Most people have no clue what it takes to be a non-profit

Most people have no clue what it takes to be a non-profit. There are different types of non-profits but lets talk about charities. Most of the money goes into paying the workers salary and to whoever the charity benefits. Some of the money goes into operational costs. The reason it is called non-profit is because any money the organization “makes”(profits) should go to whoever/whatever the charity benefits.

Now the complicated shit comes in with peoples salaries and operational costs. This is where you get in trouble with the IRS. To be a non-profit means you are exempt from certain taxes. However, to get and maintain that status then the IRS are going to get audit you.
They are going to be looking at things like does this person really deserve that salary? Was it necessary to buy that fancy new copier? Did the organization sell anything off and was it considered a capital gain? There are tons and tons of financials that need to be gone through.
It is much harder to run a non-profit because anything that has to deal with money needs be checked, double checked and approved. You can not simply say well we need to buy this to efficiently run this organization and we have the money to do so. Instead you need to think… are we allowed to have this?

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