4 Interesting Benefits of Running a Non-Profit Business

Featured image by Kelly Sikkema from Unsplash

Business runs our world. No matter what your opinions are on the matter, companies provide goods and services to make a profit. They typically take those gains and reinvest them into the company to continue to improve their bottom line. This is the most basic definition that encompasses every potential reason for a business to exist. There are still times when making money for the sake of business growth is not the sole factor for going into business. Enter the non-profit organization.

The purpose of a non-profit is to take the money gained from doing business, and put it back into the community. Non-profits address issues like child hunger or other forms of human suffering.

As the merits of non-profit organizations have continued to be expressed, industries that are typically for-profit have started to get in on non-profit business practices. Non-profit auto insurance companies are just one such example of this trend. 

We’ll cover the many non-profits that have cropped up over the years, along with the benefits of running different types of non-profits. What will we see in the future for non-profits? There’s a lot to discuss, and these are the four most prominent high points for the concept of starting non-profit organizations. 


1. Introducing Necessities to Those in Need

This is probably the first thing you think about when you contemplate the benefits of a non-profit. Many of these organizations put their resources and funds earned toward helping those who need basic essentials. We’ve all put a few dollars in the red bucket during Christmas when the Salvation Army is standing at the door. 

What people don’t think about is how many non-profits there are that support other things than just food and water. While these are pivotal for all of us to stay alive, there are a lot of other issues non-profit organizations try to help solve through their mission statement. 


We all know how important technology is to our modern economy. However, many don’t have the opportunity to get in on the revolution. So, if this is something that bothers you, think about starting a non-profit to provide computers to poverty-ridden areas. This will allow people to engage in the technological-business sphere, like making their perfect blog idea come to life. 


Our environment and our wildlife are in grave danger right now. Human-caused climate change is destroying our planet. Moreover, it’s taking away natural habitats for animals that have lived in the same places for thousands of years. If you are passionate about helping to create cleaner energy, start a non-profit car company that sells eco-friendly vehicles. 

You can find even more non-conventional nonprofit organizations if you are interested in starting your own and want an example of success. Think of something that needs special attention. If you think you can help a section of the population with a non-profit, go for it. 

Quality of Life

If you are interested in helping people get other necessities, like car insurance, think about getting involved in non-profit insurance companies. The policyholders are the ones with the control and the power instead of the bosses upstairs. It seems obvious that something like insurance would benefit from a non-profit model, but it’s taken a while to catch on. 

Furthermore, knowing you’re doing good for the world is one of the most fulfilling things you can do in the world of business. Non-profit organizations do this with sharp ideas and clear execution. 

2. Your Business Could Be Tax Exempt

Many people get dissuaded to start their own business. Mainly because they worry about the taxes that will follow. It can get pricey to answer to the IRS every year, especially if you get into a higher tax bracket. 

Also, starting a non-profit organization is a great way to contribute to your community and get into the business world without giving back to the government. Non–profit organizations are tax exempt under the Internal Revenue Codes. 

The reason non-profit organizations are exempt is that they help do things for society that the government would normally be held responsible for. Non-profits are public-owned institutions. They don’t need to give money back to the public because their entire profits go to public services.  

Make sure you research the tax parameters of your non-profit before just assuming you will be exempt. Some types of organizations still have to pay a section of profits to the IRS in special circumstances. Try to see the factors that will contribute to this possibility and don’t ever assume anything. 


3. Creativity Can Flourish

There are more restrictions placed on the creative boundaries of traditional for-profit companies. Everything revolves around gaining new customers, whether that is through social media advertising or traditional TV spots. 

When you run a non-profit company, the only pressure you have is to help society and the people around you. This means you can have a larger leash and more creative freedom in getting this mission completed. 

There aren’t shareholders to address. There aren’t end-of-year profit goals to reach. Employees don’t have the pressure of hitting certain benchmarks to keep their jobs. Non-profits give liberties that other businesses don’t have. So, this makes everyone pull the rope in the same direction, and produces better results in the end. 

4. Everyone Is Supportive of the Cause

The working environment of a non-profit is so much more inclusive and encouraging. Furthermore, the type people who work at these places have a passion for the projects being done and the people being helped. They agree with the objectives on the whiteboard every morning. They are there to help their neighbors and their fellow humans, not make money to survive. 

If you want to start a company where all your employees are on the same page as you are, start a non-profit. You are never going to get this quality when you start a traditional business. An enormous benefit to social-cause businesses is the selflessness at the core of the business model. 

So, all these benefits work in unison to create a special experience that helps people around the world. You can have great intentions of helping your community in for-profit businesses, too. Still, they are never going to be as pure or precise in bringing those good deeds to life as a non-profit will. 

Shawn Laib

Shawn Laib writes and researches for the auto insurance comparison site, He wanted to help entrepreneurs understand the potential business ideas in the non-profit world by sharing this article with us.