1. 5
THINGS
TO
CONSIDER
BEFORE
LAUNCHING
YOUR
COMPANY
AS A
NONPROFIT

2. Filing your business as a nonprofit makes it
eligible for a number of perks and restrictions
that may not immediately come to mind. If
you're already thinking about launching your
startup as a nonprofit organization, it probably
already meets some of the initial criteria. But
before doing so, make sure that you're ready!
Keep these five things in mind during the
process:
So, you're thinking
of a nonprofit?

3. 1. IRS
QUALIFICATIONS

4. Make sure your company
meets meet the IRS’s
definition of a 501(c)(3)
organization! The IRS
considers an NPO to
be charitable, educational,
literary, religious, or
scientific (among other
things!)
Don't forget that while you
can pay your employees, you
cannot make a profit. You are
also not allowed to give
earnings to private
shareholders.

5. 2. SHARED
LEADERSHIP

6. In a nonprofit, founders are
typically expected to share
leadership with at least one
other person. This is often in the
form of an advisory council or a
board of directors. Give up the
reins!

7. 3.
TRANSPARENCY
REQUIREMENTS

8. Stay one step ahead in your accounting. Nonprofits
can be subject to auditing from either the IRS or the
Board, so make sure all your bases are covered when
it comes to sharing information. And be honest!

9. 4. PERKS

10. Benefits that come with being an NPO
include tax-exempt status, or discounts on
postage and tools. The organization may
also receive invitations to special events!

11. 5. EMOTIONAL
REWARDS

12. When you run an organization that
makes a positive impact, the biggest
benefit is the rewarding nature of the
work itself. People who work for
nonprofits often find gratification
beyond the salaries they are paid when
they see the fruits of their labor. When
you work at a company that changes
lives, seeing that you make a
difference in the world is an incredible
feeling.