When you want to start a business, you will undoubtedly hear terms like “limited liability company,” “nonprofit,” and “not-for-profit,” among others being mentioned. While it can be easy to ignore these terms and what they mean, they are crucial for the future and direction that you take as an organization. Unlike for-profits, nonprofits and not-for-profits have different models, and their taxation, governance and functions are different under the law. Nonprofits and not-for-profits contrast with the for-profits in how they are run and taxed. Here are the things you need to know about for-profits, nonprofits and not-for-profit ventures so that you can find out which one is the right one for you.

While it may sound simple, nonprofit governance is not an easy task. However, it can work well for organizations that do not want profits as part of their mission or purpose. Starting from your board, you need to consider many essential components and rules before venturing into the nonprofit governance structure. For organizations such as those in arts, conservation, health, or religious activities, this structure is the right one. The importance of this structure is that when you receive non-profit status, you get to keep more money for your cause. Here are rules you should understand if you intend to start a nonprofit.

New donations are fabulous, but recurring donations are even better when it comes to allowing your nonprofit have some consistency in contributions. When it comes to nonprofit fundraising, recurring giving provides a reliable source of income for your nonprofit to run operations and fund causes without worrying about financial challenges. Therefore, developing a reliable monthly giving program is an excellent investment that will significantly affect the financial health of your nonprofit in the long term. A recurring giving program is a donation where donors automatically donate a certain amount of their money to a nonprofit of their choice periodically. They can do so weekly, monthly, quarterly, or annually. Here are some benefits of recurring donations.