Can I Start a Nonprofit Organization While Receiving SSDI Benefits in the USA?

Question from prophet, Can I Start a Nonprofit Organization While Receiving SSDI Benefits in the USA?

Answer from AI:

In general, starting a nonprofit organization while receiving Social Security Disability Insurance (SSDI) benefits is possible. However, it’s important to understand how the Social Security Administration (SSA) views work activity and income, as these factors can potentially affect your SSDI benefits.

Understanding SSDI and Work Activity

The SSA allows individuals receiving SSDI benefits to engage in a certain amount of work activity without affecting their benefits. This is often referred to as the “Substantial Gainful Activity” (SGA) limit. In 2021, the SGA limit is $1,310 per month for non-blind individuals. If you earn more than this amount from your work activity, the SSA may consider you no longer disabled and your SSDI benefits could be at risk.

Nonprofit Work and SSDI

In your case, you mentioned that you will not be paid for your services at the nonprofit organization. Unpaid work or volunteer work generally does not count towards the SGA limit. However, the SSA may still consider the nature and value of your work when determining whether you are engaging in SGA.

Selling Art and SSDI

The sale of your art and the students’ art could potentially be considered income. However, the SSA typically only considers net income (after expenses) for self-employment. If the income from the sale of art is used solely for the operation of the nonprofit and not for your personal benefit, it may not affect your SSDI benefits.

Steps to Take

Here are some general steps you might consider:

1. Consult with a legal professional: This is a complex issue with potential implications for your SSDI benefits. A legal professional can provide personalized advice based on your specific situation.
2. Keep detailed records: If you do start the nonprofit, keep detailed records of all income and expenses. This can help demonstrate to the SSA that the income is being used for the nonprofit and not for your personal benefit.
3. Report changes to the SSA: If you start the nonprofit or have any changes in your work activity or income, report these changes to the SSA as soon as possible.

Remember, this information is a general guide and not legal advice. Laws and regulations can change, and each person’s situation is unique. For personalized advice, consult with a legal professional. You can find more information about SSDI and work activity on the SSA’s website.