Debunking Myths About Nonprofits – Let’s Make Sure to Get the Facts

Debunking myths about nonprofits means making sure to get the facts straight about nonprofits. One of the favorite myths about nonprofits is the idea that they are ‘nice to have’ because they ‘do good things.’ But, in fact, nonprofits make a significant contribution to our national economy in so many ways. To that end, GrantWatch wants to help set the record straight when it comes to debunking myths about nonprofits. In fact, we think this is such a crucial part of grant funding that we identify over 6,000 grants in our grant listing directory in a special Grants for Nonprofits tab at the top of its webpage!

The Nonprofit Sector is an Economic Engine

Nonprofits employ more workers than manufacturing in over half of the states.

One of every 10 employees works for a nonprofit organization.

Nonprofits pay higher wages than for-profit social assistance organizations, educational institutions, and hospitals.

From 2007-2016, nonprofit employment grew by 16.7% while for-profit employment grew by 4.6%.

Northern Illinois University, Center for Nonprofit Studies, “The Nonprofit Sector is an Economic Engine,” by Dr. Alicia Schatterman

But some people still don’t quite understand what being a nonprofit means. Below are some examples of those myths, together with the reality:

Myths About Nonprofits

Myth: Nonprofits can’t earn a profit. Reality: The term “nonprofit” is a bit of a misnomer. Nonprofits can make a profit and should try to have some level of positive revenue to build a reserve fund to ensure sustainability. The key difference between nonprofits and for-profits is that a nonprofit organization cannot distribute its profits to any private individual (although nonprofits may pay reasonable compensation to hose providing services). The prohibition against “private benefit” is because tax-exempt charitable nonprofits are formed to benefit the public, not private interests.

Myth: A well-run nonprofit should have low “overhead” costs. Reality: Operating costs, such as paying utility bills, rent, salaries, and investing in office equipment are referred to by a variety of names, including “overhead,” “administrative costs,” and “indirect costs.” While the terminology varies, one thing does not: these costs are essential to delivering on a nonprofit’s mission, and have no relation to the level of effectiveness or the outcomes a charitable nonprofit may deliver.

Myth: Nonprofits don’t have paid staff; they only use volunteers. Reality: According to the John Hopkins Center for Civil Society Studies an data from the Bureau of Statistics, in 2016, nonprofits employed 12.3 million people – that’s 10 percent of private employment in the United States!

Myth: Nonprofits get most of their funding from foundations. Reality: Private philanthropy, which includes both donations and bequests from individuals and from private and corporate foundations, represents only 14% of the annual revenue to the charitable nonprofit community, and of that, the majority is from contributions from individuals.

Myth. Most nonprofits are large and have many resources. Reality: 92 percent of all reporting public charities had annual revenue of under one million dollars.

National Council on Nonprofits, “Myths About Nonprofits“

Below are some grants for nonprofits currently available.

Grants for Nonprofits

1. Grants to nonprofits to provide entertainment for physically challenged individuals. Funding is for events and experiences including athletic programs, recreational activities, and day trips. In fact, the goal is to provide unique, inspiring, and fun experiences that are not easily accessible or possible for people with physical challenges.
2. There are grants of up to $5,000 to grassroots groups, tribes, First Nations, and organizations to mitigate the negative impacts of mining. Moreover, priority funding is for projects that protect ecosystems. Funding is also for projects that protect the environment, community health, and cultural resources from mining impacts. This includes projects requiring scientific, legal, or technical expertise.
3. In addition, grants of up to $40,000 to judicial courts, related court organizations, Institutions of Higher Education (IHEs), nonprofits, individuals, government agencies, and corporations to develop and enhance curricula to meet the educational needs of their jurisdiction. Courts are to submit applications for the adaptation of curricula, or for the implementation of training and educational programs.
4. Grants to eligible IHEs to support the teaching/research careers of faculty members in the early stage of their careers in the chemical sciences. Nominees will have demonstrated contributions of significant knowledge and education-related achievements within the field. Consideration will also be for past awardees and honorees, published research in leading journals, and success in attracting research funding.
5. There are grants to nonprofit providers of out-of-school programs to enhance extracurricular programming for students in grades 6-8. The funding supports summer and after-school educational programs offering the guidance and skills needed to prepare students for high school. Additionally, applicants must serve a high percentage of low-income youth.

In-kind Grants and Additional Other Grants for Nonprofits

1. Also, grants to nonprofits, agencies, and IHEs for projects that preserve African-American heritage-sites related to African American heritage and culture. Funding is to advance preservation projects currently in place for historic places such as sites, museums, and landscapes. Activities can include programming, planning, capacity building, and capital projects.
2. In-kind grants to nonprofits, municipalities, law enforcement entities, businesses, and boating agencies to promote water safety. The purpose is to make life jackets available for boating and other water activities at no cost. In addition to life jackets, grantees will receive signage, a press kit, and a program manual. Applicants may apply for a loaner stand building kit and life jackets, or just for life jackets without the stand.
3. Grants of up to $5,000 to eligible nonprofits for initiatives addressing injustices worldwide. Programs will be in a broad range of areas, including the arts, hunger and homelessness, environment, women, public health, and disadvantaged youth.
4. There are grants of $2,500 to libraries for meaningful programs benefitting the public. Funding supports libraries with little access to budget assistance. Programs can be virtual or hybrid. Funding is to be used for supplies, promotion and publicity, staff time, payments to project partners, and purchase of collection materials. The focus for this year’s grant program is civic education.
5. Lastly, grants of up to $1,000 to under-resourced PreK-12 schools for opportunities to experience outdoor sites. Funding supports projects with both educational and stewardship facets. The goal of the program is to help students discover and explore parks, historic sites, public lands, and waters.

We hope we’ve been able to dispel some myths about nonprofits. Also, we hope one of these grants can help a nonprofit achieve their goal!

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Please Note: There is no guarantee by GrantWatch nor the author that grants will be awarded as a result of this information.