Can you make a living starting a non-profit?

[wiggingout]

I'm a psych nurse and artist/musician. It's always been my dream to make a living being involved in the music/arts world. That didn't pan out, so I turned to my second passion, caring for others, particularly those with mental health issues.

I'm very early in my career but want to start thinking about what I can do to combine these two passions. I would love to start some sort of non-profit charity (concert series, awareness group, hold different events/fundraisers - I know it's very broad right now, hoping to sort out the specifics over time), but I'm curious as to whether it's possible to make a living doing something like this...

How do those that start-up a charity make a living out of it? I know it's a very basic question, but how do you actually get paid if it's a non-profit organization?

I'm not looking to get rich, would just love to make what i make now (50k) doing what i love, being my own boss, and not at the bedside.

[NedRN]

You have exactly the same ability to pay yourself a salary that you would in a for-profit, perhaps higher as investors do not take shares and the entity tax burden is lower. What you can pay yourself is exactly the difference between revenue and expenses, just as in any other business.

By the way, there are a number of different kinds of non-profits, not all are "charities". I think the only reason to consider a non-profit entity here is if you expect to donate some large part of your revenue, too large to deduct as an expense in a for-profit entity. There is a huge disadvantage in a non-profit for what you are planning in that you will not be able to deduct any losses personally. Financing events is hugely risky and requires a good bit of capital upfront. That is your money and if you lose it, you will not be able to deduct it if you gave it to a non-profit venture (other than a small amount).

[passionflower, BSN, MSN, RN]

You sound very much like myself, I have been working on some entrepreneurial ventures for a few years now and finally am at the tail end of my program which will be working with youth ages 14-21. I originally wanted to start up a for profit business but realize it had to be non-profit. Currently I have been educating myself about non-profits but am also in the early stages of it. It is a lot of work to go through and not to mention the business itself!

That is the reason I initially did not want to become a non-profit because I thought it would take me away from the core part of my company and I would be spending my time scouting for money. I decided to try a different route at least initially - after I have finished wading through the non-profit filing status - and that is to apply for a grant. I have someone who knows about grants helping me.

Have you looked into grants? Be aware that many organizations supplying grants request your 501 c3 status. You should google your state and search non-profit/grant info. That is all I can tell you as I am at the very beginning stages of this whole process myself. I personally know people who have started whole programs and hired staff based on grants, you would need to educate yourself and get people who know what they are doing to help.

Also, some colleges offer online classes on non-profits. Good luck with everything! It's nice to know I am not alone. Let me know if I can be of any help in the future.

[mercurysmom]

I am a self-employed and plan to change my business to non-profit status at some point. For the past eight weeks, I have been working with a business consultant in order to write my business plan, financial records, marketing, etc. Her advice for my particular business was to work for at least 3 years as an owner/operator before looking into non-profit status. By doing it this way, I will have a much better "feel" for my clients and services. In addition, I'll have tangible results to show potential grantors. With a few years of experience as an entrepreneur, I'll be able to prove that there is an ongoing need for my services, my client base is growing, and that my business has earned a positive reputation. At that point, I will be able to provide documentation related to the projects that I currently offer, and then I can apply for grants in order to expand my services.

Good Luck!