Truths and Myths about Nonprofit Organizations

In today’s world, we have more accurate data about nonprofits than ever. You can find everything you need to know and even more. But there are still some misconceptions about nonprofits. While the creators work hard to regard them on the same level as other organizations and companies, there is still some confusion about how they usually work, if they are profitable and what causes they support.

In many articles, you can find truths you didn’t know about nonprofit organizations and a few myths you may believe. In this blog, we are going to clarify some of them.

Myths about nonprofits

Nonprofits do not need Profit

The biggest myth about how nonprofits work is associated with the term “nonprofit”. This type of organization should have a positive reserve fund to ensure its sustainability, but they are not working with revenue as its focus. The profit they make should benefit the public and not the private interests of individuals. It’s known that profit is not the main focus of nonprofit organizations. But for their mission to be well-driven, they have to maintain a positive revenue to keep their sustainability.

Nonprofits do not have Employees

People assume that only volunteers can work for nonprofit organizations. But almost 12.3 of the US population works in the nonprofit sector, which makes it 10 percent of private employment.

Being a creator of a nonprofit and managing it requires a lot of work and a team of people. And for nonprofits to work successfully and have positive results, volunteers and employees should be a part of the organization. There is no doubt there are a lot of volunteers who want to help in causes that are part of their interests, but employees are an inevitable part of every nonprofit organization.

Nonprofits funding come from Foundations

The profit in this type of organization does not come only from foundations and large donors. A big part of the nonprofit revenue comes from private fees and government grants. The rest of the profit comes as donations from foundations and individuals who support the nonprofit cause. Having one donor will not keep the organization’s stability. To keep their mission going, nonprofits have to earn revenue from sources other than foundations and large donors.

Truths about nonprofits

Nonprofits serve the Community

The main reason why nonprofits start working is the cause they are supporting. The organization’s growth must have people who share the same interests and focus on the same cause. Nonprofits are vital for the community and help with certain issues. They are always prompt to address important questions, embrace diversity, and share experiences. Helping the community does not always mean addressing important questions and issues. Many nonprofits provide programs and services that educate people on different topics.

Nonprofits are independent

Although we have previously mentioned that nonprofits receive donations from different donors and foundations, they function as independent organizations. Unlike governments, nonprofits don’t have to wait for votes when they want to act on specific issues and raise important questions. People can rely on nonprofits when it comes to promoting individual initiatives that serve the public good. Nonprofits can support their cause, and at the same time provide help to the less fortunate in many areas – education, health, arts and crafts, humanities, etc.

Nonprofits are the voice of the people

By playing a vital role in creating a healthy community, nonprofits have to act in many important ways. Nonprofit creators are the voice of people. But to understand them, nonprofits are working on building strong relationships with the communities, getting to know their needs, and finding the best ways to meet them.

How Social Friday changes the perception of nonprofits?

By celebrating togetherness, the Social Friday initiative supports the cause of reinventing Fridays, where companies, NGOs, and individuals from the local community can join. In the past few years, Social Friday organized many events where people worked together to create a better community and help the less fortunate.

Being a part of a nonprofit such as Social Friday has a lot of benefits not only for the companies but also for NGOs, students, and people from the local community. What makes this initiative powerful are building relationships, sharing similar interests, and sharing experiences.

Social Friday for Companies

More and more companies partner with nonprofits to create better branding, build better internal relationships, and gain potential customer loyalty. One of the benefits for the companies is to boost team spirit, build a loyal customer base and show their ethical values and beliefs.

Social Friday for NPOs

NPOs can gain a lot of opportunities and expand their circle of contacts for future partnerships with companies. When being a part of a Social Friday event, nonprofits increase the visibility of their mission, raise awareness about their existence and purpose, drive more donations and gain long-term support from companies and individuals.

Social Friday for students

Students are the catalysts for a better society and a healthier economy. Being a participant in a Social Friday event can mean so much for the students. Developing new skills, meeting different types of people, learning social skills, and finding new interests are some of the benefits for the students who can participate. Students are the leading force for a better future, and by participating they are taking action to correct the flaws of our society.

Let’s build a better society together!

Doing good deeds takes so little, and can mean so much. The Social Friday initiative does it at regular intervals, because we know that communities need support throughout the year, not just before the holiday season. Repeating something, again and again, can turn altruism into a habit. So, let’s turn doing social good into our habit!

Join our upcoming Social Friday event here.

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