I work in a historic museum that is well supported by its community and the city. One day a customer came into my organization looked around, and started suggesting that we sell more framed prints in order to make a profit, she said, “you could make a profit”. It seemed like she was unsatisfied with the museum, it is a small museum, but it has its purpose. it was like she was unhappy with the tourism aspect of our organization. Is it appropriate to suggest something like that to an organization that is non-profit. It is our members, visitors, patrons, and trustees that make our organization what it is.
Was it rude of her? She was not a member, and she was not affiliated with the historic association by business. She did not even hand over a business card. What do you suppose her motive was? Would you ever just walk in to a non-profit historic organization and start suggesting things tp sell in order to make a profit? just wondering…
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What Is A Non-profit Organization?
Posted on December 30, 2010.
Just because you’re a non-profit doesn’t mean you can’t do things to raise funds for the organization. How else are you supposed to pay the bills, and the mortgage, and the taxes, and the salaries of your workers? Wouldn’t it be nice to be partially self-sufficient, instead of depending entirely on the “community and the city”?
It sounds to me like the customer was making a helpful suggestion. It’s not in the slightest bit rude. I’m kind of surprised that you are so upset by this.
Yes, of course it’s OK. She was just trying to help. A non-profit is a misnomer of sorts I guess. It doesn’t mean the organization doesn’t make any money or has no profit. It is simply a status that an organization can attain through the IRS. To maintain its status, a non-profit must do things like invest in the community, and they can compete for grants.
I actaully think it was a great suggestion. I mean you need money right? Wouldn’t it be nice to have new carpeting or have teh resources for better exhibits? I am sure you can think of many ways to use $ for the organization. You’re goal should be to raise all the $ you can – whether through donations, grants, or sales of products. Then use that $ to better the organization and the community. I think you should have thanked her for the suggestion.
Best of luck
A non-profit organization is set up under the tax laws. You might be surprised as to what type of organizations can qualify. The Green Bay Packers are the only non-profit, community-owned franchise in American professional sports major leagues. The NCAA uses the Bowl Championship Series, a set of four bowl games that operate as 501(c)3 charities and have agreements with the major conferences to set up a series of season-ending one-off bowl games. Many golf tournaments that have prizes in the millions of dollars are set up as non-profit.
There are two major types of 501(c) organizations that most might recognize. The category 3 restricts how the money can be used. No contributions to candidates, etc. 501(c)4 organizations have much greater leeway.
So an organization can be profitable and still be a non-profit. However, in certain circumstances, taxes may be levied on sales that are outside the specific scope of the organization.
There are actually 28 different non-profit categories in the tax code, and see link. In Some States, Blue Cross is non-profit, and in other States they are not.
As far as motive, I do not attribute any negatives to her suggestion. More likely related as to whether the museum is maximizing its full potential.