To be a successful entrepreneur, you need a good product or service, a hungry market, and a credible brand. When you have a trustworthy brand with a positive reputation that speaks for itself, people will be more likely to buy from you and speak highly of you to others.
However, earning this level of trust takes time and effort; it’s not automatic. While there are several traditional methods you can try, one of the best ways to earn trust and build credibility in your market is by starting a nonprofit organization.
It shows others you care about society
When you run a nonprofit, it automatically tells people you care about society. Whatever group of people you choose to serve, everyone will know you’re committed to supporting them. This can have a positive impact on your reputation, even when that’s not the main reason for starting your organization.
Once you’re associated with a nonprofit making a difference in the world, you and your for-profit businesses will benefit from your nonprofit’s positive reputation.
You can defend the underdog or the unpopular
If you’ve always wanted to support a cause, a nonprofit gives you that chance. When you take a stand for a controversial or unpopular cause, you’ll naturally divide people, but that’s not a bad thing because the more you divide people, the stronger your supporters become. If you truly believe in your cause, it’s worth supporting, no matter how many people oppose you. Those who understand your mission will back you up and become die-hard fans.
For example, not everyone has a positive perception of police officers, and anti-police sentiment – no matter how unwarranted – runs hot across the country. The National Police Association (NPA) is a nonprofit dedicated to restoring respect for, and trust in law enforcement officers across the United States. They also file FOIA requests and enter as a friend of the court when there’s an opportunity to make a positive difference for police officers and citizens in cases that have the potential to impact the law. The NPA has a large number of fierce supporters that only become more dedicated with time.
It’s an opportunity to be generous
Running a nonprofit gives you the opportunity to be more generous than if you only ran a for-profit business. This is mostly because it’s easier to generate donations for a nonprofit than a corporation. If you were to run the same fundraiser as a corporation and as a nonprofit, your nonprofit would get more donations.
If there’s a cause you want to support, but you can’t do it on your current salary, starting a nonprofit will open the door for collecting donations from those who also wish to support the same cause. People love donating to nonprofits, not just for the tax breaks, but because they want to support good causes.
It makes philanthropy easier
Once you have a successful nonprofit, you’ll have more resources available to make philanthropic contributions to the causes you care about most. Whether you choose to donate money or send your team of employees to help a particular cause, you can make a bigger difference.
It will help you position yourself as an authority
Many nonprofit organizations are known for creating educational materials for the public or for industry professionals, and you can do this, too. The benefits of publishing educational content are numerous, but most of all, it will elevate your authority. People already perceive nonprofits as somewhat ‘selfless’ organizations, and when you start helping others for free, it will shape people’s perception of you.
When you share in-depth content that truly aims to provide valuable information and insight, that’s when people will start to recognize you as an expert in your industry. When people see you sharing things that other professionals withhold, you’ll be seen as someone who really knows their subject matter.
There are tax benefits and deductions
Your business can receive several different tax benefits for starting a nonprofit. When you set aside a portion of your business profits to use for nonprofit purposes, you won’t need to pay taxes on that income. It’s a win-win because being charitable lowers your taxable income while boosting your credibility in the marketplace.
Start creating your nonprofit today
If you have an idea for a nonprofit, don’t wait to start building your organization. The sooner you get started, the faster you’ll be able to make a difference for the cause you want to support.