How Can We make Money in our Non-profit?
Non-profits that are tax exempt make money from various activities and the funds cover expenses. Income from these activities are generally essential to the non-profit’s survival. When a non-profit’s activities are associated with the non-profit’s purpose, all profits made from these activities is not taxable.
Fundraisers
Getting the word out for your fundraiser is the first step. Marketing for your fundraising event starts many months prior to the event. Invite celebrities, use social media, your website, and pass supporters of your non-profit to generate interest in your event. When you rent a venue or hire personnel for your fundraising event, inquire about non-profit discount. Sometimes the entertainers or celebrities will give reduced or free rates for your non-profits. This, of course, helps maximize your profit from the event.
Property Rental
Generate money from renting out rooms from property your non-profit owns. For example, if you own the building where you non-profit is located, you could rent rooms on the weekend or evenings when your non-profit isn’t operating to various private organizations. This income would be tax free. However, you cannot make a commercial business out of renting pace. Do not establish a separate entity to handle all rentals tied to your non-profit. Establishment of a separate entity would trigger taxes on the profit earned.
Selling Products
There are endless options for products to develop and sell for your non-profit. Ranging from t-shirts to key chains all sporting your logo. Including DVD’s, CD’s and other media with lectures, music, etc. from your events. Your non-profit would minimize its cost for these items to maximize profit. Be sure to shop around for excellent pricing and don’t forget to ask for non-profit’s discounts the supplier may offer. Consider using local suppliers to lower the shipping cost.
Royalties
Earn royalties from your publication. Royalties can be generated from various sources. Such as; book publishing, either self-published or a publishinghouse. These would include books you put together to earn your non-profit revenue. Examples:
- Domestic-violence non-profits producing materials for awareness
- Awareness books published for school counselors,
- teen abuse pamphlets for victims that details how to identify help.
Book royalties can be used to fund your non-profit.
If you need help deciding which actives are non-taxable, visit our website to schedule a free consultation. www.financialsolutionwizards.com.