What is a Non-Profit Organization
As the name suggests, a non-profit organization does not work with a view to earn any benefits out of its services. These are groups that are shaped for serving a definite public service. It will be a long list if one has to jot down the groups that fall in the non-profit organization category.
However, here we list some of the groups that are recognized as a non-profit organization.
- Credit unions
- Employee pension funds
- Any Religious organizations
- Colleges or universities
- Public arts organizations
There are a lot of ways by which a non-profit organization can be set up. It can be as simple as only an informal group, to as vast as being a tax-deductible organization. A non-profit organization, which is aka NPO, can be formed by the coming together of like-minded people. It can also be recognized as self-help groups.
If such a group is still in its initial stages or is still informal, as said above, it hardly requires any paperwork to give it an official status. If like-minded individuals come together and form such a group that has hardly anything to do with monitory benefits, then there is absolutely no need to formalize the group.
However, even a non-profit organization can get involved in financial activities, be it only adding a separate wing to the local library or museum. Non-profit organizations that are trying to establish themselves can ask for help from their elder siblings in the business. The smaller NPOs can get not only a helping hand from the larger NPOs, but also tax exemption status.
Some non-profit organizations can be exempted from tax for certain categories. They will not be liable for federal income taxes. To attain this status, an NPO should be a recognized entity. It should have its work profile at least on a state level.
However, if these organizations hire experts or works for any reason, they are bound to pay the required amount of taxes. However, they can be exempt from all other taxes (even if they are working on a state-level).
If you want to serve the society, then joining a non-profit organization will be a good idea. But there are a lot of organizations who are not much serious about serving the society. Don’t go for them. It will earn a bad name for you in the future. Moreover, the experience gained in a valid non profit organization can add weight to your CV in a great way. Recruiters will appreciate your genuine concern towards the masses. It will help you in getting a quality job later on in life. Moreover, working in such an organization brings a lot of peace to the soul.