For profit or non-profit? I'm starting a new business, would appreciate insights.

[mahina]

This project works on the obstacles to renewable energy transition, access to financing and access to locally useful information.

I have never even laid eyes on a grant, but I understand from some people I respect here that this project would have more doors opened to it if it's a non-profit.

Any non-profit people out there? How much hassle is it to do all the reporting that is needed?

Any smart entrepreneurs out there who've had to make the same decision? What swayed you, and do you think now that you decide correctly?

Mahalo...

[JerseygirlCT]

1. I'd start by looking at what it takes to get your classification

as a non-profit. If you think your idea fits the bill, then I don't think the paperwork required is very difficult.

From there, though, you'd have to start from scratch. Building a base of support is not easily done - it can be done, but I wouldn't count on grants to come flying in over the transom. Especially right now, both individual donors and foundations (not to mention corporations) are tending to support fewer charities, and those are usually charities they've known and supported for years already. Again, not saying you can't succeed, just that this is going to be a particularly tough climate in which to do it.

You're going to need to get up to speed on public relations, on grantwriting (lots of resources out there for that) and on generally how to talk about what you're doing, and why it will benefit people - and how, exactly.

If you're in this for mostly altruistic reasons, and you feel confident of your ability to tell that story in a compelling way, then go for it. Let me also warn you though - this isn't likely to be something that earns you a significant living. You'd be in it for what you can offer, not for what it can offer you, you know?

ETA: this is an IRS link - should have the basics of applying, I think:
http://www.irs.gov/charities/article/0,,id=96109,00.html

[Callalily]

2. I work for a non-profit.

and I'll tell you upfront, non-profits are suffering, and suffering dearly. Even our most dedicated supporters are telling us money is tight, and if they have (ahem) extra income, let's say dollars to give away, they are supporting children who have lost their jobs, or grandchildren or hanging tight in case health care issues demand extra funds.

Non-profits are truly suffering right now, so I'd be very cautious. You can not depend on those who have been philanthropic in the past. It's clearly different time now than it was even a few months ago.

That said, good luck with your endeavor. It is very noble.

[Kip Humphrey]

3. Consider the Paul Newman model: make a decent profit then give it all away.

Allows you to invest & build the business while doing good things with the profit.