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4 Reasons Why Your Work Needs to be an NPO

Posted by Devayani Bapat

February 21, 2024

There are many advantages to being a non-profit. When setting up a firm, consider these four benefits

We live in a world marked by diverse challenges, and setting up an NPO is a powerful way to drive positive change and serve the greater good. Whether your mission as a company is to eradicate social injustice or foster community development and protect the environment, an NPO is here to help you do just that and more.

Starting an NPO is a fulfilling path to create an impact. It connects you with like-minded individuals united by shared values and a drive for positive change. An NPO goes beyond the money or the fame. It helps build a community fueled by passion and purpose, striving to make a meaningful difference in the world together.

What dominates the choice:

There are a couple of factors that we emphasize one must consider when deciding what status to set up their organization as — a nonprofit or for-profit:

– The amount of capital investment available

– The market they’re looking to enter

– The accessibility to resources

– The willingness that customers display to interact with and avail of your services

Over centuries, one has observed that the choice between for-profit and nonprofit was clear-cut: for-profit businesses aimed to well, profit, and nonprofits tackled social or environmental issues. But as social entrepreneurship has grown, the lines have blurred. Over the years, impact investors have emerged, supporting ventures aiming for financial and social returns. The focus has shifted to integrating CSR policies into business modus operandi. Hence, the decision between for-profit and nonprofit is crucial and should be approached thoughtfully, considering each venture’s unique circumstances and goals.

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Here are four reasons why we believe your work needs an NPO and not a regular company:

1. Gain credibility

The biggest problem one faces when starting a new business is gaining the loyalty and trust of their customers. Starting a nonprofit organization offers significant advantages, including credibility, goodwill, and trust within the community. This approach allows entrepreneurs to differentiate themselves in the market and gain a competitive edge. Strategic philanthropy underscores the importance of businesses contributing to social causes to boost brand reputation. It signals a commitment far beyond financial gains, emphasizing societal impact and human advancement.

2. Saves on taxes

Tax benefits and donations play a significant role in supporting the work of nonprofit organizations (NPOs), something you must consider when picking what structure suits your company best.

Let us draw you a parallel between the fictional world of Batman to help you understand this concept better. In various adaptations of Batman, Bruce Wayne is often observed channeling his wealth in a philanthropic manner to support the civic infrastructure of Gotham City by donating to nonprofit organizations tackling crime prevention, poverty, and education. If desired, Wayne Enterprises could leverage tax benefits while positively impacting the community.

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Individuals can maximize their impact on various global issues by establishing nonprofit organizations and donating significant sums while optimizing tax advantages. If you’re a company looking to contribute to society with a mission, an NPO rather than an FPO is the best route.

3. Find yourself your support squad

Community engagement and trust are integral components of nonprofit organizations, and NPOs heavily emphasize the power of collective action and solidarity. 

If you’re looking to build a company seeking community support, then an NPO is your best choice. Community engagement and trust are integral components of nonprofit organizations (NPOs). They often have deep roots within their communities and enjoy high trust from stakeholders. As an NPO, you can tap into networks and relationships focused on driving the same mission, gaining access to valuable resources and support. 

4. Make an impact

“It is every man’s obligation to put back into the world at least the equivalent of what he takes out of it.” – Albert Einstein.

Establishing a nonprofit arm alongside your business offers a unique chance to leave a lasting legacy and drive meaningful change. Setting up an NPO can help transcend financial goals and actively contribute to societal advancement, dedicating resources to support causes. Founding a nonprofit lets you pursue long-term objectives that positively impact lives, demonstrating commitment to social causes, attracting support from prestigious entities, and amplifying the impact of your initiatives. Creating a nonprofit arm creates a timeless legacy, leaving a lasting imprint on society.

The Final Word:

Starting a nonprofit offers immense benefits for you and the community you’re a part of. It is a powerful avenue for channeling your passion into a tangible, positive impact. While NPOs can significantly contribute to financial growth, they help make the world slightly better. After all, if society moves forward, you move forward; it’s just one of those things that go hand-in-hand, right? So, if this sounds like something you’re looking to achieve with your business, going the NPO route might be your best option.

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Want to know more? Escalon has helped over 5,000 companies across a range of industries to improve their compliance in terms of internal controls and streamline processes. Talk to an expert today.


Devayani Bapat
Devayani Bapat

With 6 years of experience in copywriting and social media management across genres, Devayani's heart lies with weaving words into stories and visuals into carefully crafted narratives that’ll keep you wanting more. She carries with her, her pocket notebook, a trusted confidante that goes with her wherever she goes, and scribbles down into it anecdotes on the go. Her secret weapon for keeping all things copy interesting! Apart from writing, Devayani is huge on travelling. You'll find her booking her next adventure while she's on her current one. And while on those adventures, you'll find her devouring true crime books one after the other. Whether it's a low down on a recent case or one that occurred 70 years ago, she can cook up a story narration you'll never forget.

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