How a Nonprofit Business Can Benefit Your Community


When you think of a business, what generally comes to mind is a for-profit organization or corporation. However, did you know that there are over 1.5 million nonprofit organizations in the United States alone? That’s almost 10% of all businesses! So, what exactly is a nonprofit business, and how can it benefit your community? Let’s take a look.

Dr Philip Baldeo, defines a nonprofit business as “an organization that is organized and operated exclusively for charitable, educational, religious, or another similar purpose, and which does not distribute profits or other economic benefits to its members, directors, or officers.”

In other words, a nonprofit is an organization that exists to provide some sort of social good rather than to make a profit for its owners or shareholders.

There are many different types of nonprofits, but some of the most common include charities, churches, foundations, and political organizations. Nonprofits can range in size from small local organizations to large international charities.

What basically is a Nonprofit Organization?

A nonprofit organization, according to the National Council of Nonprofits, is “an entity that uses its net earnings to further achieve its purposes rather than distributing them as profit or dividends.” In other words, a nonprofit is a type of business that focuses on furthering a particular social cause or advocating for a shared belief instead of making money for its owners or shareholders. As such, nonprofits are often exempt from certain taxes.

There are many different types of nonprofits, such as charities, associations, foundations, and religious groups. Some well-known examples of nonprofits include the Salvation Army, the American Red Cross, and Habitat for Humanity. These organizations rely on donations and grants to sustain their operations.

How Can a Nonprofit Benefit My Community?

Nonprofits can have a positive impact on local communities in several ways. For instance, they can provide much-needed services and support to individuals and families in need. They can also be instrumental in raising awareness about important social issues and working to bring about positive change on a local level.

Furthermore, because they are often exempt from taxes, nonprofits can help stretch limited government resources by shouldering some of the burdens. Lastly, nonprofits can help create jobs and spur economic activity in struggling communities by opening up new businesses or expanding existing ones.

How to Start a Nonprofit

If you’re interested in starting a nonprofit, the first step is to come up with a mission statement. This will help you determine what your organization’s purpose is and what goals you hope to achieve. Once you have a clear idea of what you want to do, you can begin the process of incorporating your nonprofit and applying for tax-exempt status from the IRS.

Starting a nonprofit can be a daunting task, but there are many resources available to assist you. The U.S. Small Business Administration offers an online course on starting a nonprofit, and the website StartUpNation has an extensive guide that covers everything from writing a business plan to filing for 501(c)(3) status.


There are many benefits that can come from supporting a nonprofit organization in your community. Nonprofits play an important role in helping those who are less fortunate and working to bring about positive change on a local level. Furthermore, they can help stretch limited government resources and spur economic activity in struggling communities. So next time you’re looking to support a local business, don’t forget about your community’s nonprofits!

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