Episode 165: Is Starting a Non-Profit the Right Move?

Adding a Nonprofit to Your Therapy Practice: Pros, Cons, and Compliance In this episode of Therapy for Your Money, host Julie Herres, owner of Green Oak Accounting, discusses the considerations and challenges of adding a nonprofit alongside your for-profit therapy practice. Julie explains the logistics of setting up a nonprofit, such as establishing a C corporation and obtaining nonprofit status from the IRS. She outlines the advantages, like tax-deductible donations and eligibility for grants, and the disadvantages, including compliance requirements and the need for board members. Julie emphasizes the importance of staying in compliance and provides practical tips for managing finances between the nonprofit and for-profit entities. By understanding these factors, you can decide if adding a nonprofit is the right choice for your practice. "If you're just talking about getting a few hundred or a few thousand dollars in donations each year, it might not actually make sense for you to have a non profit alongside your business." Show Highlights 00:00 Introduction to Therapy for Your Money 00:45 Adding a Nonprofit to Your Practice 01:31 Understanding Nonprofits 03:36 Pros of Starting a Nonprofit 05:00 Cons and Challenges of Nonprofits 10:57 Compliance and Management Tips 13:50 Final Thoughts and Recommendations Resources and Links Money for Therapists Practice Startup - https://www.greenoakaccounting.com/startup GreenOak Accounting - www.GreenOakAccounting.com Therapy For Your Money Podcast - www.TherapyForYourMoney.com Profit First for Therapists - www.ProfitFirstForTherapists.com Profit First Academy - www.ProfitFirstForTherapists.com/Academy Podcast Production and Show Notes by Course Creation Studio