The Good And Bad of Incorporating as a Nonprofit

Determining the best business structure for a company is a big decision. The possible benefits and challenges associated with a business becoming a nonprofit should be a consideration. In many cases, this could be a good idea. It's also possible there could be some disadvantages associated with choosing this type of business structure. Learning what is involved is essential.

Advantage: Taxes

When an organization is a nonprofit corporation, they will qualify for a number of tax exemptions. These exemptions will apply to corporate income taxes and a variety of other types of taxes. This can be a huge benefit if a business anticipates making a large amount of money providing a mission-related service. This tax-exempt status can also help an organization avoid paying local, county as well as state taxes.

Disadvantage: Paperwork

The amount of paperwork required to incorporate as a nonprofit can be complicated. Many organizations hire an experienced lawyer to help them prepare all the necessary documents. There are a number of laws and regulations associated with being a nonprofit corporation. Some find all the time and energy required to comply with them quite a challenge.

Advantage: Cash Management

When an organization is a nonprofit corporation, there will be no shareholders. This means no dividends will need to be paid when a nonprofit company begins to grow. This enables the nonprofit company to keep a larger percentage of the revenue it receives. These funds can then be reinvested back into the nonprofit company. This is an excellent way to maintain a positive cash flow. It is also an effective way to help those who donate to the nonprofit company. Those who donate are permitted to write off on their taxes the amount of money they donated to a nonprofit company. This is a good incentive for those who wish to help a nonprofit organization.

Disadvantage: Location

There are certain types of nonprofit organizations that are not permitted in certain areas of a city or neighborhood. This is due to local zoning requirements. When a nonprofit wants to open in a location that is not zoned for them, it will have to apply to the local government for a variance or special approval. There are situations where residents do not want the clients that a nonprofit company serves in their neighborhood.

Advantage: Grants

A nonprofit company is able to receive a number of different private and government grants. Each one may have different eligibility requirements. A grant from the federal government is a financial award. It's is given to nonprofit companies with the understanding the funds will be used to carry out some type of public support. A federal grant is not a loan and is not considered a form of federal assistance.

Disadvantage: Limited Function

A nonprofit corporation is legally only permitted to have limited purpose. They are only able to use their cash in certain ways. There are a number of laws and regulations that cover exactly how a nonprofit corporation can spend its money. A profit driven corporation is able to spend its funds as it sees fit. Its earning can be used to benefit the corporation.

5 Best Non-Profit Newsletters For Learning

Are you sick of being out of the loop? Being the last person in your office to know about new trends and interesting news? The easiest way to stay on top of everything that is going on the nonprofit world is by subscribing to newsletters. Pertinent and captivating information is delivered directly to your inbox every day, all you have to do is read.

 

Here are five of the best newsletters to get started with.

1. National Council of Nonprofits

To stay up to date on all national policy matters that may have an impact on your work, consider signing up for the National Council of Nonprofits newsletter. As an organization, they work to identify new and emerging trends, share best practices and business solutions, and help nonprofit organizations and the communities they serve. They can also provide information on state-specific policy issues. This newsletter also provides many valuable resources, tools and best practice guidelines that can be seriously helpful to your work.

2. Big Duck

Silly name, I know, but they provide some of the best information on branding and online marketing. In today’s day and age, having this info can be crucial for a nonprofit’s survival. They also share some of the best content on online fundraising that you can find anywhere on the web. Learn tips and tools directly from nonprofit communications experts. If you are involved or interested in communications and fundraising, Big Duck is the newsletter for you.

3. Social Media for Nonprofits

This monthly newsletter covers anything and everything to do with social media. If your job at all involves tweeting, posting, sharing, or subscribing, then this is the newsletter for you. Hear about the latest insights, advancements, and news in social media. Learn helpful tips and tricks for keeping your nonprofit organization relevant in the ever-changing world of social media.

4. Nonprofit Tech for Good

If the technology side of the nonprofit world is more your cup of tea, you will definitely want to check out the Nonprofit Tech for Good newsletter. This weekly newsletter provides a link round-up of every interesting and pertinent blog post and news story from across the web. They even supply links to upcoming nonprofit webinars and conferences. This newsletter will tell you everything you need to know from the technology, social media, and fundraising sectors of nonprofit.

5. Nonprofit Hub

For an immersive look at every aspect of running a nonprofit, check out this newsletter. Nonprofit Hub sends out information on everything that has to do with running a nonprofit. They only include the best content from across the web and present it in an aesthetically pleasing manner. This newsletter is designed in such a way that you can get all the information you need in a short glance then choose whether you would like to continue reading for a more in-depth look. This is a must-subscribe newsletter for everybody who works or has an interest in nonprofit.

Basic Points of Market Segmentation Everyone Should Know

Market segmentation can be referred to as the dissection of an entire market into subsets of businesses, consumers, or locations that have, or are perceived to have, principal requirements for goods and services. Other elements that are often considered when considering market segmentation includes customer interests, priorities and sometimes the pocket of prospects or their spending ratio.

In the real business world, market segmentation helps producers to make targeted and straightforward choices as well as take actions that would yield afterwards. Then implementing corresponding strategies to target them. For example, marketing of unisex winter cloths and cardigans may be observed and based on the seasonal weather condition of a particular region within a said period of time. On the other hand, if manufacturers discovers that a large percentage of the product is undoubtedly purchased by a grand mom, mom and housewife; a new segment requiring its sole separate marketing is realized.

Understanding the methodology in which a business segmentation operates does not only apply and deem important to the business owner; but to both customers who end up as final consumers. If you’re opportune to be here on this page -- below are few points and elements to know in market segmentation.

Quantifiable

Measurability is an imperative component of market division. Despite the fact that another section is distinguished, without knowing exactly what number of potential buyers it envelops, it may not be justified regardless of the hazard. Business publicizing, changes in item position and confusing value focuses all accompany a sticker price to the advertiser. In the event that the measure of customers, and the potential obtaining force of those purchasers, can't be measured, the advertiser can't precisely make a marketing spending plan to focus on the section.

Diverse

A market segment is described as having an alternate reaction to the marketing blend components, otherwise called the four P's. An objective market gathering will be distinguished in view of responses to the item itself, the value point given, the advancement or promoting techniques for the item and where it is sold, or its position.

At the point when a gathering of customers inside that market communicates diverse requests for the item, it transforms into its own section. There is an immense interest for mobile phones, yet young people and grown-ups have distinctive requests for the item. These two fragments will respond contrastingly to a business for a mobile phone, the cost of the telephone and how it is sold. The maker of the telephone will expected to devise different advertising strategy for marketing to achieve each of the sections.

Productivity

This is where the word “Productivity will mean same thing as Profitability”, Characterizing and focusing one another market segment is the initial move toward making a potential specialty market. Be that as it may, before consuming time, vitality and cash into endeavoring to catch this new portion, run some test questions. How sturdy is this market portion and is it sufficiently huge to earn a benefit? Back-to-class items may have a short promoting life expectancy, however the measure of shoppers that can be caught in that time make it a conceivably beneficial venture.