Interviewing Roger Renner of The Arcadian Society, Part 2
May 17th, 2010
Q: How would someone know if their work, or mission, as you put it, would be suited to be organized as a non-profit? What kind of activities could be organized as non-profits?
A: Before one can make such a decision, it is important to understand what it means to be “non-profit.” Many assume that it means that the company doesn’t make money and always operates on a shoe-string budget. Being non-profit is a matter of legal structuring of the company or mission – not about how much money is made by its activities.
In a nutshell, “Profit” is money that is paid to investors or share holders in a venture after all company expenses are paid. The structure of non-profit missions or churches generally doesn’t include share holders. Thus the net proceeds of the endeavor remain within the mission for the exclusive use of the mission or ministry.
Functioning as a non-profit has a number of advantages and some disadvantages depending upon the intended activities of the mission. These must be carefully considered to determine if the advantages will outweigh the disadvantages in a particular situation. It would be wise to seek the counsel of someone who is very familiar with the operation of a non-profit mission to help in making that determination.
Many times people will organize their service to others as a business simply because they are not aware of their options. In so doing, they lose the advantage of certain immunities and exceptions that are available to non-profit missions.
These immunities and exceptions can greatly simplify the management of a small mission where funds and personnel may initially be limited.
As to what kind of activities can qualify, I would have to say that most anything could qualify as a non-profit activity, but it really depends most upon the attitude and motivation of the founder of the mission.
For example, restoring vintage automobiles could be conducted as a business, but it could also be conducted as a non-profit activity within a foundation formed for the preservation and appreciation for classic automobiles. It really depends upon the purposes and motivation behind the endeavor.
Likewise, an orphanage is usually operated as a non-profit ministry. However, it could also be operated as a for-profit business if its principals so desired. In this way, the subject matter of the mission is not as important as the purpose and motivation behind its creation.
We have assisted members of The Arcadian Society in establishing charitable, teaching, and healing ministries of all kinds. For example, some of them are operating soup kitchens, while others are conducting healing services as chiropractors, herbalists, energy healers, massage technicians, and holistic health consultants. Still others are providing teaching services of various kinds.
Many people who are now operating as a business could be operating as a non-profit. Much depends upon how they perceive themselves.
As an example, one woman that I was working with wanted the advantages of a non-profit operation, but she wanted to be considered a “business woman” and not the director of a non-profit mission. To her that title implied that she had achieved her “success.” She ultimately chose to organize within a traditional business structure and is now trying to navigate through the maze of bureaucratic red tape to which she could have been immune as a non-profit mission. Her own self image and ego kept her from the other benefits she desired.
Q: Can you still get paid to work for a non-profit organization?
A: Yes, of course you can get paid. Remember that the non-profit doesn’t give its earnings away to shareholders. It keeps its earnings to pay its expenses, such as the salaries of those who perform services for it.
Q: What is the importance of a mission statement?
A: If you intend to reach any destination, you need a map. In business you develop a business plan. The Mission Statement serves in that manner to help those who are guiding and directing the mission to reach its intended goals. I believe the Mission Statement should be a dynamic document that can adapt to changing conditions and new opportunities that become available to the mission along the way. It’s always a good idea to have an alternate route in the event that there is a road closure ahead. Pre-planning an alternate route will allow one to follow it with confidence if it should become necessary to do so.
If the mission will be seeking donations from benefactors, they, too, will want to see the plan for the future and how their contributions will be utilized. A carefully-considered and well-written Mission Statement will be invaluable at that time.
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