealth for many successful entrepreneurs, not the salary they pay themselves. I don't know for sure what the lady on the phone's motivation is, but she may be considering this aspect when choosing to prefer a nonprofit structure.
So basic and also so eye opening as well. Dave, you always cause me to look at all sides of a financial subject and I cannot thank you enough.
Love it!!! Thanks for your help with information I was looking for and I never heard of you or your show … god thing ❤
Non-Profit is just a business that does not pay taxes.. As a 25 year expert in the Commercial Insurance (for non-profit arena) there are so many things that are just like a regular business.
I’m wearing Bombas socks right now, too! They are great socks, especially the merino wool ones. ❤️
Thanks for covering this topic, Dave! I was just discussing this with my lawyer friend. I do believe you can accomplish a lot of good with both the for-profit and the not-for-profit model. I’m realizing that both can be mutually beneficial if you’re trying to do some good in the world.
I totally agree
Ugh...the ceos are wealthy and do nothing for the world. Wake up.
This is so helpful, thank you!
This lady's idea of non-profit sounds like she is trying to create a job for herself via donations.
Many "nonprofits" spend well over 90% of the money on salaries, etc.
MN has a law, they can't spend more than ~32% in those type of expenses. 32% is too high but you can look it up and choose to not donate to anything more than say 13% or what ever percent feels right to you.
Exactly!!!
This is a non-profit organization -- that's not the way we planned it, but that's surely the way it turned out.
@@KS-cl8br That may be true for MN, but I just pulled this from the internet. "Many nonprofits have 50-75% of total expenses as salaries because most of their services are provided by staff and not vendors.Jun 13, 2017"
@@rajbeekie7124 Wow. I guess each state must have a wide variety of rules for claiming non profit status. Thanks for the information.
These days, “Non-Profit” is just a trendy virtue signal label for companies to profit on.
Thanks Dave, bc I met so many people who were so proud to work for a non for profit organization as if its holier than a for-profit organization. Non-profit is just a classification of how a firm is coded by the IRS.
Thank you soo much for sharing.
Nope. Wrong, Dave.
You gonna tell the Girl Scouts not to sell cookies?? I’ll bet you’ve had a few yourself lol.
Nonprofits are BUSINESSES and everyone gets paid like normal, from the janitor to the CEO, based on the private sector (this is the IRS not me speaking) but at the end if there is excess (profit) you must put it to your PURPOSE and not to shareholders and bonuses for executives.
Broke people saying "profit scares me".
What leftism and pop culture has done to us.
@@billgateskilledmyuncle23 you think a leftist is calling Dave Ramsey about opening a ministry? Is leftism and pop culture the reason your IQ is low?
If you feel icky about running the business "for profit" just donate a portion of your profits to charity. Like Dave says, that won't make you holy or righteous.
There used to be a thing in America called volunteering. You weren't out to maximize your return on every minute of your life instead you just did good because you cared about the service being provided. Maybe that service helped you at one point and now you wanna give back. That's what a non profit should be. If you want to create a source of revenue that's fine create a normal business, just know that there are labor laws on both profit and non profit.
Their was also a time when Adam and eve were naked.
They exampled this with elegant simplicity... the first thing i thought when i saw the title & thumbnail is even nonprofits have to make a profit
This just gave me so much clarity in my business plans 🤦🏿♂️😁
Why would anybody want the government as a business partner?
MN has a law, they can't spend more than ~32% in those type of expenses. 32% is too high but you can look it up and choose to not donate to anything more than say 13% or what ever percent feels right to you.
Love this! Thanks!
Thank you so much!
The purpose and traditional definition of a non-profit is that you are taking whatever Surplus you have Beyond business expenses and salaries and supporting a cause.
No not every nonprofit organization is a scam. Just like there are bad for profit orgs there are bad non profit orgs.
Both types of business need money and make money.
But the nonprofit should be using the majority of their Surplus to further a Cause.
The IRS still reviews nonprofits to make sure that they are running their business in accordance with the regulations that Define a non-profit.
The controversy comes when you have a nonprofit CEO raking in millions upon millions calling that apportioned salary and leaving very little "surplus"
As someone who has a non profit the reality is if you are doing anything of value you don't take a salary. You need to declare what you will make but you need to be aware that you will forgo pay for years as you build a community.
Sounds like the ultimate expensive (but hopefully worthwhile) hobby.
Just had a call from fundraising at CARE nonprofit. I asked what they have actually done in Ukraine for which I have donated. The woman said she has no idea but kept live bombing me for “giving”. I asked what specifically they have done since I saw no evidence of their work and she just kept repeating vague statements like “we do work all over” and gave me a toll number to call.
Great show
Yeah, pretty sad advice. 501c3 status is designed to allow the organization to solicite donations and an incentive to that is the tax right off for the donor. Dave was kinda a discouraging voice in all this. A non~profit "is more trouble than its worth" only if you dont actually do what you set out to do. If your concept is good and people will support it, then do it!
This is a good chance to look at how some people behave.
Someone who believes they have a good grasp of what "non profit" means without actually understanding what it means. Felt confident enough to call into a live show that will be recorded, while being absolutely incorrect with their interpretation.
Use the internet as a tool, as it should be. Google things that you think you know, just to solidify your knowledge, don't just presume you know something, verify it!
I really enjoyed this Thankyou
Great explanation! Having profit in the organization doesn't make it all greedy capitalist exploitation. It is all about distributing the profits fairly and with the mission in mind. You don't have to be a non-profit to be a mission-driven organization.
"Not for profit is an IRS distinction not a mission declaration".
"Walk in your neighbors moccasins." NIce flex :) I myself was in this same phisophical crossroads until I found this chanell. Thanks for the wisdom.
Creating a non profit ensures that your company will never be corrupted into a for profit, destroying everything you built it to represent.
It also sends a clear message that you are there to help people, not exploit them.
Hahahaha! Good one! Simply Google ANY large non-profit followed by the word “scandal” and prepare to be educated. United Way, Red Cross, etc.
@@truthsayer9534 I should say helps ensure, unfortunately this is capitalism where anything will be corrupted for the sake of profits.
my first thought was....... non profit, when do i get a salary? all i heard was when do i start making money off my NON profit............ lol. like she creating her own job. doesnt want to pay taxes.
Non-profits still have to pay payroll tax and employees taking salaries will still need to pay federal income tax just like any other person. Also, just because she starts a non-profit doesn’t mean her bills go away - she’ll still have to pay her mortgage and feed her kids.
@@jxl180 this is like being a homeless begging for money. Most people who do non profit are already wealthy she broke looking to take advantage
@@lexielove2268 Then everything is a non-profit, just increase your salary lol.
non-profits take time and hard work. If your non-profit isn't covering your expenses you have to get another job. If you get another job, that is less time for your mission.
Thank you, this of great food for thought.
Great contain honestly the cast of The Dave Ramsey Show. And i do like your formulation of money: " Certificates of apreciation with president face on them, and they are green." Gié-Mei | Mon Propre Homme.
Thiers a reason why hospitals, university's are non profit....it's to save and avoid taxes and allowed to qualify for grants and other things.... Non profit is a money strategy
Well, it all the depends on your business plan. If you are going to live off donations, Nonprofit would be a better setup simply for the fact that your donors might misinterpret your intentions. Unless you have time to explain all your intentions to your donors, telling them it's profitable organization they might not donate. Plus other benefits that a nonprofit has such as sales taxes exemptions when buying for the organization. While a profit organization is easier to run and operate, the nonprofit can be a pain.
Very helpful
Tax exempt nonprofits govt service providers have put many small business providers out of business! Many nonprofits have become a big million $$ money maker and a $ funneling service. Nonprofit service providers make millions on donations, taxpayer grant funding, and fees for servicing the clients charged to the govt partnered agency. And... Are the fees paid to the nonprofit by the govt agency also funded from the same earmarked grant funds in which the nonprofit has already received this grant funding? A money making business that has slipped thru the system. Nonprofit does not mean nonprofitable. They have become lucrative businesses.
From my experience with non profits salary and lawyer fees are the first box they tick.
Nonprofits are driven by grant funding (which takes a lot of work btw - my mom is a development director/grant writer). Business is driven by market.
I agree. Grants are a lot of work to get
“Better than I deserve.” 😂😂
Ty
What may be getting overlooked in this discussion is who owns the future value of the organization. Many people who start nonprofits do so because they want the community to own, and wholly benefit from, the organization rather than an individual. Since they're getting their personal financial needs met by the nonprofit salary they receive, they choose to give the "ownership" of their value creating enterprise to the community rather than keep it for themselves. As we know, it's the sellable value of a for profit business that holds the majority of the wealth for many successful entrepreneurs, not the salary they pay themselves. I don't know for sure what the lady on the phone's motivation is, but she may be considering this aspect when choosing to prefer a nonprofit structure.
501c3 organizations are public charities and are not owned by the Founder. Many people are starting not for profit entities thinking they can run them like a for profit private owned business. She would not determine her salary, the board will...if she is allowed to have a paid position. She can be the founder and be voted out because it does not belong to her
I freaking LOVE the Star Trek franchise (not the new stuff). But it completely ticks me off that they used the word "profit" as an evil word. My dad ( a classic Trek fan) tried to explain it to me when I was younger and really into Deep Space Nine, and I finally got it later when I had to do my own taxes, and paid more attention to how much I had paid vs what my tax return check was.
ramsey donates to himself. beautiful
The biggest turn off with most non-profits is the number of people working for those non-profits who are collecting six and seven digit salaries.
My big gripe are the professional fund raisers who take even more money to keep pestering to give to their organization or give even more to their organization. I look at it as very high pressure sales campaigns.
Everyone is saying how the non profit owners get a boat ton of money but my dad runs an expanding nonprofit and it seems like he don’t really get paid enough for the amount of work that’s put in.
I have worked for nonprofits many yrs. Most of them pay notoriously low to the front line workers. Only the top leadership folks get handsomely paid but the guys working hard risking their life with difficult people every day, barely get by. When I was working full time, was not able to afford. I was serving the homeless but we had to go to free food distribution centers at various churches to survive. Then, I had to start driving UBER during the night while working full time for one of the richest nonprofits in Los Angeles. It's not about me but if you can't treat your employees right, I don't think the people you brag about serving will be served well. Nonprofits first mission should be to their employees. Treat them well first. Let them be proud of working for you. When a director makes 100k or more whereas his employees working their butt off risking their life daily have to survive at the minimum pay! Or if the organization is able to pay 100k or more to the director why can't their pay higher to their strugging employees.
I want to start a non-profit, but I want to make a profit from it!
Star a non-profit and con people to give money
Good talk Dave.👍👍
Non-profits are allowed to pay employees and contractors because a business’ profit ≠ wages/compensation.
DONT do stupid! Talk with a tax advisor before creating a non-profit/foundation. They are very complex and one error could cause you many problems. Not to mention it is expensive to pay someone to prepare the return for you.
To me, I think non profits are run better when the founders are not the ones taking a salary. That usually means the founder is someone with money that starts a charity near and dear to them and pays people to help them run that organization. I think that is easier for the donors to stomach than the founder being the one who also pulls the salary.
good points. I think it can be ok for the founder to take a salary, as long as they're not also sitting on the board making decisions about the top level compensation at the nonprofit...
Either you are a customer, a government obligation, or a charity case. That's the unfortunate reality of all social services.
And no matter what you're still a person :)
Non-profit is just another version of a business. I hate it when they trick people with that moniker.
She hasn't applied for grants or anything.... she is not running a non profit she is volunteering.
just lerned something today always thought people that worked at nonprofit weren't payed just volunteers
Dave Ramsey I promise you besides God and my husband you are one of the other "smartest men" on this Earth thank you for all your wisdom and your insight I'm truly blessed by it🤗💯♥️
People are moving their business of service to tax exempt govt nonprofit providers because the businesses is much more financially lucrative.
I have a crippled friend In need of help.. He is the most incredible charitable person I've ever known in almost 30yrs. His name is Billy Eubanks. Him and his mother live in Oak Grove Louisiana..They have never turned anyone away in need of shelter especially not people with children...They have all used him and now his mom is in Delhi in a shelter cuz she's 90+ ok ? He's crippled living all alone and his poor house is in shambles. Bugs and so dirty!!!!!😭😭I just wanted to call a make a wish or something for him...He's a good good man... I went today and cleaned and cleaned but the job is so big.. I'm tired of seeing such a beautiful soul live like this..He opened his door to anyone needing shelter. He never EVER talks bad about anyone ..He's Awesome.. I wouldn't let my dog live the way he is?!😭😭😭It hurts to watch him everyday struggle in that house. I don't have the money to help him . He's an amazing guy.. please help😢❤
Love It
Many Service providers used to be small taxpaying businesses that transitioned to a tax exempt nonprofit so they could be taxpayer grant funded. This is scary because if you sit back and see how many nonprofits this country has and how much of your tax dollars are funding them and big grants being sent to big corporate agencies, if the govt stopped giving away this money tomorrow..... What financial shape would we all be in? Most of this country now seems to be funded directly or indirectly or back end invoicing with your tax dollars it seems.. Nonprofits would close shop because many are totally dependent on our taxpayer dollars. Doesnt even Elon Musk receive govt funding? Hasn't the airlines received govt funding? Have our utility companies received govt funding... ? Have our appliance mfrs received funding for green energy...research the dept of energy website for all the green energy (from microwaves to ceiling fans ...from A/Cs to washers, etc) ? Have our auto dealers received govt funding? What about pharma that used to be responsible for doing their own years of research to mfr a reliable product back then.... What has happened with pharma...are they now being funded by our tax dollars to financially support research so they can sell us an unaffordable med, charge Medicare and Medicaid astronomical $, and they make billions in profits and now we have more class action lawsuits in ads more than ever plus we cant even keep up with fda recalls anymore it is so many! Folks it's just about everything the consumer touches now it seems. The govt should not give any monies to any business, private or not! Is this why we have such high taxes, inflation, etc? If any private or nonprofit is receiving direct or indirect govt funding, then those entities should never donate to any political campaigns or give anything of value to any elected official! Period! Stop this financial burden on Americans!
Probably when the interior decorator does a full-on shower makeover
Not for profit companies are basically companies that reinvest profits back into the company and don’t distribute them to owners or shareholders. Salaries etc are the same as profit companies. Charities pay salaries but the bottom line profits go to the cause
Exactly
If you are running an animal rescue, money goes back into being able to save more animals. Of course employees have to be paid for their time unless they are financially independent from other means and are able to volunteer their time. If you are trying to raise money for a good cause, being a non profit makes sense because people can write off their contribution and feel good about helping the cause. Not really sure why all this is hard to understand. Makes perfect sense to me.
What's the name of the socks again ? Great video BTW!
Dave! Love the content
I helped start a nonprofit but things happened, it never really took off. never received donation. then all board members moved out of country. only I am left. tax was filed with irs but failed to file any tax with franchise board and am taken a back as I recently got a notice that they are going to suspend it soon. What happens when it gets suspended? And what happens if it is administratively closed? As a missionary, I was travelling and staying out of country most of the time and, since I have no donor at all, there's no income. Should I leave it to be administratively closed or is there another way? please advise.
Under IRS rules, a non-profit can't pay "excessive compensation." The max they can get paid is 10% of the non-profit revenues.
I have a nonprofit AND a social enterprise that both work toward the same social impact mission. Each has its own value toward funding the mission, and having both gives us flexibility in our social impact goals. One thing that social enterprise allows is the ability to scale. Nonprofit allows donations from foundations that the social enterprise is not eligible for. You can start a social enterprise with little paperwork and you maintain ownership. Nonprofits are a headache to get set up and you don’t necessarily have control since technically no one can “own” a nonprofit. If I had to choose only one I’d go with social enterprise. P.S. I am one of those so-called socialist university professors, and I get tired of being stereotyped as a propagandist. I work within capitalism but also critique its limitations. All or nothing thinking is reductive and causes divisions.
hmm a socialist that practices capitalism.. imagine that.
@@tommycage5457 That's called the Chinese
@@tommycage5457 this is where education could benefit you. Democratic socialism, the way of Canada, most of Western Europe, and even the US (any public service we have is actually “socialism”) is all capitalist! Democratic socialism = Capitalist economy + basic human rights met by the government. Trust me, all of these countries are deeply capitalist on a global scale. Read/study more and you will have a more accurate sense of how things work.
I am currently having this dilemma as well. I really want to help under-privileged youth. however, I need Board of Directors Etc..just quite a bit of hoops. and at sometime I would need to quit my high paying salary job to do this full-time, if I want to make an effective change in the community.
The food's horrible and there's a deadline and some people take it literally. The physiologically they take away from
NON-PROFIT IS...P-R-O-F-I-T!!!! PERIOD.
They say it's non profit for you , I never heard one of them saying that it is non profit for them.
Money is just a tool and is not inherently good or bad it's what you use it for and what you have done to obtain it that is where you move into the morality factor.
I like the term "not-for-profit" better as a descriptor. Or maybe not for personal gain. You still have to make a profit; you can't sink people's money and consider yourself a ministry. Just the end of the institution is not to make money (theoretically anyway).
Really insightful video. Thanks. But can you explain your reasoning for having a not for profit if, apart from tax benefits, there's no difference. Why do you have one and not just make it a charitable for-profit. Thanks again. Loved the vid
My question exactly, because I want to give , I can’t afford to be broke.
I have a nonprofit and I like what I do.
Thanks to life church for You Version Bible app. Indeed a blessing to millions of people.
I wasn't sure anyone knew what criminals charities are.
Dave was right on! People want to go into business but they are afraid of profit and taxes.