Why the Nonprofit Sector Should Worry about Sector Blurring

sectoral blurring

May 13, 2015; Entrepreneur

 

As we know, there are any number of misunderstandings about nonprofits among businesspeople, in the same way that there are misunderstandings in our sector about the benefits of being a business. This article, which is derived from a new book by the staff of Entrepreneur Media Inc. entitled Start Your Own Business, sounds an alarm about the ways that the nonprofit sector is being sold to business entrepreneurs. 

The article starts by listing the reasons why you might want to start your business in nonprofit form. “Unlike a for-profit business,” it reads, “a nonprofit corporation may be eligible for certain benefits, such as sales, property, and income tax exemptions at the state level.” After reminding people in short form about the non-distribution requirement, it admonishes, “Keep in mind that nonprofits are generally organized to provide some benefit to the public.”

Then the article goes into how to organize as a nonprofit, complete with a link to download the form. The article concludes, “Even after you settle on a business structure, remember that the circumstances that make one type of business organization favorable are always subject to changes in the laws. It makes sense to reassess your form of business from time to time to make sure you’re using the one that provides the most benefits.”

Does this bother the rest of you the way it bothers me? An abomination!—Ruth McCambridge