YOUTH DEVELOPMENT ASSSOCIATION(Y.D.A)
BENEFITS OF
ASSOCIATION/ORGANISATION.
What are the advantages of starting a
non-profit organization?
Advantages of starting a non-profit organization
Most of the income of a non-profit is exempt from income taxes. The
contribution from a donor is also tax exempt in most of the cases. A non profit
organization can receive grants or aid in contrast to business entities that
have to use loans as a means of raising funds.
Can a nonprofit organization offer
employee benefits?
Nonprofit organizations can still offer employee
benefits. Because a nonprofit organization must go through the incorporation
process, it opens the door for employees to have a chance to receive specific
benefits with their employment contract.
What are the disadvantages of
non-profit organizations?
List of the Disadvantages of Non-Profit
Organizations. 1. The paperwork requirements for nonprofit organizations is
extensive. When a company receives its exempt status, then the nonprofit must
keep detailed records that the public can access in some way. Failing to meet
the administrative requirements can result in a forfeiture of this status.
What are the tax benefits of being a
nonprofit?
Nonprofits can qualify under the 501 (c) federal
corporate income tax exemption. After establishing this exemption, most
nonprofits are exempt under state and local tax law. This status also increases
the chance of investments to a nonprofit, as individuals are more willing to
donate to organizations that will help reduce their tax liability.
To be continue later................
