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Forum nameBiz Ideas
Topic subjectRE: Profit or non-profit
Topic URLhttps://www.businessownersideacafe.com/forums/dcboard.php?az=show_topic&forum=103&topic_id=731&mesg_id=1054
1054, RE: Profit or non-profit
Posted by Roseb441702, Wed Apr-18-07 11:20 AM
>I am currently a social worker who has noticed the increase
>in juvenile crime in my community. The biggest reason the
>teens I work with give me is that there is "NOTHING TO
>DO". I am interested in starting a teen center that would
>have all the teen essentials: video games, tutoring,
>basketball, activites, somewhere that teens can go "hang
>out" with supervision not security. I think using the
>center for Fri/Sat dances with a popular DJ. The trouble I am
>having is go profit or non-profit?? The thing that scares me
>the most is going non-profit- so much red tape and no security
>with the finaces. How do I decide? Profit or non-profit???

There is a growing trend of non-profits adding a for-profit aspect to their organization and this is what I would recommend to you. Why don't you just have the best of both worlds?

I firmly agree with the others that you should start with a business plan. You haven't mentioned some things like the building/property that you are going to be using for the center - are you going to buy it or lease it or what? There's a big difference in the expenses for a leased structure than it is for a structure you own. You will have some overhead such as utilities and the like (and unfortunately I agree that you should have some liability insurance because of the kind of center it is you want to have) and of course you will need staff which will involve taxes and payroll.

As far as the "grant" aspect of it goes centers like the one you are proposing get grant money all the time simply because of the reason that they have the center in the first place and that is to help kids - so there are no lack of grant programs in that area.

As far as the "red tape" goes its all going to depend on how you look at it. That red tape is necessary for non-profit status and without the non-profit status you won't be able to receive donations that are tax deductible - plus the other benefits of being a non-profit. If the financial part of it scares you then the only solution is to put in place a plan to make sure that the financial aspect of it won't be so scary - one of the reasons I suggest you look into having a for-profit aspect to your center.

Of course what you are doing is highly commendable but keep in mind that that the better you plan this the less surprises that you will encounter. Just think of your business plan as a road map to where you want to go.

Rose
Grant Basics 101
http://members.aol.com/Roseb441702/grants.htm