There are several reasons why your institution might choose to create a new nonprofit entity. Nonprofits are eligible for many different grants and other funding opportunities not accessible to for-profits. Establishing a nonprofit enables your organization to tap into these additional financial resources to support your charitable endeavors.
Furthermore, creating a nonprofit enables your organization to engage in philanthropic activities and support charitable causes aligned with your mission and values.
Creating a nonprofit provides opportunities for strategic partnerships with government agencies, foundations, and corporations that can benefit both the for-profit and nonprofit entities.