Non Profit Organizations

A non profit organization, sometimes referred to as a non-for-profit or simply as a non profit, is an organization that focuses primarily on serving a public or private interest. Non profit agencies can be created to benefit a number of causes.
 
 
Some of the most common non profit agencies include:
  • animal charities
  • arts charities
  • Catholic charities and other religious charities
  • children’s charities
  • educational charities
  • environmental charities
  • health care charities
  • political charities
  • research charities
  • sports charities.
This is by no means an exhaustive list. Non profit organizations can benefit a number of other causes.
 
Many people choose to start non profit organizations in their own communities to benefit local causes. Personal foundations and family foundations are also becoming popular ways to benefit specific causes.
 
Charities must be monitored and must meet certain criteria to be legal charities. Specifically, the government requires charities to spend their money in a certain way. However, along with these requirements, the government also offers charities and those who donate to them special breaks. For example, those who donate to non profit organizations and charities can often get tax benefits for doing so.
 
In this section, we cover all aspects of non profit organizations, including how to set up a non profit organization. Our articles will also provide you with information on personal foundations and family foundations, legal aspects of charities and tax benefits for charitable contributions.

Setting Up a Non Profit Organization

Setting up a non profit organization can be a difficult project that can also be very worthwhile. Many people decide to form a non profit organization when they see and believe in a cause that no such organization already exists to benefit.
 
However, just having a cause to advocate is not enough. There are a number of requirements and channels to go through to form such an organization. Financial regulations and a number of other rules and regulations must be considered before a person considers setting up a non profit organization.

Personal Foundations

Personal foundations are similar to non profit organizations and are usually set up in memory of a particular person. In many cases, personal foundations are set up to donate money to a particular cause, often a specific disease.
 
Family foundations and personal foundations can be set up online for ease of use. Money can be donated from individuals to groups or other individuals through personal foundations.

Legal Charities

To be legitimate, non profit organizations must adhere to specific legal regulations that have been set forth to govern them. These legal regulations exist to ensure that charitable donations will really be used for the things for which charities say they are going to use them.
 
Sadly, scam charities have sprung up in a number of places in the past, so philanthropists should ensure that the organizations on which they choose to bestow their generosity are legal charities.

Tax Benefits

While the feeling of doing a good thing to benefit others can usually be enough for philanthropists donating to non profit organizations, there is another benefit: tax breaks.
 
Those who donate money to charitable organizations can reap tax benefits if they donate within the parameters set forth by the IRS. The organizations to which they donate must be legitimate, and records must be kept of donations for philanthropists to receive their tax benefits.
 
Resources
 
Independent Charities of America (n.d.). Personal and Family Foundations. Retrieved December 10, 2007, from the ICA Web site: http://www.independentcharities.org/Foundation/info.asp?
Title=Your+Own+Personal+Charitable+Foundation&sBody=FOU.
 
Oprah.com (2007). Non-profit organizations. Retrieved December 10, 2007, from the Oprah.com Web site: http://www.oprah.com/uyl/makedif/uyl_makedif_nonprofit.jhtml.