In today’s world, many individuals living with disabilities strive to make a difference in their communities by pursuing meaningful causes. A frequent question we receive at the Law Offices of Christopher Le is: Can you start a nonprofit organization while receiving Social Security disability benefits?
The short answer is yes—you can—but it requires thoughtful planning to ensure your eligibility remains intact. Understanding the rules established by the Social Security Administration (SSA) is essential. Working with a disability attorney for nonprofit planning can help you make informed decisions that align with your goals and protect your benefits.
Understanding Social Security Disability Benefits: SSDI vs. SSI
Social Security disability benefits fall into two main categories—Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI)—each governed by distinct eligibility requirements.
SSDI is an insurance-based program funded by payroll taxes. To qualify, applicants must have a work history and demonstrate an inability to engage in “substantial gainful activity” (SGA) due to a long-term or terminal medical impairment. SSDI does not impose strict asset limits, offering more flexibility for those pursuing nonprofit or self-employment ventures.
SSI, on the other hand, is a need-based program for individuals with limited income and resources. It has strict financial limits—typically $2,000 in assets for individuals. Any income or resource increases, even from nonprofit involvement, can impact eligibility.
Whether you’re receiving SSDI or SSI, consulting a disability attorney for nonprofit planning can help clarify how your role in a nonprofit may affect your benefits.
What Is Substantial Gainful Activity (SGA)?
The SSA uses Substantial Gainful Activity (SGA) to determine if your work level demonstrates the ability to maintain regular employment. For 2025, the SGA threshold is $1,620 per month for non-blind individuals and $2,700 for those who are statutorily blind.
Crucially, SGA isn’t just about paid work. The SSA also considers unpaid or volunteer work that carries significant responsibility or economic value. If your nonprofit activities involve managing operations, fundraising, or administrative work, the SSA might evaluate whether those activities reflect SGA-level engagement.
For individuals on disability, these details matter. Working with a disability attorney for nonprofit planning can ensure your involvement stays within SSA guidelines.
How the SSA Evaluates Nonprofit Involvement
Nonprofits are unique because they serve public interests and don’t belong to private individuals. However, if you’re the founder, director, or key decision-maker, the SSA may treat your role similarly to self-employment.
The SSA applies several evaluation tests, including:
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Significant Services and Substantial Income Test: If your work exceeds 45 hours a month or you provide essential management services, it may count as SGA.
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Comparability Test: If your activities resemble those of a non-disabled person in a similar role, they may be considered SGA-level.
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Worth Test: Even unpaid work may be treated as SGA if the value of your services exceeds the SGA threshold.
Certain federally recognized volunteer programs—such as VISTA or Foster Grandparents—are exempt from SGA evaluations, but general volunteer work can still influence SSA assessments.
Work Incentives That Support Nonprofit Ventures
The SSA offers work incentives that allow disability recipients to test employment opportunities or pursue meaningful projects without immediately losing benefits:
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Trial Work Period (TWP): SSDI recipients can work for up to nine months and still receive full benefits, regardless of earnings.
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Extended Period of Eligibility (EPE): After TWP, there’s a 36-month safety net period where benefits continue if income remains below SGA.
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Plan to Achieve Self-Support (PASS): SSI recipients can set aside income or assets to achieve a work goal—like starting a nonprofit—without affecting eligibility.
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Expedited Reinstatement (EXR): If your benefits stop due to work but you later cannot continue, you can reinstate them within five years without reapplying.
These programs give individuals the flexibility to explore nonprofit work responsibly while maintaining benefit protection.
Key Considerations and Risks
Starting a nonprofit while receiving disability benefits requires transparency and documentation. Here are a few essential points to remember:
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Income Reporting: If the nonprofit pays you, ensure earnings stay below SGA limits and always report income to the SSA.
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SSI Asset Limits: Nonprofit assets are separate from personal assets, but personal handling of funds could affect SSI resource caps.
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Work Documentation: Even volunteer efforts can impact your case if they demonstrate a higher work capacity. Keep thorough records.
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Legal Oversight: Having a disability attorney for nonprofit planning can help structure your role appropriately, ensuring your contributions don’t jeopardize your benefits.
Proceed with Guidance from an Experienced Disability Attorney
Starting a nonprofit while on Social Security disability can be both empowering and fulfilling. It enables individuals to pursue meaningful work and contribute to their communities without necessarily sacrificing financial stability. However, the regulations surrounding SSDI, SSI, and SGA are intricate, and even small missteps can affect your eligibility.
At the Law Offices of Christopher Le, we specialize in disability law and nonprofit planning. Our team can help you understand how to establish and manage your nonprofit responsibly while maintaining compliance with SSA requirements.
If you’re considering founding a nonprofit while receiving Social Security disability benefits, contact us today. Let a trusted disability attorney for nonprofit planning guide you through the process with confidence and care.
