A nonprofit organization takes any profits it receives from goods, services, donations, or sponsorships, and cycles them back into the organization to further achieve its mission.

Nonprofits commonly serve communities (clubs, associations, or chambers of commerce, etc.), or are organized around social causes (humanitarian aid, disease research, education funding, etc.). In contrast, for-profit businesses distribute profits to the shareholders and investors of the organization.

It depends. However, it’s not free — you can't start a nonprofit without any money. A few of the startup costs you can expect for your nonprofit are:

Incorporation: Depending on your state, this can cost up to $270. Becoming incorporated is necessary to remove personal liability from you as the founder, as well as to attract many grants and funding later on.

501c3 Status: If you intend to start a 501c3, that isn't free either. Expect to pay $275 or $600 depending on the 1023 is filed.

Website Setup: If you want people to be able to find your nonprofit, you need to have some kind of online presence. You can start off with a free website using a platform like Wordpress.com, but it won't have the same official presence as one that's on a paid platform.

Yes! Just because it's called a "nonprofit" does not mean you don't make any profit! However, all of the income that the nonprofit makes, must be placed back into operating activities, whether this is for rent, serving their clients, or for paying staff. It must also relate back to their mission and the community they serve.

Yes, a nonprofit founder can receive a salary. Although many founders feel guilty about asking for a salary when they’re first starting out, remember: to invest in your nonprofit, you also have to invest in yourself. Just like any other employee, you deserve to be compensated for your hard work!

Yes, it’s just like starting any other venture. You will need a lot of time and a lot of patience to get it going. To make your nonprofit a success, you’ll need to build a network of support around you.

As the saying goes, Rome wasn’t built in a day — and you won’t be able to build your nonprofit in a day, either.

Some ways you can still contribute to solving the problem you initially set out are:

• Starting a chapter of an existing organization

• Donating to other nonprofits

• Volunteering or serving on the board of another organization

• Setting up a for-profit business that helps support other nonprofits

• Starting a giving circle (in which you and other people give time and financial support to other nonprofits in your area)

Nonprofits do not need 501(c)(3), or even federal tax-exempt status to operate, depending on their goals. Having 501(c)(3) status comes with specific benefits that other designations do not have, but a nonprofit's mission and financial size dictate whether the organization ever needs this status.

They typically receive funding from the general public, government, and private foundations.

They may perform public service, but primarily raise funds and provide grants to other nonprofits that provide direct service. You can find many such grant-making public charities in your local area.