Business isn’t always about money. Sometimes, starting your own company means creating a community with one common goal—serving the public good.

For the past years, the business world has developed into different kinds. Each has its strength and style when showcasing its advocacy toward the online market. Everyone has formed different strategies for introducing to the world who they are, what they do, and how they do it. From selling different products that will suffice the needs of the online market to offering services that will make life much more accessible, the e-commerce world is indeed a description of your one-stop shop.

Among these businesses, many have started taking their advocacy to another level. Their goals are different from how a usual entrepreneur does his job.

Managing a world that is not only for sales but, most specifically, for a feeling of fulfillment is their primary target. What are they? We now introduce you to the world of nonprofit organizations.

What is a Nonprofit Corporation?

A nonprofit corporation is built to serve the public good. It is an organization that mainly creates charitable, educational, religious, and public service activities. Nonprofit corporations are established to be a business that helps rather than solely get money. One of its main goals is to provide the best benefits to the public.

Nonprofit corporations are also created under the laws of the location where they were established. When you start a nonprofit corporation, any money or revenue left after the company pays its bills is returned to the nonprofit organization itself. Some types of nonprofit organizations have the power to receive tax-deductible contributions from the individual who contributes to the said nonprofit corporation.


Image taken from The Project Nomad

Common Types of Nonprofit Corporations

Understanding what is a nonprofit corporation means learning its three basic types. Each type of nonprofit corporation has its benefits and restrictions.

501(c)(3): Best for Charitable Nonprofit Corporations

501(c)(3) are the most common type of nonprofit corporation. When you start a 501(c)(3 nonprofit corporation, your main goal is to raise money by soliciting different donors and grants. These types of nonprofit corporations address global issues like the lack of education, giving spiritual support, and conducting medical research. The best example of this is private foundations. Instead of managing charitable programs, private foundations fund other nonprofit organizations by providing them with grants.

Nonprofit corporations under this type aren’t encouraged to participate in political or lobbying activities. If they do, they must limit the funding of such-related activities by up to 10% of their overall operational budget.

501(c)(4): Best for Political Nonprofit Corporations

Nonprofit corporations under 501(c)(4) are also referred to as social welfare organizations. The main purpose of their existence is to boost the public good. Unlike the first type, these nonprofit corporations can participate in political and lobbying activities. They are allowed to promote political candidates and even endorse legislation.

Under 501(c)(4) nonprofit organizations, donations aren’t considered tax-deductible. In usual cases, 501(c)(4) nonprofit organizations must disclose to their solicited donors that their contributions are not tax-deductible.

501(c)(7): Best for Social Nonprofit Corporations

501(c)(7) nonprofit corporations are primarily social and recreational-related. These nonprofit corporations run membership organizations wherein members fund the company through fees and dues. 501(c)(7) nonprofit corporations include dinner, hobby, country, community association, and amateur sports clubs.

Nonprofit corporations under 501(c)(7) type must receive up to 50% of the funding of their club members. Nonetheless, 35% of the donations can be from nonmembers. 15% of this nonprofit corporation funds can be allocated for public use of the facilities and services they offer.

Benefits of Starting a Nonprofit Corporation

Starting a nonprofit corporation may sound weird to some.

Why would you create a company that is not meant for earning? Wouldn’t that be a disadvantage for a businessman? Well, to answer your queries, nonprofit corporations are more beneficial than how they look. Among the benefits, you’ll gain in learning what is a nonprofit organization.


Image taken from Providence

Own Existence

One thing about nonprofit corporations is that they have their separate existence. Unlike a typical company, a nonprofit corporation can enter its sue and contracts and be sued under its brand name. Nonprofit corporations are responsible for their own contractual and other brand obligations.

Limited Liability

Nonprofit corporations protect their directors, officers, and their members against being accountable for the corporation’s debts and liabilities. The statute provides limited liability protection for the nonprofit organization’s people.


A nonprofit corporation can apply for federal and state tax exemption status. Unlike other companies that have not been built under state law, it is much easier for nonprofit corporations to file an application for tax exemption and be approved immediately. This is also one of the main reasons many entrepreneurs are interested in starting a nonprofit organization.

Grant Access

There are some kinds of nonprofit corporations eligible for public and private grants, making it easier for them to get a capital fund. Some specific grants are allocated only for 501(c)(3) organizations, and tax-deductible donations. Under 501(c)(3) nonprofit corporations, contributions made by individuals toward the company are already considered tax-deductible.

How to Become a Nonprofit Corporation?

Starting a nonprofit corporation can stress you initially, especially if you need help figuring out where to begin. Here are helpful tips and tricks to smoothly start a nonprofit corporation.

Do an Analysis.

Just like any other business, nonprofit corporations aren’t for everyone.

You must have the funds and, most significantly, the perseverance. Before you start strategizing your nonprofit corporation plan, conduct an analysis first. Ask yourself, is a nonprofit corporation business meant for you? Can you handle the needs of your target audience? Will you be able to offer your services consistently? Do background research on whether nonprofit corporations are doing well or not in your community. Conducting this step can help you identify how you could get support for your nonprofit corporation. It would also be helpful to get a detailed report about your target area's demographic and population data. Find out which services are highly needed and which goals are not usually fulfilled within site.

At Strikingly, you can start your nonprofit corporation and freely spread your advocacy. Like one of our users, Playfight, you can consistently provide your target beneficiaries with the best services and offers. Playfight believes in the beauty of expressing yourself. One of their goals is to provide a safe space for their clients to let out their emotions and connect with them with complete respect.


Image taken from Playfight

Develop a Plan

Once you finally get a grip on your target location, start planning for solutions and alternatives. Starting a nonprofit corporation with a blurry goal could get you into a complicated situation. One of the nonprofit corporations' most common challenges is gaining and maintaining a reliable income stream. You must find the best alternatives to save your nonprofit organization from financial distress. To effectively do this, start formulating the best strategies to offer sincere service to your community. As soon as you gain the experience, you’ll eventually develop support from people and other organizations that earn your trust and your nonprofit corporation.

Franklin Scholars is among Strikingly’s best nonprofit corporations. They know they have the knowledge, experience, and potential to influence others positively. Franklin Scholars use their platform to equip promising students with the best skills and tools they need to be emotionally intelligent mentors and influential leaders of the future generation.


Image taken from Franklin Scholars

Build a Foundation

After developing your plan, it is time for you to build a solid foundation. Start drafting your nonprofit business mission statement. Write everything that could tell your audience who you are. Develop your purpose, who you will serve, and what strategies you will implement to help them. This would also be the time for you to develop a reliable board. Every member you appoint must take full responsibility for their roles and legal obligations. Recruiting the best members is crucial to how effective your nonprofit corporation will be. Conducting orientations, training, and evaluation is one way to a nonprofit organization’s success.

Wondrous Film is a Strikingly nonprofit website that knows how to build a solid foundation well. This nonprofit corporation has been in the industry since 2013. Wondrous Film is a nonprofit corporation having a team of passionate Filmmakers and Visual Effects Artists. One of their objectives is to help their clients from around the globe have a deeper connection with their target audiences. They use various online narrative and visual effects techniques to craft compelling stories about their business’s brand.


Image taken from Wonderous Film

Prepare the Requirements

One of the most important steps you need to do is register your nonprofit corporation. The state you are in will not recognize nonprofit corporations that are not registered under their laws. Prepare all the documents you need to save yourself from other conflicts when you arrive at the designated registration office.

Start a Nonprofit Corporation Website with Strikingly


Image taken from We Are Superheroes

Nonprofit corporations are easier to handle with a powerful website. Here at Strikingly, we ensure that our users can perform their duties well. We offer different powerful tools you can use in starting a nonprofit corporation website. Our Happiness Team is also always one chat away to answer your queries and help you with emergency web-building needs. The best part about creating a website with Strikingly? We offer awesome discounts for nonprofit corporations!

Do you want to know more about creating a non-profit corporation website with us? Chat with us now, and we’ll get you started.