Fundraising
Can a nonprofit sell products or services and earn revenue? →
Yes. Nonprofits can and routinely do sell products and services and earn revenue. Earned income is a legitimate, common, and often…
Can a nonprofit or church run a raffle without losing tax exemption? →
Usually yes —running a raffle does not by itself jeopardize your 501(c)(3) or church tax-exempt status. But a raffle is legally a …
Governance & Compliance
Do nonprofit board members get paid? →
Usually no. The large majority of 501(c)(3) board members serve as unpaid volunteers. It is normal and appropriate to reimburse di…
Can I pay myself a salary as a nonprofit founder? →
Yes. A founder who actually works for the organization, typically as Executive Director or in another staff role, can be paid a sa…
Can a nonprofit have just one board member or be run by one person? →
Almost never a good idea, and in most states not even legally allowed. The large majority of states set a statutory minimum of thr…
What happens if a nonprofit doesn't file Form 990? →
The big one: if a nonprofit fails to file its required 990-series return for three consecutive years, the IRS automatically revoke…
HR & Employment
Do volunteers need to sign anything? →
In most cases, no single document is legally required for volunteers — but having them sign a few simple forms is smart risk manag…
Operations & Finance
Can a nonprofit make a profit or run a surplus? →
Yes. A nonprofit can and should bring in more money than it spends. "Nonprofit" doesn't mean revenue can't exceed expenses. It mea…
How much should a nonprofit keep in reserve? →
A common benchmark is three to six months of operating expenses held in unrestricted reserves. That is a starting rule of thumb, n…
Does a small nonprofit need an audit? →
It depends - many small nonprofits are not legally required to have an independent audit, but several things can trigger one. Ther…
Start a Nonprofit
How long does it take to get 501(c)(3) status? →
It depends on which application you file, but plan on anywhere from a few weeks to six months or more. The streamlined Form 1023-E…
What's the difference between a nonprofit and a 501(c)(3)? →
They're two different things at two different levels of government. "Nonprofit" is a state-level corporate status — you get it by …
Good Circles funds nonprofits — passively and automatically
This Answers library is free because Good Circles is built to fund nonprofits, not charge them. Supporters pick your cause once, then a share of their everyday local spending funds you automatically — about 10% of each merchant's net profit, conservatively ~$72 per active supporter per year (an estimate), recurring and free for your nonprofit.
See how it works for nonprofits →