Social Entrepreneur, Nonprofit Nightclub

[DavidC]

Has anyone every considered opening a nightclub that is not for profit? I for one love nightclubs for many reasons and my heart is into opening one for many others but money is not a big part of those reasons, that may sound very idealistic but its true. I really have not need or desire to be making over 60,000 dollars a year.

After taking care of employees, I wouldn't mind seeing profits from a club going toward a worthy cause or charity; or even setting up some sister nonprofit organization related to your nonprofit club. For example, all profits from your nightclub go into building sustainable, affordable housing for low income individuals and families. What I am really trying to get at here is the question, is there a way to have your cake and eat it too? Operate a successful and popular nightclub while benefiting the community with its success?

If the project received nonprofit status, could investors received tax deductions for their funding and later be repaid that investment/funding amount? This would allow a funder/investor first a tax deduction on whatever amount they donated and if the money was returned if/once the club was successful, they would then have gotten their money back as well as a sizable tax deduction.

If the above scenario is possible, would this make it easier to get funding? We all know when money gets involved people can change, and if funders/investors know that there is no ROI or retained equity, that they are simply funding for perhaps tax purposes they might be willing to give less but at the same time you could get funding from many different sources without the worry of people trying to control the club because profits are not going to be an issue.


Just because a club is going to be nonprofit does not mean that it should be any LESS OF A CLUB. I am always aiming to have the most respected and popular club in town regardless. People might get even more satisfaction knowing that they are at a great club having a great time and the money that they are spending is going to help people.

Thanks for reading. Let me know what you think...

[ministry]

ok i'll go first. i know alot of clubs that are non-profit or should i say don't make a profit. sounds good but why not make a few bucks ?

[excellentbars]

DavidC

I believe that a NON-Profit organisation has guidlines that need to be meet in order to get that status. Like a Church or a charity....

Im not quite sure a Bar or Nightclub selling alcohol would qualify. :( But if you are so into Philanthropy why not make millions in the bar and Nightclub business, then you can be the first Warren Buffet of the Bar Business :) You would make all of us BAr and Club owners look so much better than the present image of "Smut Dealing Spirit Selling Hell Spawn Infestation of Social Evil" that right wing conservatives see us as :rolleyes:

Very Noble. DavidC

[Michael Black]

I've always beleived that if every company and wealthy individuals gave up 5-10% of their yearly income, many of the world's problems could be reduced greatly. I know, good luck, right? If you are not part of the solution, you are part of the problem as they say. But, it all starts with one person such as David C. Even if you don't get not for profit status, you can always give away your profits to any cause you choose. Smart bar and club owners should be allocating so much each year to local charities, parks, schools, police, fire, community groups, etc. even if they are for profit. With all the negativity, as Chris jokingly points out, we need to do all we can to create a better image of us in the communities where we exist. Who knows, one day when the shit hits the fan and there is an incident which causes some residents to seek your closure, all the good deeds and Karma just may save your ass.

another 2 cents,

Mike

[intensity]

I've always beleived that if every company and wealthy individuals gave up 5-10% of their yearly income, many of the world's problems could be reduced greatly.

I already give up 35% of my yearly earnings and stuff just keeps getting worse. I'm not sure about this one. But then again I'm not wealthy, so there you go.

[teenclub]

the main differnces between a non-profit corporation (not-for-profit organization) and a for-profit corporation is how the distribution of funds work.

all corporations earn money

a for profit company takes the money after expenses (profit) and can either
1) reinvest it in the company
2) distribute dividends to shareholders (owners/investors etc)

technically, a company operating at a loss should not give ANY money to investors

a not-for-profit company must
1) use all profits for the beneficiaries/members of the organiztion

at no time do shareholders get money from a not-for-profit organization...not legally anyway

only a "true" non-profit can offer deductions on contributions

in order for CONTRIBUTIONS to be considered tax-deductible, the non-profit must get 501(c) status from uncle sam (this also makes the org exempt form income tax and often property taxes)...

know that there is a LOT of paperwork, and its strictly monitored for inappropriate use of funds where the gov is concerned


there is an application and stipulations to become a "true" non-profit...I am not sure if a liqour based establishment will qualify

ALSO....since we are a high cash business, and there is a special procedure and accounting 501s have to do for cash contributions, i see it as a total nightmare from a bookkeeping perspective, and hell from an audit perspective


you might do better opening a club, and then setting up a separate trust fund, and let the club be a major contributor who also encourages others to contribute to the organization

my 2 cents

[realityrox.com]

Have we not already beaten this question to death like 2 weeks ago??