Sometimes You Have to Lose Money to Make Money

There’s an interesting discussion going on over at Ask MetaFilter on the advantages of turning nonprofit. Seems a tiny alternative monthly paper in Chicago that’s making no money is batting around the pros and cons, and one of the staffers there posted to AskMeFi to solicit opinions there. The prevailing view is that such a move would give the paper far greater access to the foundation grants it seeks. As one responder put it:

I can’t speak to Chicago specifically, but the world of foundation grants that would be open to your non-profit vastly exceeds the opportunities for grants to individuals.

To give you a sense, there are, I understand, about 80,000 charitable foundations in the country. Majority of them will/can only give to registered 501(c)3s (non-profits).

Should be a good read for any organization on the fence about the profit/nonprofit decision.