Blog

MYTH: I need a huge board of directors (or I don’t need a board at all, just me).

MYTH: I didn’t apply to IRS for 501(c) (3) tax-exempt status, so I don’t have to file Federal annual nonprofit tax returns.

MYTH: For my new nonprofit, I will put all family members on the board of directors, and we will control the organization.

MYTH: Nonprofits are not allowed to make a profit from their activities.

MYTH: I am going to convert my for-profit business to a nonprofit business.

MYTH: If we’re running our nonprofit efficiently, our overhead and administrative costs should be small.

MYTH: I am starting a foundation to give out school supplies to kids who cannot afford them. I can’t wait to see their little faces when I give them new backpacks and markers!

MYTH: I am going to be president of my nonprofit and make $100,000 a year!

Much has been said about a shift in how we describe the communities we serve. Instead of writing a classic “problem statement” detailing what is wrong, or missing, we’re urged to write instead about what’s right--what strengths a community already has that it can build on. This “asset-based” approach doesn’t deny that work needs to be done, it simply affirms the resources and resilience that already exist.

MYTH: Nonprofit and tax-exempt mean the same thing. MYTH: I own my nonprofit.