Non-Profit Organizations

A non-profit organization is a legal business entity that does not exist for the purpose of generating profits, but rather, for the advancement of a mission that provides a public benefit, consistent with the statutorily permitted purposes under applicable state law.  Non-profits are also referred to as Sec. 501(c)(3) organizations, so named for the Internal Revenue Code section that affords their tax-exempt status.

How is the creation of a non-profit a powerful vehicle for policy change?

• Some non-profits may be eligible to receive public and private grants.
• Because no part of a non-profit’s income is distributed to its members, directors, or officers, its mission and activities are untainted by financial conflicts of interest. This reinforces the organization’s credibility when it takes a public stance regarding important issues.
• The formation of a non-profit requires a clearly articulated mission, and the clarity of purpose enhances increases the group’s ability to gather additional support for its mission. Raising operating capital and demonstrating widespread support for the mission are two factors that ultimately increase the probability of persuading lawmakers to consider the non-profit’s policy objectives.
• An established non-profit entity can more easily engage in direct legislative campaigning in favor of, or in opposition to, specific legislation, whether by means of formal testimony, informal meetings with elected officials, and engagement of the general public.