Is Habitat for Humanity a nonprofit?

What is a nonprofit organization?

Habitat for Humanity is a nonprofit organization which is defined as an organization that is tax-exempt by the IRS due to its social cause, and mission to help the greater community. A business cannot be labeled as a nonprofit without the commitment to serving the greater community as a key pillar of the business. Unlike a for-profit business, nonprofit organizations do not allocate funds towards the advancement of the business for financial gain or benefit.

Part of a nonprofit requirement is making all operating and financial information public in the form of an annual report. An annual report includes the financial health of the company, along with a breakdown of expenses, sources of income, fund allocation and changes over the past year (e.g a hiring plan).

Nonprofit organizations are often confused with not-for-profits. Both terms are fundamentally similar, meaning, they both use earned dollars to fuel the business and its mission, however, not-for-profits are not required to operate for the public good. An example of a not-for-profit would be a local tennis club. That club operates and uses funds to serve the team members of the club, but does serve the greater public outside of that organization.

Challenges for nonprofits post COVID

Being a part of a nonprofit organization has incredible benefits, the most obvious being the feel-good element knowing that you are showing up to work everyday with the goal of helping others. However, since nonprofit funding relies heavily on the community, there is an immediate cause and effect with what is going on in the world and nonprofits’ ability to achieve their mission as an organization.

The COVID-19 pandemic is an example of a crisis that impacted many nonprofits and their ability to fundraise. Due to the pause of in person events, many nonprofits had to move fundraising events and activity online. A shift that was uncharted territory left many nonprofits feeling overwhelmed and out of water, and as a result, relying on the generosity of virtual donors more than ever.

Deciding which organizations to donate to

Gifting to a nonprofit is an incredible way to support your community, and most nonprofits have a few ways to go about it. At Dallas Area Habitat, we have our donations set up as a one-time only opportunity, recurring donation, in memory of a loved one or to celebrate a life milestone. These options allow flexibility to gift when it suits you.

When thinking about a nonprofit to support, there are a few things to consider:

1. Find a nonprofit that aligns with your personal belief and mission
2. Ensure the nonprofit is valid. Unfortunately, there are many organizations trying to pass off as a nonprofit when they are not. The Internal Revenue Service keeps a database to validate whether an organization is a registered charity and if your donation will be tax-deductible.
3. Review your donation options. There are often corporate matching opportunities within the workplace that you can take advantage of

Other than donation, there are a lot of ways to support nonprofits in your community

There are a lot of volunteer opportunities to explore within nonprofits in your area if a financial gift is not available to you. Reach out to the nonprofit of interest and inquire about volunteer opportunities which can range from office admin, physical events or making phone calls.