Recently, I found it odd that starting a non-profit business is more expensive than a for profit business. I have a friend who is hoping to start a socially conscious business and so her business model could be non-profit or she could do a for profit business. She met with a lawyer, and after discussing her options with him, decided to make it a for profit business. This is because starting a non-profit business is almost triple the cost sometimes and there is a much larger load of paper work you have to complete. You would think the government would encourage non-profit businesses since they are mostly formed to help people or the world in general, but I guess not.
As you might assume, non-profits can also go out of business just like a for profit business, but again it takes a lot of paperwork. The recent economic downturn has made many non-profit business become jealous of the for profit business getting bailed out while the non-profits are left up to dry. However, in the past week, congress has continued debate on a diaster loan relieve program to help non-profits cope. I am sure the debate will continue to go on, but hopefully congress can do something to help our charities and school systems as well as big businesses.
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