How Does Establishing Not-For-Profit (501c(3))
Status Benefit the Marketability of an Organization?

Abstract

Every type of organization both small and large needs marketing to survive and continue in business. Even though marketing may not be the reason why an organization was established, it stands as the core of business behaviors. Any type of organization can become a not-for-profit organization, but why? Why compete with for-profit businesses or go through the hassle of becoming established with the IRS? Not-for-profit organizations continue to show growth in its market of the US economy, equaling or even rivaling with their for-profit counter parts.

How Does Establishing Not-For-Profit (501c(3)) Status Benefit the Marketability of An Organization?
A Review of the Literature

Not-for-profit organizations (NPO’s) serve a very important role in society and thus, are often given a special status. The Internal Revenue Service (IRS) is very selective when granting Section 501 status. Any organization can establish itself as a NPO, as long as it meets the metrics laid out by the IRS. The Section 501 status grants tax-exempt status within 24 different categories of organizations. (Andreasen & Kotler, 2008) 1. Are Not-For-Profit Organization Business Savvy? 2. What are the perceptions of Not-For-Profit Organizations? 3. How do Not-For-Profit’s differ from For-Profit Organizations? 4. Why become a Not-For-Profit Organization?

This review of the literature on Not-for-profit organizations marketability focuses on these four questions.
Are Not-For-Profit Organization Business Savvy?

NPO’s provide goods and services that contribute to the common good of society. While these goods and services may be charitable, educational, or religious in nature, according to United States law, any organization can qualify for not-for-profit