It Takes Understanding of the Non-Profit Organization

Before jumping into the logistics of how to manage a symphony, we must first identify what kind of organization we are working with.


Professional Symphony Orchestras are most often classified as groups whose purposes are to benefit the public and which are exempt from income tax under Sections 501(c)(3) or 501(c)(4) of the federal Internal Revenue Code.


Some people might interpret the term "nonprofit" incorrectly. A nonprofit organization does not exactly mean that it cannot make a profit. In fact, these organizations must have revenues that surpass expenses in order to survive. It is only called nonprofit because its PURPOSE for operating is not to make profit, but rather to benefit the public, according to federal and state law. For example, educational, scientific, literary, or charitable purposes all benefit the public under federal and state law. 

In short, a nonprofit organization is one in which: 

• its mission is to implement programs whose goal is not primarily to earn a profit
• no individual person owns shares of the corporation or interests in its property; and
• its property and any income of the corporation are not distributed to any “shareholders,” but instead are recycled into the corporation’s public benefit mission and activities.  

To give you a better understanding of the difference between a Nonprofit and a For-Profit organization, here is a table comparing the two.

Now that we are proficient in this area, we'll start learning about what kind of planning is necessary for effective profitability, specifically in this nonprofit environment. Stay tuned for my next post!

-Liz