Nonprofit
The structure of a nonprofit is just as critical as the structure of any business. 99% of all nonprofits in America are structured in a way that limits what they can do and funds that they draw. 501c3 is not a structure in and of itself. 501c3 status is just a letter of acceptance from the IRS that makes the entity tax exempt. Most nonprofits are corporations that have received 501c3 acceptance. What does this mean for that nonprofit? It means that every dollar donated needs to be used for the specific purposes/programs of that nonprofit and for the operation of the nonprofit.
All of the large nonprofits that raise hundreds of millions of dollars are all structured differently. Hospitals, Universities, Museums and Cultural Institutions use a different structure. That structure is The Private Family Foundation! The Private Family Foundation also has a letter of acceptance from 501c3. What makes this particular entity different and what benefits does this allow them that most nonprofits don't have? There are 2.
THE PRIVATE FAMILY FOUNDATION CAN:
1) Lobby congress! They can actively engage in the political process!
2) They can have an investment account!
The first of these privileges is self explanatory. The second however is critical. This means that a nonprofit can actually grow the funds that are donated. All of those listed above can and do engage in the endowment process. Look up any university in your area and search out their endowment. This is how large nonprofits increase their revenue to operate on a much higher level. This draws more money because endowments operate in perpetuity. They're a never ending income stream for both the nonprofit and the donor.
To understand how to structure your nonprofit in the most beneficial way to draw more funding please contact us to schedule a consult.