Why are more Fort Lauderdale, Florida, residents asking about starting a nonprofit corporation? That is a question that has been on our minds for some time. We decided to address nonprofits in today’s blog by answering some of the questions that Floridians ask.
Nonprofit corporations in Florida typically arise out of someone’s desire to help others. Many of those interested in starting a nonprofit believe several untruths about this type of business formation and planning. We hope to put these misconceptions to rest so that you can focus on your efforts.
Get some of your answers about nonprofits here!
Unfortunately, we cannot address all the questions we field about forming a nonprofit. However, we have selected five questions to answer in the section below.
1) Does the founder of a nonprofit get compensation? Yes, founders are entitled to reasonable compensation for their work in the nonprofit sector.
2) Do employees get paid? Since you would be hard-pressed to find suitable employees to work without pay, the answer is yes, workers in nonprofits also earn an income.
3) How can nonprofits make money? Many nonprofits rely on donations, but they can also make money by selling goods and services.
4) Can the business make profits? Yes, they can earn profits, but founders must ensure that profits go right back into the business.
5) Are nonprofits exempt from taxes? Yes, but only earnings associated with the purpose of the nonprofit are exempt from taxes. Profits from other endeavors are non-exempt.
If you want to form a nonprofit in the Fort Lauderdale area, we recommend learning more about business formation and how to run a nonprofit lawfully.