Why People Start Own Charity, Non-profits?

No personal experience.
may be your friend can tell if you start a conversation that it is wonderful what she is doing, how the though come to her, how she got motivated towards it.

1. To reach or help your surroundings/local community, they are starting may be instead of relying on distant one which is not so reachable for cause may be.

2. Want to do with a passion, not only donating money/clothes or hours of our skill set (which is great itself), but a passion towards a certain cause, it is so personal or close to their heart and want to have personal touch with it.

3. want to be a CEO of a company/ want to be their own boss/or want to be a business person (even though non-profit it involves fund raising, working with other people and so leadership etc is there so it works like a business org I think)

 

Rihana,
Speaking from my personal experience, I was instrumental in starting one such non-profit with a friend. Before starting out on our own, we did approach another non-profit in the local community and wanted to join hands with them. But they were not flexible and both our visions/goals did not align. When they were more oriented towards culture, we were more oriented towards education. We also had other limitations as we were affiliated to another big organization and we couldn't meet their provisional set-up if we joined hands with the existing organization. So we started our own few years back.

After couple of years the local organization who first refused our partnership came back to us to join hands as we had grown more than 4 times our initial start-up by then. They felt two non-profits within 5 miles radius catering to the same needs is splitting communities. But we had established ourselves by then and couldn't find a common ground to satisfy both our organization needs. So we decided to just participate in their yearly community activities. And now our community is in need of more branches

 

Instead of paying taxes, people tend to give or establish charities/not for profit trusts to earn some name and fame.

 

There are a lot of requirements from both federal and state governments on the Non Profit Organization. The organizations have to maintain records to show that their organization is following the charter that was provided while the company was established. Also the fund sources and expenditures have to be kept properly as such organizations are audited more often.

We needed to have 503(C) tax exempt code for a purpose and had to setup one ourselves.

 

just an info - in India there are over 2.9 million NGO's - the Supreme Court has called for regulations to govern these - foreign funds are flowing in abundance with no or least regulations in place.

 

@GoogleGlass ....your avatar???? good news????
Op....
It could be for tax benefit.
Sometimes people want to start charities of their own so that they have control over how the money is spent .
Sometimes for name and fame.

 

oh no - the safety pin would turn unsafe, if i wish for one

 

People start own charity or NGO for several reasons. But the most common reason is to earn an income while supporting the cause.
I have so much first hand experience with the NGOs. Every other person who has worked for a charity or NGO knows how to attract foreign funds, and how to go about it.
They start it for a cause, and then raise funds from various sources. The donors give funds based on their own mandate, but there will be always a space for the NGO to manage the funds under certain % of admin cost. On average the admin cost is 15-20% of the total fund.
That's the income of the NGO. They manage all their admin cost, salaries etc within that budget, but still there will be some commendable savings.

In Sri Lanka, the Tsunami and war has brought so many new NGOs. Everyone who started the NGO had a vision, which is so similar to the existing NGOs' vision. They could have shared their fund in the form of donation through some existing well established/well monitored NGO if their sole purpose is to support the needy. But they chose to start their own, and attract more funding from other donors with their own agenda.