When starting a business, you are likely to come across many phrases, key among them some terms like “nonprofit” and “not-for-profit” often thrown around. While it can be easy for you to assume that they mean the same, they are actually different from each other. That is why you need to understand it properly before you embark on the company registration exercise. The differences between the two have implications on taxation, governance and functions. While the two are close, they contrast with for-profit organizations. Here is what the terms mean so that you can understand which one is the right one for your business venture.

So many people launch a nonprofit to help others. The problem is that they don't realize that their own profits could use some help too. Just like any business, nonprofits need to focus on making the most of their resources. For example, if you're a doctor selling an overpriced medical device, you might want to get out of the business as soon as possible. But without a sizeable stock of your product or service, you're just wasting money and effort. If you're a financial advisor offering discounted investments or mortgages, then it's time to invest in your brand and become profitable again.

Whether you are an established or a new nonprofit, there is always room for assessing, updating and adding on your fundraising strategies. To help you achieve this, there is a need for a comprehensive nonprofit annual plan. We have developed helpful tips and things that you need to understand to guide you when developing the correct annual planning for your charity.