Category Archives: #RealTalk Tuesday

Should you start a nonprofit or a foundation?

Hey Socialife Tribe!

If you’ve ever considered starting a foundation or a nonprofit but aren’t sure which one you should start.  This is the video for you!

One thing to keep in mind is that all charities are nonprofits even foundations but all nonprofits are not charities. The reason this is important is because some nonprofits are not created for public benefit but all charities (in order to be deemed a charity) must be for public benefit.

Often times if your for purpose organization does not qualify as public benefit some organizations will go the foundation route.

If you are considering some of the main differences or just to get a better understanding of what a foundation is and whether or not you should list yourself as one or even use it in the name, here you go! If you’re considering starting your own nonprofit check out my 7 steps here.

The main points

  1. Foundations are typically funded by individuals or corporations.
  2. Foundations are required to pay out 5% of their net assets from the previous year.
  3. Foundations can run charitable programs w/o setting up a nonprofit.
  4. Foundations can set up scholarships and award programs and choose the recipients.
  5. Foundations provide funds to for profit companies as long as they are used for charitable purposes.
  6. Foundations and nonprofits must go through the same process to get started.
  7. The word foundation has no legal meaning

There are two types of Foundations: Operating and Non-operating.

  1. Private Non-Operating Foundations: 
  • most common foundations (Bill and Melinda Gates, Large corporations)
  • do not directly perform services or programs
  • provides grants to other nonprofits

2. Private Operating Foundations

  • distinguishes its funds to its own programs or services for charitable purposes
  • can provide grants to other nonprofits
  • can be run very similar to a nonprofit


  • All Foundations are required to distribute about 5% of their net assets from the previous year.
  • Cannot do business with major contributors




Can I make a salary as a nonprofit?

First off, lets address the time on this video. It’s longer than normal. I went on a bit of a rant when it comes to salaries and nonprofits but I can assure you that there is some good information if you’ve been questioning this decision.

Be sure to sign up for the Socialife Diaries: to get all of the upcoming times for my next live trainings, email me directly and receive weekly advice or join other entrepreneurs with a purpose in our Socialife Tribe FB group. Or just connect with me on social, you can find me at @ashleelaunches!!

Thanks so much for watching! Let’s Unleash YOU!