How to Start a Nonprofit Organization

by Nicole Fallon, BusinessNewsDaily Staff Writer

In the world of entrepreneurship, there are generally two types of businesses one can start: a sales-driven for-profit company whose proceeds benefit the business owners, or a nonprofit company whose proceeds benefit a greater social mission. If you're passionate about a certain cause and want to start a business to support it, a nonprofit organization may be the right path for you.

There are plenty of benefits to running a nonprofit business. Besides making a meaningful difference in your community, you can receive public and private donations to fund your efforts and be tax-exempt if you file for 501(c)(3) status with the IRS. But incorporating a nonprofit isn't quite the same as launching a for-profit startup, and like any business, it will present some challenges along the way.

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