Page 88 - South Mississippi Living - August, 2021

story by Victoria Snyder
Chances are, you’ve heard of nonprofits. What comes to mind is probably a small organization with volunteers that are trying to make the world a better place. And that’s true, to a point. There’s more to nonprofits than meets the eye.
“In the technical sense of the term, a nonprofit is an organization that has received its 501 (c)3 tax status from the IRS,” says Dr. Ann Marie Kinnell, Chair of the Mississippi Alliance for Nonprofits and Philanthropy Board of Directors and director of the Nonprofits Studies program at The University of Southern Mississippi.
“Nonprofits are often referred to as charitable organizations as they do not use any profit generated to enrich owners or stockholders but
to further their missions,” she explains. The main difference between for-profits and nonprofits? For-profits are created to generate wealth
for owners and stockholders whereas nonprofits generate income (from donations, grants, fees for service, etc.) to further their mission. “It’s not that nonprofits do not generate a profit; it’s what they do with the profit that distinguishes them.”
A common misconception about nonprofits is that they are small, mostly work with the poor, and have only volunteers. In reality, a nonprofit can be any type of organization in industries like healthcare, education, the arts, animal welfare, legal help, and environmental justice. Nonprofits also have full-time employees to keep the organization running. “Don’t just judge an organization solely on how much they spend on overhead and fundraising,” cautions Dr. Kinnell. “Remember that organizations need to pay their employees and have other business costs. Very few nonprofits are all volunteer organizations.”
The nonprofit sector has many misconceptions surrounding it. Now, you have a clear picture of what nonprofits are.
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HOW TO BEST SUPPORT YOUR LOCAL NONPROFITS:
Get Informed: Find one whose mission speaks to you! You can research on their website, or if they don’t have one, you can search for their purpose and financial information on the Secretary of State’s website.
Donate: Support the nonprofit financially by giving donations of money or goods! “Even if a nonprofit charges for services, they are likely not covering all of their expenses,” clarifies Dr. Kinnell.
Volunteer: If you can’t afford to donate monetarily, you can always donate your time by volunteering! Volunteering is a great way to learn more about an organization and get involved in its mission.