{"version":1,"type":"rich","provider_name":"Libsyn","provider_url":"https:\/\/www.libsyn.com","height":90,"width":600,"title":"145: Astronauts vs. Scuba Divers | Can You Convert a Failing Business Into a Nonprofit?","description":"If your business is struggling, can you save it by turning it into a nonprofit? Short answer: probably not. It\u2019s Jess Birken here, and I\u2019m back with my co-host Meghan tackling a super common question from business owners who think running a nonprofit might be an easier path. Real Listener Question: "I'm an instructor at a small figure skating school. It's been around for 30 years, but we're not making ends meet. The current owner doesn\u2019t want to run it anymore. Can we convert it into a nonprofit so we don\u2019t have to make a profit or have an owner?" We hear this one a lot. A business isn\u2019t working, and people assume nonprofit status will solve everything. I mean, it\u2019s right in the name \u2013 you don\u2019t have to make a profit, right?! Meghan and I walk through why this logic doesn\u2019t hold up, the realities of converting to nonprofit status (hint: you can\u2019t), and what it really takes to start and sustain a nonprofit. If you\u2019re dreaming about skipping taxes and raking in grants, this episode will help you get real about what actually works. What You'll Learn: Why you can\u2019t convert a for-profit business into a nonprofit What nonprofit status actually means and why it\u2019s not a business model Why fundraising isn\u2019t a magic solution How conflicts of interest complicate nonprofit governance What to do before starting a nonprofit if you're serious about it Why starting a nonprofit requires a plan, not just a tax filing What to think about if your org isn\u2019t financially viable right now Bottom line: Nonprofit status isn\u2019t a quick fix. If your current business model isn\u2019t working, you need to solve that problem first \u2014 not just switch IRS categories and hope for the best. Resources from this Episode \u2022        Listen to Episode 89 to learn about conflicts of interest: https:\/\/birkenlaw.com\/charity-therapy-podcast\/ct089\/ \u2022        Check out my friend Steve Boland's podcast at Next In Nonprofits: https:\/\/www.nextinnonprofits.com\/podcast\/ \u2022        Previous Episode: Breaking Down the IRS Changes for 501(c)(3) Status for Churches: https:\/\/birkenlaw.com\/charity-therapy-podcast\/ct144\/ \u2022        Episode Transcript: https:\/\/birkenlaw.com\/wp-content\/uploads\/2025\/08\/CT145_Transcript.pdf Connect with Us \u2022        Jess Birken: https:\/\/www.linkedin.com\/in\/jessbirken\/ \u2022        Meghan Heitkamp: https:\/\/www.linkedin.com\/in\/meghan-heitkamp-829254115\/ Listen & Engage \u2022        Listen on Apple Podcasts | Spotify | YouTube | Amazon Music \u2022        Rate & Review on Apple Podcasts: Click "Ratings and Reviews" then "Write a Review" \u2022        Send us your nonprofit questions: https:\/\/birkenlaw.com\/podcast\/#podcast-story   Stay Connected \u2022        Sign up for the Birken Law Email list: https:\/\/birkenlaw.com\/signup\/   \u2022        Follow us on Facebook, Instagram, Twitter   ","author_name":"Charity Therapy","author_url":"https:\/\/charitytherapy.show\/beon","html":"