Reviewed by David Kindness
Fact checked by David Rubin

If you haven’t gotten around to writing your last will and testament, you should be aware that there are three systems of inheritance laws in the United States. It’s important to know which one affects your state—and your assets after your death.

Key Takeaways

• There are three systems in the U.S. governing how individuals receive assets from a deceased family member.
• The three systems are community property, elective community property, and common law.
• Most states are governed by common law.

Understanding Inheritance Laws

Inheritance laws are statutes and regulations that determine how individuals receive assets from the estate of a deceased family member. These laws ensure that beneficiaries can acquire some form of inheritance in the event that a will was never written or doesn’t cover all of the deceased person’s assets. In some cases, these laws also provide certain relatives with the right to claim an inheritance, which they can exercise regardless of the actual terms of the deceased’s will.

In the context discussed here, inheritance laws typically pertain to the spouse/partner of the deceased individual. While there are fewer rules regarding children, it is common for them to be able to receive a share of a decedent’s property.

Most states do have laws to protect against accidental disinheritance, should a will predate the birth of a child and fail to be revised before the death of the relative. That way, if property isn’t left for one child but is left for their siblings, it’s assumed this omission was accidental and the child in question will be given an equal share. In some jurisdictions, these laws can also apply to grandchildren.

When an individual passes away without a will, their estate is considered “in intestacy.” This means that a court-appointed administrator will compile all of the deceased’s assets, pay any debts or taxes, and distribute what remains to the beneficiaries based on the laws of their state. A will may also be considered intestate if it is declared invalid for a variety of reasons. In either case, only the probate court with jurisdiction over the estate is responsible for distributing the deceased’s assets.

State-by-State Breakdown

Make sure you know which of these three systems of inheritance law governs your state. Here’s how each one works.

Community Property

The first type of inheritance law is what’s known as community property. Under this system, each spouse automatically owns half of what they each earned while married. So when one spouse dies, half of their estate automatically goes to their partner, while the latter half may be distributed to other beneficiaries.

Of course, this is only a minimum requirement. If a will has been written, then the deceased had the option of reserving more than half of their assets for their spouse.

Important

The nine community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.

For the purposes of inheritance, community property laws consider income received from employment, property bought during the marriage (with income from work), and separate property that a spouse gives to the marriage (and therefore will be obliged to share with their spouse) as being “shared” between partners (i.e., going toward each of their “halves” should the other die).

Property that doesn’t apply to this policy includes anything acquired prior to the marriage, inheritances or gifts, and anything covered under an agreement between the spouses that’s to be kept separate from the marriage.

Common Law

38 of the remaining 41 states operate under common law policies. In the context of inheritance, spouses living in these states aren’t automatically entitled to half of the assets obtained throughout the marriage.

That said, many states will still give the surviving spouse the right to claim a third or even half of the deceased’s estate, also regardless of the terms of the will. However, these provisions only apply if the surviving spouse petitions the court for their share. Under common law, the ownership of property is determined by the name on the title of the property or by whoever’s income was used to purchase it.

Elective Community Property

Three states don’t fit neatly into either of these two categories. Alaska, for instance, adopted an elective community property system in 1998. It’s still effectively a common law state, but a spouse may also have an automatic right to an inheritance, so long as they sign a written agreement with their partner or create a community property trust together.

Tennessee established a similar law in 2010, while Kentucky adopted its elective community property system in 2020. In each state, both residents and nonresidents may create community property through a community property trust.

How Many States Use the Community Property System for Inheritance?

There are nine community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.

How Many States Use Common Law for Inheritance?

Inheritance is governed by common law in 38 states.

How Many States Use an Elective Community Property System for Inheritance?

In three states, inheritance is governed by an elective community property system: Alaska, Kentucky, and Tennessee.

The Bottom Line

The last thing anyone would want to deal with while mourning is complications in the inheritance process. As such, even though it isn’t fun to think about, it’s crucial to ensure that you have your affairs in order as soon as possible to avoid confusion and make sure that your will can be carried out as written. To that end, make certain you understand the inheritance laws of your state when planning for your estate. That will give you the best chance that your plan for your assets won’t be overridden.

Fact checked by Suzanne Kvilhaug

You’ve started a new job and your company offers a 401(k) plan, an employer-sponsored retirement savings plan. This is a great opportunity to save for retirement. Here are the steps you need to take to get your 401(k) off the ground.

Key Takeaways

• A 401(k) plan is a retirement savings plan sponsored by your employer.
• In 2025, most workers can contribute up to $23,500 to their 401(k) plans, and workers older than 50 can contribute an extra $7,500.
• As a general guideline, it’s a good idea to contribute 10% to 15% of your salary if possible.
• Some employers offer a contribution match, which can boost your retirement savings.
• Choose your investments wisely—stock funds are riskier but offer more growth, while bond funds are more conservative.

Step 1: Get Enrolled

You may not need to do anything to get on your employer’s 401(k) plan. “Employers these days tend to auto-enroll new employees into the 401(k) plan, while giving them an option to actively opt out if they so choose,” says Carla Adams, founder and financial advisor at Ametrine Wealth.

If you are not auto-enrolled, you’ll need to take a few steps to sign up.

“This usually involves filling out forms, either online or on paper. You’ll need to provide basic personal information such as name, address, date of birth, Social Security number, and beneficiary,” says Carl Holubowich, certified financial planner at Armstrong Fleming & Moore. “Don’t delay signing up, as the sooner you start contributing, the more time your money has to grow through compound interest.”

You may also have a choice of plans. Many companies allow employees to choose between a traditional 401(k) and a Roth 401(k). With a traditional 401(k), you make contributions using pre-tax dollars and lower your taxable income in the current year. Contributions to a Roth 401(k) are taxed, but your withdrawals in retirement are tax-free.

“Keep in mind you don’t have to choose 100% pretax or Roth contribution, you can split them between both options,” Holubowlich says.

Step 2: Choose Your Contribution Amount

The next step is to decide how much you want to contribute each pay period. You can invest a percentage of each paycheck or a fixed dollar amount. Take a close look at your current budget and decide how much of your salary you can save.

“Start with a percentage you are comfortable with, even if it’s small, and increase it over time,” Holubowich says. “The good thing about selecting a percentage rather than a dollar amount is the amount you contribute will increase whenever you receive a bump up in salary.”

But the more you can save, the more you will be able to enjoy in retirement. “Ideally you want to be contributing 10 (to) 15% of your pay to your 401(k), though this number can include any employer matching contributions,” Adams says.

If your employer offers a matching contribution, that’s another opportunity to grow your savings. Let’s say an employer offers a 3% matching contribution. When you contribute 3% of your salary to a 401(k) your employer will contribute 3% of your salary as well, doubling your retirement savings.

Important

For tax year 2025, the maximum contribution for most workers is $23,500. If you are over age 50, you can make an additional catch-up contribution of $7,500 for $31,000 total.

Step 3: Choose Your Investments

A 401(k) plan includes a variety of investments, including stock funds, bonds, and target date funds. The investments you choose will depend on how close you are to retirement and your capacity for handling volatility in your investments.

“Employees are typically automatically set up to be invested in a target date fund, which is a great set-it-and-forget-it investment option that I believe makes sense for most people,” Adams says. 

“However, you do have the opportunity to choose from a whole list of investment options. Younger employees should ideally be invested heavily in stock funds, whereas it is typically more appropriate for employees closer to retirement to be invested in a mix of both stock and bond funds.” 

The investments in target-date funds become more conservative as the investor’s target retirement date approaches. If this type of fund sounds too conservative, you have options.

 “If you have a higher risk tolerance and want the convenience of a target date fund, you can combat the conservative investment allocation by selecting a target date 5 (to) 15 years later than your actual target retirement date,” advises Samantha Mockford, a certified financial planner at Citrine Capital.

You should also consider the expense ratio—the annual fee each fund charges to pay for management and administration. “Checking the expense ratio on the investment options is key and often overlooked,” Adams says. “Opting for lower cost funds will keep more money in your pocket and benefit you greatly over the long term.”

Take the time to review your 401(k) investments a couple of times a year.

“Some plans automatically rebalance your portfolio, but others require you to adjust it yourself,” says John Abernethy, director of financial planning at Together Planning. “Check in once or twice a year to ensure your investments are still aligned with your goals and, if needed, rebalance or increase your contributions.”

The Bottom Line

Enrolling in a 401(k) plan is easy, and many employers automatically enroll their employees. Try to contribute as much as your budget allows, especially if you can get a matching contribution from your employer. The more you save, the more you will have to enjoy your retirement.

Fact checked by Suzanne Kvilhaug

Supplemental Security Income (SSI) is a federal program administered by the Social Security Administration to help certain individuals who suffer from financial need. SSI was created in January 1974 to replace and consolidate three similar assistance programs. It provides relief to those who are blind, disabled, or age 65 and older and have minimal income and resources.

SSI is available for individuals who don’t earn more than $2,019 from work each month. (The cap increases if you’re married or applying for your child or children, or decreases if you’re disabled.) The rules for qualifying for this assistance can be complex.

Key Takeaways

• Supplemental Security Income (SSI) provides relief to those who are blind, disabled, or age 65 and older and have limited income and resources.
• SSI beneficiaries receive funds from the government to help them pay for their basic living expenses.
• The cap on earned income from working is $2,019 per individual per month as of 2025, but this increases if you’re married or you’re applying for your children or child, or decreases if you’re disabled.
• Some income isn’t included in this cap.
• Resources are limited to $2,000 for individuals and $3,000 for couples.

Understanding Supplemental Security Income (SSI)

In order to qualify for SSI monthly benefits, an individual must have ‘limited income and resources’, according to the Social Security Administration. Additionally, an individual must be blind, disabled, or age 65 or older to qualify. Only one of the conditions is required in tandem with the income and resource limits.

The Social Security Administration defines a disability as a “medical condition that keeps them from performing substantial gainful activity, which is expected to last one year or result in death.” For children, a disability is a considered a condition that “severely limits daily activity” . Disabled and/or blind children qualify for SSI based on their parents’ income and resource levels.

Income Limits for SSI Eligibility

SSI income limits are strict. The cap on income earned from working is $2,019 per individual per month as of 2025. However, the cap is higher if you’re married or you’re applying for your children or child. For disabled individuals, the income threshold is $1,550, which means you’ll need to prove you earned less than that in the month you apply.

“Income is divided into four categories by the Social Security Administration,” says Arron Bennett, a strategic finance expert and founder/CEO of Bennett Financials. “Earned income (wages or self-employment income), unearned income (Social Security benefits, pensions, or gifts), in-kind support (food or housing provided for free), and deemed income (for children, the income of a spouse or parent).”

A portion of your spouse’s income will be included with yours if you’re married. Some of your parents’ income will be calculated into your total if you’re younger than age 18. Disability and unemployment benefits are included in the income totals.

“The specific financial situation will determine eligibility and benefit amounts,” Bennett says.

Important

Your state of residence may affect these limits to an extent. Call the Social Security Administration at 1-800-772-1213 to inquire about any additional restrictions or flexibility that might apply where you live.

Exclusions From Income

Not all income is included in these limits. Some exclusions apply:

• The first $20 of monthly income
• The first $65 a month of earned income from working, plus half of any amount over $65
• Supplemental Nutrition Assistance Program (SNAP) benefits
• Most home energy assistance benefits
• Some wages and scholarships received by students

The Social Security Administration provides an online tool that you can use to enter your personal information and find out if you qualify.

Resource Limits for SSI Eligibility

Your income isn’t the only qualifying consideration for SSI—the Social Security Administration evaluates your resources, too.

“There are resource limits: $2,000 for an individual and $3,000 for a couple,” Bennett says. “This includes cash, bank accounts, stocks, bonds, and other such assets. However, some assets are excluded from the list: the primary residence, one vehicle, household goods, personal effects, and burial expenses up to a certain limit.”

The Social Security Administration won’t count burial funds you have saved up as a resource as long as those funds don’t exceed $1,500 as of 2025. This doubles to $3,000 if you’re married: $1,500 each for you and your spouse. Life insurance policies can be excluded as well, but only up to a face value of $1,500. You can add $2,000 if you’re applying for a child.

SSI Work Incentives

The Social Security Administration doesn’t discourage recipients from working. It provides several incentive programs for those who do.

Student Earned Income Exclusion (SEIE)

The Student Earned Income Exclusion (SEIE) allows blind or disabled students to exclude $2,350 per month from their incomes up to a total of $9,460 per year as of 2025.

“This means that students can work part-time or even accept internships and receive SSI benefits without having to worry about losing them,” Bennett says.

Ticket to Work

This program is designed to help individuals find work under the terms of the Ticket to Work and Work Incentives Improvement Act of 1999. You can receive employment services from an approved service provider at no charge.

The Social Security Administration will pause their medical disability reviews while you’re participating in the program. These reviews are normally performed on an ongoing basis to determine whether your condition has improved.

Plan to Achieve Self-Support (PASS)

“Another important program is the Plan to Achieve Self-Support (PASS),” Bennett says. “It enables SSI beneficiaries to set aside money toward education or job training only. PASS funds aren’t considered as income, so an individual can use the money to enroll in vocational activities and still be eligible for SSI.”

Blind Work Expenses (BWE)

Another important policy is Blind Work Expenses (BWE). “It allows certain work-related expenses to be deducted before the countable income is determined,” Bennett says. “Some of these costs can include transportation to and from work, guide dog and other orientation and mobility expenses, assistive technology, and even some meals that are consumed at work. These deductions help the blind person work while maintaining necessary financial support.”

The expense doesn’t have to be related to the individual’s blindness to qualify, according to the Social Security Administration.

Impairment-Related Work Expenses (IRWE)

This income exemption is similar to the exemption provided to blind individuals. Wages that are used to purchase or pay for certain items or services that allow you to work are exempt from income calculations.

The Social Security Administration provides these examples of the types of expenses that can be deducted from an individual’s earned income:

• Co-pays
• Medications
• Counseling services
• Car modifications
• Assistive technology that people with disabilities use for employment-related purposes such as software applications and computer support services
• Special tools that have been designed to accommodate the person’s impairment or attendant care services

Other Requirements

If you’re age 65 or older and haven’t yet applied for Social Security retirement benefits, your SSI application may also serve as an application for retirement benefits. However, note that there’s different eligibility criteria for Social Security retirement benefits and SSI.

You must be a U.S. citizen or national to be eligible, although some noncitizens in an alien classification granted by the Department of Homeland Security can qualify as well. You must reside in a U.S. state, the District of Columbia, or the Northern Mariana Islands. This excludes those who live in Guam, Puerto Rico, American Samoa, or the U.S. Virgin Islands. You can’t leave the United States for 30 or more consecutive days or a full calendar month.

How to Apply for SSI

The Social Security Administration provides an application form on its website. You can also visit your local Social Security office, but be sure to call ahead for an appointment.

You must receive your SSI benefit payments electronically if you’re approved.

The Bottom Line

Qualifying for SSI can be a bit of a challenge, and it begins with understanding all these rules.

“The income and resource limits that are used to determine eligibility help to ensure that it goes to those who are most in need,” Bennett says. “It can provide a cushion of comfort if you’re blind, disabled, or age 65 or older with limited income and resources.”

Reviewed by Somer Anderson
Fact checked by Suzanne Kvilhaug

If you’ve never bought a condominium (condo), you may be surprised at all of the issues you need to consider. After all, buying a condo is not the same as buying a house. You’ll likely have adjoining walls with your neighbors, as well as other physical elements that are different from a freestanding home.

Condos have their benefits, but there are also drawbacks. Here’s what you need to know.

Key Takeaways

• Before buying a condo, it’s important to understand the differences between living in a condo versus a single-family home and to determine if the condo lifestyle is right for you.
• Condos are usually less expensive than single-family homes and have lower maintenance requirements, making them good options for homebuyers on a budget or people looking to downsize.
• Loans can be harder to get for a condo because some lenders have strict requirements regarding owner occupancy and loan-to-value ratios.
• Condo owners will have to abide by the covenants, conditions, and restrictions (CC&Rs) of the complex or risk being fined, forced to comply, or sued.
• Condo owners pay monthly fees that cover the cost for ongoing maintenance and repairs of common areas within the complex, such as the grounds, pools, lobbies, elevators, and recreation rooms.

Who Should Own a Condo?

One of the first things you need to ask yourself is, “Are you the condo type?” What exactly does that mean? Being a city-dweller, for one. Many condos are located in urban settings. Condos are springing up in urban downtowns, and some are even building items of convenience right into the development, including grocery stores, bank branches, and other businesses. With that convenience may come more noise and congestion.

If you are thinking about a certain location for a potential condo purchase, check the area out at different times of the day and night to see how loud or brightly lit it is. If noise or light is an issue for you, this may not be the right choice.

One of the things that comes with condo ownership is the Homeowners Association (HOA). It sets out a declaration of covenants, conditions, and restrictions (CC&Rs) that lists things that you, as the condo owner, must comply with in order to live there. If you find that you won’t be able to abide by the CC&Rs, condo life might not be for you. Non-compliance could mean you could be fined, forced to comply, or even sued.

Condos may be a suitable choice for a certain type of person, like a first-time homeowner who cannot afford a more expensive single-family home. Condos also offer the advantage of low maintenance. This can be an attractive feature to those who are looking for less of a home to manage. Condos can also be an attractive choice for the person who wants to be centrally located in a big city.

Loan Issues

Purchasing a condo may be more difficult than purchasing a house. Lenders are very careful when giving out loans for this type of residence. They usually require that a certain percentage of the units have people living in them (that is, “owner-occupied“).

Another restriction may be how many condos are allowed to be owned by one investor. Usually, lenders do not want one person to own more than 10% of the units in a building. Many times, lenders will also have regulations relating to the building’s occupancy rate. Some lenders require at least 90% of the units to be sold before offering any financing.

Warning

Mortgage lending discrimination is illegal. If you think you’ve been discriminated against based on race, religion, sex, marital status, use of public assistance, national origin, disability, or age, there are steps you can take. One such step is to file a report with the Consumer Financial Protection Bureau.

Lenders may also have tougher loan-to-value (LTV) ratios and restrictions for those buying condos. An LTV ratio is how much the condo is worth versus how much is owed on it. For example, if you put 20% down on a home, your LTV would be 80%.

Federal Housing Administration (FHA)-backed mortgages for condos do exist, for up to 30 years. They’re known as Section 234(c) loans. While the terms for borrowers are similar to those on house loans, there are many condo restrictions. For example, the building must have at least five units.

Other Costs

There may be other costs involved with owning a condo. Even though the HOA offers insurance, you may need to carry additional homeowners’ coverage as well. Carefully read all documentation to be sure that the insurance offered by the HOA doesn’t shift risk to you to maintain lower premiums.

Also, be aware that you’ll need to pay a monthly condominium fee. All owners in a condominium complex pay fees to cover ongoing maintenance and repairs of the common areas within the complex. Community areas such as parking lots and shared outdoor green spaces are known as limited common elements.

Avoiding Condos With Problems

One of the most important things you can do to protect yourself when buying a condo is to research the HOA and sit in on an HOA meeting. You may also want to talk to the neighbors to see if they are happy with how the condo is managed. Review the bylaws to determine what is covered by the HOA. You can also ask to obtain the minutes from recent board and member meetings, and find out how much the HOA dues have increased in the past few years.

Another area to research is the board’s litigation history, both for taxes and other general issues. You may find that there are lawsuits pending that you may not want to become part of, should you purchase. Some condo associations have been forced into bankruptcy for unpaid HOA dues. If they fall behind on receiving dues, lenders may also stop offering financing on the units, which could affect resale values.

Review financial records for delinquencies and reserve funds. A good association should have at least 25% of gross income in reserve for emergencies and repairs. If they run out of money, you may get hit with an assessment. Also, be sure to check out recent property tax assessments. If your condo sale price is low, but the tax assessment is high, you may be in store for a higher tax bill than you had anticipated. Be sure that taxes are in line with the true value of the property.

How Much Are Condo Fees?

Fees vary from city to city, and from building to building. The average cost of condo fees in the United States is about $350 per month, according to Condo Manager USA.

What Do Condo Fees Cover?

Condo fees typically cover maintenance of areas such as lobbies, elevators, pools, recreation rooms, parking lots, and the grounds within the complex. Some funds might be held in reserve to pay for large repairs, such as a roof replacement or exterior painting. Condo fees vary greatly depending on the size of the complex and the amenities offered.

What Do Most Condos Cost?

The median sales price for condos was $361,200 in 2024, according to the National Association of Realtors.

The Bottom Line

Condominiums can be a good investment for the right buyer in the right location, though they can be harder to buy and sell than a detached house. Before purchasing a condo, be sure to do your due diligence and check out the HOA, CC&Rs, and any tax and insurance situations.

Also, be sure to get a real estate agent and a loan officer who have a lot of condo sales experience, as the issues surrounding such a purchase are different than those with a single-family home.

Fact checked by Vikki Velasquez

Retirement is a chapter of newfound freedom, a time to relish the rewards of a lifetime’s work. While financial planning often centers on meticulous savings and strategic timelines, where you choose to retire can have a big impact on your financial well-being. Alaska, the Last Frontier, presents a compelling and often unexpected retirement destination, offering a unique blend of financial incentives and an unparalleled lifestyle. 

Alaska is worth considering for those seeking a retirement that combines financial security with a deep connection to nature. The state’s unique tax structure, senior assistance programs, affordable housing options and low-cost, high-quality lifestyle create an environment where retirees could thrive. 

Key Takeaways

• Alaska has no state income or sales tax, which significantly increases retirees’ disposable income.
• The Permanent Fund Dividend (PFD) provides a consistent annual financial boost.
• Property tax exemptions and affordable housing options reduce living expenses.
• Comprehensive healthcare access through Medicare and Medicaid and senior assistance programs enhance quality of life.
• Alaska’s outdoor lifestyle and community support provide retirees a fulfilling and low-cost lifestyle.

No State Income Tax or Sales Tax: Keep More of Your Money

Income Tax Savings

Tax savings is one of the most significant financial perks of retiring in Alaska. Since the state has no state income tax, retirees’ income from pensions, Social Security, or investments isn’t subject to state taxation. According to the Tax Foundation, Alaska is one of only eight states that does not impose a state income tax.

No Statewide Sales Tax

With no state sales tax, retirees pay less for everyday expenses, freeing up more of their income for savings or other financial goals. Everything from groceries to clothing and other essential items could be more affordable, allowing retirees to manage their budgets better.

The Permanent Fund Dividend (PFD): An Annual Financial Boost

The Permanent Fund Dividend (PFD) is a unique financial benefit for Alaskan residents. Derived from the state’s oil revenue and managed by the Alaska Permanent Fund Corporation, the PFD provides an annual payment to eligible residents living in Alaska for a full calendar year. While the payout amount varies, it consistently provides a valuable financial boost.

How Much Can Retirees Expect?

Payouts vary each year depending on the fund’s performance. Recent payouts have ranged from several hundred to over $3,000. According to the Alaska Department of Revenue, the 2024 dividend amount was $1,702, providing a nice boost for retirees on fixed incomes.

How the PFD Helps Retirees

The PFD can supplement Social Security and pension income, providing extra funds for essential expenses, travel, or savings, helping offset costs such as heating and groceries.

Affordable Housing and Lower Property Costs

Cost-Effective Homeownership

Property prices in Alaska vary depending on location. Many areas offer relatively affordable home ownership compared to other scenic retirement destinations. In the Matanuska-Susitna Valley near Anchorage, median home prices are often lower than comparable coastal retirement towns in California or Oregon, while still providing stunning scenery. Smaller cities and rural areas usually have lower property values, making it possible for retirees to purchase homes within their budgets.

Property Tax Exemptions for Seniors

Retirees who own their home receive special tax exemptions, further reducing housing costs. Alaska exempts the first $150,000 of assessed value for all senior citizens. The average assessed value exempted from taxes for senior citizens came to a tax exemption of $1,965 for 2017, per the Alaska Department of Commerce. Still, there may be variations by municipality or specific location, so check local borough websites for current information. 

Renting vs. Buying in Alaska

For retirees, deciding whether to rent or buy in Alaska requires considering several factors, including long-term financial goals, location, and flexibility. Renting offers more mobility and less commitment, while buying provides financial stability and the chance to build equity over time. Housing costs vary widely across the state, so the best option depends on your location and needs.

Lower Healthcare Costs and Senior Benefits

Medicare and Medicaid Support 

Alaskan retirees can access affordable healthcare through Medicare and Medicaid programs, which provide comprehensive coverage for medical services, prescriptions, and long-term care.

Alaska seniors have access to standard Medicare programs and four Medicare Savings Programs that assist with deductibles and copayments. Alaska’s Medicaid program provides coverage for extended long-term care, prescription drugs, eyeglasses, and hearing aids.

Senior Assistance Programs

Additional state-funded programs help with healthcare, heating, and food costs. The Senior Benefits Payment Program assists qualifying Alaskans over 65 with low to moderate income. The Alaska Long Term Care Alternatives (ALI) waiver covers care services to help individuals remain in their homes.

Access to Medical Facilities 

Major cities like Anchorage and Fairbanks have hospitals that offer quality care, while rural areas rely on smaller clinics and telehealth services. Telemedicine options are becoming more widely available to ensure that all Alaskan residents have access to necessary medical care.

A Low-Cost, High-Quality Lifestyle

Free & Low-Cost Outdoor Activities 

Enjoying Alaska’s natural beauty allows retirees to make the most of retirement on a budget. Free activities such as hiking, fishing, and wildlife viewing provide an active lifestyle without breaking the bank. Accessible areas include the Tony Knowles Coastal Trail and Creamer’s Field Migratory Waterfowl Refuge, among many Alaska State Parks that offer accessible trails and facilities.

Small-Town Living with Community Support 

Tight-knit Alaskan communities provide a built-in social network, crucial for senior wellbeing, reducing isolation or loneliness.

Research from the National Institute on Aging found a link between social connection and physical and mental health.

Self-Sufficient Living and Local Resources 

Opportunities for gardening, fishing, and local food sourcing help retirees reduce expenses. According to the Alaska Department of Fish and Game, Alaska residents 60 years or older are eligible for free fishing and hunting licenses. The University of Alaska Cooperative Extension Service offers resources for seniors who want to grow their own food.

Considerations Before Making the Move

Managing the Cost of Utilities & Groceries 

While Alaska offers financial advantages, retirees should prepare for higher utility costs, particularly heating during winter. According to the U.S. Energy Information Administration, Alaska residents’ average monthly electricity bill in 2023 was $137.

Alaska’s remote location often results in higher prices for groceries due to shipping costs.

Adjusting to the Climate & Daylight Cycles 

Alaska’s climate and daylight cycles can be challenging, with long, dark winters and extended daylight hours in summer. Retirees should consider their ability to adapt to these conditions.

Proximity to Healthcare & Family

Access to healthcare and proximity to family should be carefully considered. Travel costs for visiting loved ones can be significant. Healthcare access varies across Alaska, with urban centers offering more comprehensive services than rural areas. For those considering rural regions, the Alaska Native Tribal Health Consortium (ANTHC) has more information on rural healthcare.

The Bottom Line

Alaska offers a unique combination of financial incentives and a high-quality lifestyle. The absence of state income and sales taxes, the PFD, and various senior benefits can significantly enhance a retiree’s economic well-being.

Before making the move, retirees should consider:

• Can I adapt to Alaska’s climate and daylight cycles?
• Am I comfortable with the potential for higher utility and grocery costs?
• How important is access to healthcare and proximity to family?
• Do I enjoy outdoor activities and a self-sufficient lifestyle?

By carefully weighing these factors, retirees can determine whether Alaska is the right choice for their retirement.

Fact checked by Suzanne Kvilhaug

If you are a young woman and thinking about having a child later in life, you may wish to freeze your eggs. Understanding the costs of this procedure and your options for payment are important steps in your fertility journey.

Key Takeaways

• Egg freezing is an expensive process, costing as much as $15,000 per cycle with storage costs of around $1,000 per year.
• Check to see if your health insurance will cover a portion of the egg-freezing costs, including medication.
• Not many women can afford the full costs of freezing their eggs and pay by credit card or personal loan. If you pay by loan, shop around for the best interest rate, and make room in your budget for a loan payment.

“More and more young women are looking to egg freezing as a way to preserve their childbearing years and have peace of mind to have kids on their own terms and their own timelines,” says Laura McDonald, co-founder of Flora Fertility. “This process requires medications and at-home injections to produce mature eggs, which are then retrieved and can be stored for future access.”

Costs of Freezing Your Eggs

Freezing your eggs could cost as much as $15,000 for each cycle that you participate. So this is not a task to take on lightly.

“Typical costs range from $5,000 to $15,000 per cycle, not including the storage fees for the eggs. Some programs require a lower amount for the procedure and then bill the medication separately. Others offer a comprehensive cost for the cycle,” says Jennifer Hintzsche, founder of PherDal Fertility Science.

Find out how much you will be charged for egg freezing prior to having the procedure. You’ll need to budget accordingly.

“It’s essential to understand how the fees are charged before you start to avoid getting hit with unexpected costs,” Hintzsche says.

She went on to say that agreeing to donate a portion of your eggs to other people is one way to lower the costs associated with freezing your eggs. But there are ramifications to consider.

“There could be a scenario where you donate your eggs at 25 to pay for your own procedure,” Hintzsche says. “If you decide to have kids at 35, your child might have up to 10 biological siblings ranging from newborn to 10 years old. With growing DNA databases like Ancestry or the troubled 23andMe, these children might be able to identify you or your relatives and family.”

Costs of Storing Your Eggs

After you freeze your eggs, you’ll need to store them until you are ready to use them. These storage costs could last several years depending on your time frame for having a family. Don’t forget to factor storage costs into your budget.

“Storage for the eggs also varies but is typically around $1,000 a year for as long as you store them,” Hintzsche says.

Costs of Medication

When you are comparing costs between fertility clinics, be sure to check out the medication costs. Is the medication included in the costs for egg freezing, or is it billed as a separate cost? You’ll need to know to make a clear comparison of prices.

“The medications used for the stimulation are quite expensive, and some clinics include the cost in their sticker price while others do not,” says Sahar Wertheimer, a board-certified reproductive endocrinologist at HRC Fertility in Beverly Hills, California.

The medication costs associated with egg freezing range from $3,000 to $5,000, according to TJ Farnsworth, founder of Inception Fertility.

Reach Out to Your Insurance Company

Before moving forward with freezing your eggs, check to see if your health insurance will cover any of the costs. You may get partial costs of the egg freezing paid by your insurance company, which will help to lower costs.

“Some insurance policies might cover part of the costs of the procedure or medication, so it’s important to find out if your insurance can help cover some of the costs,” Hintzsche says.

Age Makes a Difference

Younger women who freeze their eggs have good outcomes with the procedure.

“Age matters most, and freezing eggs at a younger age result in better ‘bang for your buck,’ meaning better egg quality and quantity for the same cycle price,” Wertheimer says. “Commonly, patients need more than one cycle to achieve statistics of success that they are happy with.”

Other Ways to Pay

Women are turning to personal loans and credit cards to pay for the costs of freezing their eggs. Depending on the interest rates charged, both can be expensive ways to pay for egg freezing, egg storage, and medication.

“Currently, only 2% of Americans can afford these expenses outright, causing nearly 80% of treatments to be financed through credit cards or high-interest loans, exponentially increasing the cost,” McDonald says.

The Bottom Line

Choosing to freeze your eggs is a big decision that comes with a big price tag. If you decide freezing your eggs is right for you, you’ll want to review the costs carefully. How much does the egg freezing, egg storage, and medication cost? Check with your insurance company about covering some of the costs.

How will you be able to pay? Will you pay out of your savings or by donating a portion of your eggs? Many women turn to credit cards and personal loans. If you do pay by credit card, opt for a card with a low interest rate and a roomy credit line, and pay more than the minimum payment. To get a good rate on a personal loan, it is important to shop around. Borrow the minimum that you need, and make a plan for including loan payments in your budget.

Fact checked by Suzanne Kvilhaug

Investing money in a 401(k) plan is a popular way to save money for retirement, but it’s not free. You’ll be charged several different types of fees in a 401(k) plan, and these fees impact your investment over time. Being aware of these fees is the first step to making your 401(k) plan more profitable.

Key Takeaways

• You pay several different kinds of fees to participate in a 401(k) plan, including administration, investment, and recordkeeping fees.
• Look in the Participant Fee Disclosure to find out the specifics of your 401(k) plan’s fees. If you are not sure where to find this disclosure, ask your 401(k) plan representative.
• Choosing lower-cost investments such as index funds will help to lower your 401(k) fees, but make sure these cheaper investments align with your investment strategy.

Types of Fees in 401(k) Plans

“There are a variety of fees, including recordkeeping, administration, investment, and financial advice. There might also be transaction-specific fees, (for example) if you take a loan from the plan,”
says Justin Pritchard, a certified financial planner at Approach Financial Planning.

Depending on your 401(k) plan, you may not pay the full costs of each of these fees.

“Employers often pay some or all of the recordkeeping and administration costs. For people in large plans, they might only see investment-related costs. Investment costs are often in the form of a mutual fund’s expense ratio,” Pritchard says. “Financial advice fees might go to an advisor who helps with the plan, or they might cover optional investment management services within the plan.”

Costs of 401(k) Fees

Larger 401(k) plans often have lower fees. In contrast, smaller companies may have pricier 401(k) plans.

“The fees vary widely. Typically, larger plans tend to have the lowest fees. Think of large companies, universities, and hospital systems. A small company or nonprofit might have significantly higher fees. However, small companies can certainly get inexpensive plans,” Pritchard says.”

How much are the fees?

According to BrightScope, in 2022, the average total cost for 401(k) plans was 0.85%. And the average 401(k) plan participant had to pay a total 401(k) plan cost of 0.52%.

Some small plans have costs much higher than the average fee. According to the “401k Averages Book,” a small plan with 50 participants and $500,000 in assets had total plan costs of 2.31%.

Investment fees also vary within a 401(k) plan.

“For investment costs, index funds might cost less than 0.10%, while other active investments might cost more than one percent,” Pritchard says.

Where to Find 401(k) Fees

You can find your 401(k) plan’s fees in several locations.

“One step is to look at your transactions and see if there are any deductions for fees. You should also have a Participant Fee Disclosure document, also known as 404(a)(5), which is supposed to detail the fees in your plan. Look for that when logged in to your account, or ask your plan representative for a copy,” Pritchard says.

It might be difficult to read.

“Unfortunately, those documents don’t always explain things clearly, and they might not show all of the recordkeeping and administration fees you’re paying. However, they often have information about investment expenses,” Pritchard says.

How Lower 401(k) Fees Impact Your Investment

Over 20 years, you could save significant money with a 401(k) plan by lowering the plan’s fees.

“If you contribute $10,000 annually to your 401(k) for 20 years, a 0.5% fee reduction would save you approximately $10,000 over that period, assuming a consistent average annual rate of return,” says Michael Murray, president of Peabody Wealth Advisors.

So, choose the investments in your 401(k) plan wisely. You can expect to pay higher 401(k) fees on managed mutual funds and annuities.

“Typically, the higher fees are on actively managed mutual funds, especially areas where research is more expensive–emerging markets, international, and sector funds,” Murray says. “A recent addition to some 401(k) plans is annuities, which carry significantly higher fees because of the transfer of investment risk from the participants to the insurance company.”

Choosing lower-cost investments will help to lower fees.

“Participants often have choices of low-cost index funds for passive mutual funds and/or lower-cost retirement share classes for active mutual funds,” Murray says.

Just make sure a lower-cost investment in a 401(k) plan also meets your long-term financial goals.

“While it is possible to select less expensive investments, such as index funds, you need to choose investments that are in line with your needs and strategy. Choosing based on cost alone could lead you to have less-than-optimal exposure. For example, if you put everything in a stable value fund because it appears to have no fees, is that the right long-term strategy?” Pritchard asks.

If you are unhappy with the number of lower-cost investments in your 401(k) plan, request more.

“They can always speak with the plan sponsor (for) smaller companies or benefits/HR (for) large companies to see if they would consider adding lower-cost alternatives,” Murray says.

If a plan sponsor or HR rep won’t budge, make the most of the pricey 401(k) plan that you have. At the very least, invest enough to get an employer’s free matching contribution.

“You might contribute just enough to get the match, and then look at IRAs for additional savings,” Pritchard says.

The Bottom Line

If you have money in a 401(k) plan, you must discover the costs of the fees you are paying. Check out your plan’s Participant Fee Disclosure. Ask your 401(k) plan representative if you don’t know where to find it. One way to lower 401(k) fees is to choose low-cost investments such as index funds for your investments.

Actively managed mutual funds come with higher costs, as do annuities. So, carefully consider the costs of the investments that you choose. But don’t lose sight of your investment strategy. Make sure the lower-cost investments that come with a great price also make sense as part of your long-term investments.

Reviewed by Marguerita Cheng

For almost half of human history, our ancestors moved with the four-legged food supplies of their respective areas, leaving only traces of their lives in the form of cave drawings, stone weapons and tools, and other artifacts.

Over time, our ancestors gradually abandoned the hunter-gatherer lifestyles. This transition period spanned between 30,000 BC and 15,000 BC. The change, though far from global, marked a major shift toward an agrarian society. It also heralded the advent of homeownership in a country that was eager to establish settlement from east to west. In this article, we look at the original investment, the birth of homeownership, and real estate as we know it in the United States today.

Key Takeaways

• Human culture evolved from nomadic tribes and wandering shepherds.
• The advent of private property and land ownership set the stage for the modern system of real estate.
• Homeownership was primarily associated with the elite—those who held power and wealth.
• The rise of the middle class and financing has made it possible for people to achieve the dream of homeownership.

Staking Claim

Many agrarian systems progressed in a very similar fashion. Fertile plains were staked out and settled in a might-makes-right manner, meaning those who could defend the land were the ones who kept it. Eventually, a system of tribal leaders developed, and those who had the approval of the tribe would disperse lands, settle disputes, and require payment from all their subjects.

The shift toward more and more powerful tribal leaders culminated in a pooling of labor, along with a chief executive officer (CEO) of sorts to direct efforts. Irrigation channels were dug, strongholds were built, farming methods improved, and temples were erected.

With the land improvement, populations exploded. Where a family of hunter-gatherers might be able to support one or two children at best, farmers could provide for several children. The increased fertility also meant greater numbers of available laborers.

The Original Protection Racket

Hunter-gatherers also followed a tribal system, but scarcity and the uncertainty of life meant that a tribe could only support two or three extended families. The amorous farmers, however, soon found that they could not name everyone in their tribe anymore. In return for the sacrifice of familiarity, people living in these small societies gained the safety of numbers.

A well-fed army easily repelled any desperate raiders. In return for this security, the people all paid homage to the lord or king who claimed ownership of the land. This was essentially the first system of rent.

As these farming villages grew into cities, the leading families maintained ownership by right of lineage—their ancestors were the ones who clubbed all other challengers senseless—thus becoming the kings, pharaohs, daimyos, and sundry heads of other feudal dynasties.

Note

The Louisiana Purchase was the first major real estate transaction made by the United States. The French sold Louisiana to the U.S. in 1803.

All Hail the King

This system of labor-for-protection developed into two separate systems in most countries: taxes and tenancy. Royal families spread their wealth to friends, signing away titles and deeds to lands that allowed the holders to collect the revenues or rent produced by the peasants living there.

On top of this rent, all the people within a ruler’s realm were generally required to pay a tax. Many other demands were made by the ruling leader, such as military service. These demands were grudgingly met because the rulers owned the land not only by birthright but by military might as well. Rulers could be overthrown by other rulers (sometimes by peasants). At times. a new ruler would sit on the throne and the average peasant would rarely notice a difference.

But it wasn’t all bad news for the peasants. They were able to trade with other kingdoms and the general level of wealth increased, giving rise to a merchant class as well as specialized laborers or tradesmen who were able to earn a living through skills other than farming.

This, in turn, resulted in non-agrarian shops and houses that still paid rent and taxes to the various lords and kings, but were bought, sold, and rented among the common folk rather than by the royal class. Richer merchants became the first common-born landlords, gaining wealth and status. These merchants didn’t own the land, but they owned the houses on it.

The King Is Dead

Many aristocracies were eventually displaced, often via the displacement of an aristocrat’s head from the body. This was done by putative meritocracies or systems in which the truly best and brightest lead a nation for the good of all.

What happened instead was the creation of politics. Title lands were broken into smaller parcels and sold on a free market of sorts, but the people with the money to buy the deeds were either merchants or former aristocrats who managed to escape being shortened by revolutionary fervor. Peasants had yet to make much progress from the original farming-tribesmen of 30,000 years prior.

Important

The Homestead Act of 1862 was signed by President Abraham Lincoln and allowed Americans to purchase and settle 160-acre plots of Western U.S. land. About four million claims were laid as a result of the law. The act was repealed in 1976.

The Age of Machines

The Industrial Revolution was one of the great equalizers in human history, perhaps only matched by the invention of firearms. The effects of industry were neither positive nor negative but depended on application. The use of machines for manual labor freed many peasants for different tasks and allowed a privileged few the time for education and specialization into new fields of labor opened up by the mechanization of industry.

Cobblers, seamstresses, and cabinetmakers found that their once invaluable skills were now obsolete, leaving them to return to the land and the coal mines beneath it to try to eke out a living.

People with ambition were able to jump classes and bring some of their low-class sensibilities with them, leading to tract housing for laborers and a range of products aimed at the lower classes. People were now divided into the middle class, blue-collar, white-collar, and a handful of other social categories. They owned houses, cars, and, eventually, radios and televisions, which suggested what other things they might want to own.

Magic Mortgages

The invention of mortgages belongs to no particular country. Mortgages existed for a long time as exclusive loans given only to the nobility. After the Industrial Revolution, however, the wealth of the world increased to the point where banks opened themselves to “higher-risk” mortgage loans—those made to common people. This allowed individuals to own their own homes and, if they so desired, to become landlords themselves.

It took 30,000 years, but homeownership is now open to almost everyone. In fact, it reached the point where people often buy too much or take out too much of a mortgage.

The freedom to own something can be a heady brew, so it is important to practice moderation. Taking on too much debt by way of a mortgage can help you lose a house as readily as a loan will help you own one.

When Did Owning a House Become Common?

Homeownership is part of the American Dream. In fact, the rate of homeownership has increased significantly since the 20th century. But the idea of owning a home arose among agrarian societies, where it was considered an advantage to own family farms compared to acreage that was rented from capitalist landlords. Settler societies planted the roots of homeownership, which were furthered by policies enacted after war and conflict. Policies aimed at helping those returning from combat to settle into society made homeownership not only a possibility but also a reality.

How Did Real Estate Start?

The real estate industry traces its roots back to the late 19th century. But it didn’t begin to take shape as we know it until the early 1900s. The National Association of Realtors was established as the National Association of Real Estate Exchanges in 1908 in Chicago as a way to expand real estate matters. The industry went through a series of evolutionary changes to include investment properties, flipping, and online sales.

How Did Land Ownership Develop?

Land ownership is deeply rooted in human history. Early tribal cultures (and still many of them today) used the land and its resources for sacred reasons only as needed rather than for economic ones. Rights to land were transferred between generations. It wasn’t until early agricultural societies formed that people began to settle land. The ruling class recognized land ownership as a way to hold onto and increase its power and wealth.

When Did Real Estate Become an Investment?

Fluctuating property values have made real estate a very popular investment for many people. But real estate investing isn’t a new concept. Renting land to tenants became commonplace in the early days of the United States, followed by a surge in real estate after the Great Depression and World War II. The federal government enacted legislation for investors to generate income from real estate investment trusts in 1960, which led the way for people to buy and sell properties for profit. But it wasn’t until the recession of the 1980s that real estate investing actually took off.

The Bottom Line

Ownership, specifically the ownership of land, was the basis of all the investment opportunities we see today. Without a stable population and a set location, trade and commerce between groups is limited. Ownership has moved from being established by strength to being something you can buy, sell, trade, and rent.

There has always been a trade-off for tenancy—a fee paid to the owner for the land and its protection. This responsibility was first afforded to tribal leaders, then to kings, and finally to landlords. Now we have the power to own our homes—a development that has changed the way people live.

Nongovernmental organizations (NGOs) are crucial in addressing global humanitarian challenges. These mission-driven entities operate independently from government control, focusing primarily on social, humanitarian, and environmental issues. There are about 1.5 million NGOs in the United States alone. Both in the U.S. and internationally, they are found wherever humanity’s challenges are greatest.

While their name suggests complete independence from government institutions, many NGOs receive some government funding alongside private donations and other revenue sources. This creates shifting dynamics based on levels of state support and the wishes of major donors.

This article explores what they are, how they operate, and their evolving role in international development and social change.

Key Takeaways

• Nongovernmental organizations (NGOs) play a significant role in international development, aid, and philanthropy.
• NGOs are nonprofits and may run budgets of millions or billions of dollars each year.
• NGOs rely on a variety of funding sources, from private donations and membership dues to government grants.
• Advocacy NGOs work to influence public policy.
• Some well-known NGOs include the American Red Cross, the Salvation Army, and Amnesty International.

What Is a Nongovernmental Organization (NGO)?

An NGO is a mission-driven entity that operates independently of government control, focusing primarily on social, humanitarian, or environmental issues. While most NGOs are nonprofit, they may receive funding from various sources, including government grants, private donations, and international institutions.

The term “NGO” was introduced in the United Nations Charter in 1945, highlighting their role as voluntary citizen groups working for the public good. Since then, NGOs have become influential actors in international development, advocacy, and humanitarian aid.

According to the World Bank, NGOs can be broadly categorized into two main categories:

• Operational NGOs: These organizations focus on designing and implementing development-related projects.
• Advocacy NGOs: These organizations promote specific causes by raising awareness, lobbying, and influencing policies. They work to shape the social and political landscape around particular issues.

These organizations operate at all levels (from local to international) and work to address issues such as poverty, human rights, health care, education, and environmental protection.

Types of NGOs

The acronym “NGO” serves as an umbrella term encompassing a diverse ecosystem of groups that have evolved to address specific needs and operational niches. As the nongovernmental sector has grown in complexity and reach, various subtypes have emerged that reflect differences in scope, funding sources, governance structures, and relationships with other institutions:

How Are NGOs Funded?

Financial sustainability remains a persistent challenge for many NGOs, driving innovation in funding approaches. Organizations increasingly combine conventional funding sources (bilateral and multilateral aid) with unconventional methods like microenterprises and impact investing.

Private donations from individuals, corporations, and philanthropic foundations often form the backbone of many NGOs’ financial structures. These contributions may range from small individual gifts to substantial grants from major funders like the Gates Foundation and Ford Foundation. Membership dues provide another reliable revenue source, particularly for organizations with strong constituent bases or professional affiliations.

Note

NGOs often engage in both operational and advocacy activities, combining direct action with efforts to influence broader policies and practices.

Many NGOs also receive significant funding through government grants and contracts. Despite their “nongovernmental” designation, these organizations often carry out programs aligned with government priorities in international development, humanitarian assistance, or social services. Large international NGOs may secure funding from multiple government donors, including agencies like the U.S. Agency for International Development (U.S.A.I.D.), the U.K. Department for International Development, and their counterparts in other nations.

The scale of NGO finances varies dramatically, from small community-based organizations operating on minimal budgets to international giants managing portfolios worth billions of dollars annually. BRAC, often cited as the world’s largest NGO, gives an example of the scale involved, with about 100,000 employees.

Government Support for NGOs

While some NGOs maintain strict independence from governments—Amnesty International stands out in this regard—others operate in close partnership with government bodies while still preserving their nongovernmental status. Government donors may have self-interested motivations, such as enhancing diplomatic relationships, projecting soft power, or improving their international image through association with humanitarian work. However, some critics point to government-organized NGOs (GONGOs) as examples where the line becomes so blurred that it constitutes no difference at all from government agencies.

Nevertheless, many receive funding from governmental sources without compromising their autonomy. This distinction is important—accepting government grants or contracts doesn’t automatically transform an NGO into a government mouthpiece or propaganda outlet. (Authoritarian regimes habitually trace down the smallest donation, no matter how indirect, to claim an NGO is but a tool of that state.) Most reputable NGOs maintain strict operational independence, regardless of funding sources.

Government funding for NGOs exposes these organizations to other political vulnerabilities that can undermine their stability and effectiveness. The Trump administration’s attempt to dismantle U.S.A.I.D.—a major government agency that has channeled billions in funding to NGOs globally for decades—illustrates this risk dramatically. As the administration moved to close the agency, the consequences weren’t just political and legal; thousands of NGO programs worldwide were jeopardized.

“The U.S. government’s decision to end thousands of aid programs will have devastating consequences,” said Tjada D’Oyen McKenna, CEO of Mercy Corps, an international humanitarian NGO, in a press release. “These programs not only saved lives, they prevented conflict and instability, and helped communities recover from crisis, reducing long-term reliance on aid.”

Thus, while government funding doesn’t necessarily compromise an NGO’s mission or independence, it creates relationships that political winds can push aside, often with little warning or recourse. This reality highlights why many NGOs pursue diversified funding models, combining government support with private donations, foundation grants, and corporate partnerships.

Below, we’ve broken down some of the major governmental and intergovernmental sources of funding for NGOs worldwide, along with the acronyms most widely used:

How To Form an NGO

Establishing an NGO requires careful planning, legal compliance, and a clear vision for the organization’s impact. The process begins with defining a specific mission and developing a detailed strategic plan that outlines realistic goals and implementation steps. This foundational work is crucial for the organization’s long-term sustainability and effectiveness.

The next phase involves assembling a committed board of directors with relevant expertise and passion for the cause. This leadership team should contribute diverse perspectives and skills while being unified in its commitment to the organization’s mission. Once this governance is in place, founders must select a name that reflects the organization’s purpose and draft comprehensive articles of incorporation and bylaws that will guide future operations.

Registration requirements vary significantly by country but generally involve submitting documentation about the NGO’s structure, leadership, and mission to the right government authorities. In most jurisdictions, this process includes filing specific forms with local or federal agencies and paying moderate registration fees. The complexity and timeline for this process can range from a few days to several months depending on the country’s regulatory environment.

After successfully registering, many NGOs apply for tax-exempt status, which provides substantial financial advantages and greatly improves their ability to attract funding. In the U.S., organizations typically apply for 501(c)(3) status by filing Form 1023 with the Internal Revenue Service (IRS). The application process often requires many hours to prepare and includes detailed information about the organization’s governance, finances, and programmatic plans.

Achieving tax-exempt status creates a dual benefit: the NGO avoids certain tax obligations, and donors can claim tax deductions for their contributions. However, this status comes with ongoing compliance responsibilities, including maintaining detailed financial records, submitting annual filings to regulatory authorities, and adhering to specific regulations regarding political activities and private benefit distributions. These accountability measures help ensure that the organization remains true to its charitable purpose and operates with transparency.

The Bottom Line

NGOs are an essential force in addressing global challenges. Operating at the intersection of public service and private initiative, these mission-driven entities navigate complex terrain, balancing independence from government control with the practical realities of funding partnerships, regulations, and operational challenges.

In both the U.S. and globally, NGOs have established themselves as essential players in complementing government efforts, driving change in humanitarian and development sectors, and addressing gaps in social services. Their adaptability has enabled them to respond rapidly to emerging issues, often going to places and working with populations traditional governance structures have abandoned.

Explore Private and Federal Options for Funding

Fact checked by Suzanne Kvilhaug
Reviewed by Katie Miller

Boosting Female Entrepreneurs: Overview

Of the 33.2 million small businesses in the United States, nearly 13 million of them are owned by women. These businesses employ almost 10 million people and generate nearly $1.8 trillion in annual revenue. Yet, female company founders receive only about 16% of all first-round venture funding capital, according to a Yale School of Management study released in late 2024.

With more women jumping into entrepreneurship, there’s a clear need for funding to support women-owned businesses. These organizations are answering the call. 

Key Takeaways

• Numerous non-profit organizations regularly award grants to small businesses being launched by or expanded by women owners.
• Federal grants are available to small business owners.
• Professional business associates for women are a great resource for networking and mentoring.
• Don’t overlook funding sources like bank loans and peer-to-peer lending.

Private Small Business Grants for Women

Amber Grant

WomensNet gives away $30,000 in Amber Grant funds every month to a women-owned business or nonprofit. They also award three year-end grants of $25,000 each to one of the 12 monthly winners of the Monthly Amber Grant, the Startup Grant, and the Business Category Grant.

To be eligible, you must be age 18 or older, and your business must be 50% women-owned, operating in the U.S. or Canada. WomensNet’s straightforward process makes it easy to apply—just share your business story and how you plan to use the grant.

IFundWomen Grant

The IFundWomen marketplace has a mission to close the funding gap for women-led businesses. Simply fill out the Universal Grant Application, and anytime IFundWomen partners with a new brand, they’ll match that partner’s grant criteria to businesses in the database. If there’s a match, they’ll notify you immediately.

So far, the program has deployed $170 million in grants to entrepreneurs through partnerships with brands including Visa, Caress, Johnnie Walker, Botox Cosmetic, and Comcast.

Women Founders Network Fast Pitch Competition

The Fast Pitch Competition provides $55,000 in cash grants and more than $100,000 in professional services to tech-focused business-to-business (B2B), business-to-consumer (B2C), and consumer-focused businesses.

To qualify, the founder/CEO must be a woman or the business must be majority-owned by a woman, and the company must be based in the U.S. It accepts pre-revenue plans but excludes life sciences, nonprofit, and cannabis/CBD companies.

NASE Growth Grant

The National Association for the Self-Employed (NASE) chooses four winners each quarter to receive up to $4,000 in grant support. You can use your grant award for a range of growth purposes, including hiring employees, purchasing equipment, and marketing.

To apply, you must be a NASE member in good standing. The NASE evaluates your application based on identifiable business need, how you plan to use the grant money, and its potential impact on overall business growth and success.

Freed Fellowship Grant

Every month, one small business owner in the U.S. wins a $500 Freed grant to invest in their business. Just by applying, you’ll get feedback on your business and two months of free mentoring in the Freed Studio virtual community.

Winners get access to additional business coaching and a chance to receive an end-of-year bonus grant of $2,500.

HerRise MicroGrant

HerSuiteSpot and The Yva Jourdan Foundation partner to help women of color start or grow a business. The HerRise MicroGrant selects a winner each month to receive $1,000 for business needs such as computers, equipment, marketing materials, software purchases, and website creation.

To apply, your business must be currently registered in the U.S., 51% owned by women of color, and have less than $1 million in gross revenue. This grant excludes nonprofits, franchises, direct sellers, authorized resellers, and independent consultants.

FoundHer Program

The FoundHer Program accelerates growth for women-founded businesses in Hawaii. The six-month program includes a $20,000 grant, a $4,000 care stipend, weekly educational workshops, a national network of business mentors and advisors, and monthly retreats.

You must be a for-profit, Hawaii-based small business that is 50% Asian American and Native Hawaiian/Pacific Islander (AANHPI) women-led. The program focuses in five core markets of Hawaii’s economy: technology, fashion, health and wellness, food systems, and keiki/education.

Cartier Women’s Initiative Award

Any women-run and women-owned business can apply for the Cartier Women’s Initiative award, regardless of country or sector. Your business must demonstrate a strong and sustainable social or environmental impact.

Grants within this program include nine regional awards and two thematic awards: the Diversity, Equity & Inclusion Award (open to all genders), and the Science & Technology Pioneer Award.

Tory Burch Foundation Fellows Program

Every year, the Tory Burch Foundation selects 50 promising female entrepreneurs for a year-long fellowship program. The Fellows Program includes coaching and network-building as well as financial assistance for the business.

Launch Program by Ladies Who Launch

If you’re a women- or nonbinary-owned business in the consumer packaged goods sector, check out the Launch Program by Ladies Who Launch. The program provides a $10,000 cash grant, mentorship from industry experts, and six months of free education to support you on your business journey.

Interested businesses must have an annual gross revenue from $100,000 to $499,000 and cannot currently be raising, have previously raised funds from, or intend to seek venture capital or angel investment, or a liquidity event, in the next 12 months.

Women’s Business Development Council Equity Match Grant

For Connecticut residents, the Women’s Business Development Council awards grants from $2,500 to $25,000 to qualified woman-owned small businesses.

The council provides grants to small businesses, startups, and businesses with growth potential, as well as funding for licensed childcare businesses.

High Five Grant for Moms

The Mama Ladder’s High Five Grant program is a one-of-a-kind opportunity for mom entrepreneurs to win financial support for growing their businesses. In 2023, The Mama Ladder awarded grants totaling $38,500 to 24 recipients, with a grand prize of $10,000.

Anyone who is a mother and the owner (or 50% co-owner) of a revenue-generating business can apply. This includes foster moms, expecting moms, stepmoms, and mothers of adult children. 

Federal Business Grants for Women

Grants.gov

Here you can search an extensive list of available grants, plus get help on how to apply, find available forms, and track your application. The database lists grants from government agencies and funding instruments from the Department of Energy, NASA, Department of State, Department of Health and Human Services, Native American tribal governments, and others.

SBIR and SBTT Programs

The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs support small U.S. businesses doing research that could lead to new products. To be eligible, a business must be organized in the U.S., mostly owned by U.S. citizens, and have fewer than 500 employees. 

STTR involves working with a U.S. nonprofit research institution. STTR has some extra requirements, like agreeing on who owns the ideas that come out of the research and specifying how the work is shared between the small business and the research institution.

Program for Investment in Microentrepreneurs (PRIME)

The PRIME program funds state and local nonprofits that assist microentrepreneurs in disadvantaged communities. The focus is on entrepreneurs in rural areas.

PRIME grants typically require at least 50% in matching funds or in-kind contributions from its nonprofit partners. 

Additional Resources for Female Business Owners

Office of Women’s Business Ownership

The Office of Women’s Business Ownership, established by the U.S. Small Business Administration (SBA), empowers women entrepreneurs in the U.S. by providing advocacy, outreach, education, and support. Through Women’s Business Centers across the country, the office offers comprehensive training and counseling, access to credit, and marketing opportunities.

DreamBuilder

DreamBuilder offers free online courses in both Spanish and English to help women start or grow their businesses. The program includes a step-by-step framework for launching a small business and a course specifically focused on financing, providing a personalized business plan, and a Capital Action Plan.

Belle Capital USA

Belle Capital USA is an early-stage angel fund investing in fast-growing companies led by women. Their goal is to achieve top returns by working closely with these companies, helping them grow quickly, and prepare for success.

The fund also encourages other women to become early-stage investors, recognizing the significant impact it can have on shaping the funding landscape for startups.

Professional Associations and Industry Organizations

Joining a professional women’s organization can make a massive difference in a woman’s career. Whether you are just starting your professional journey, making a switch to a new field, or considering launching a new enterprise, it’s likely there is an organization that can help. Some professional women’s organizations focus on minorities, some on specific industries, and some are general. Examples include:

• Minority Business Development Agency
• Asian Women in Business
• Association for Women in Science
• Financial Women’s Association
• American Business Women’s Association
• Business and Professional Women International

National Women’s Business Council (NWBC) 

The National Women’s Business Council (NWBC) advises the president, Congress, and the Small Business Administration on issues affecting women business owners. The NWBC focuses on overcoming challenges like limited access to money. It supports women in science, technology, engineering, and mathematics (STEM) through activities like webinars and roundtables, aiming to create a more inclusive entrepreneurial environment.

GrantsForWomen.org

This site hosts a comprehensive directory of all the organizations and foundations that offer grant funding to women. The database includes federal, corporate, private, and professional grants, plus general information about the process. 

Funding Alternatives to Small Business Grants

Aside from grants, there are a number of alternative funding options available to businesses, such as:

• Traditional bank loans
• Microloans
• Venture capital and angel investment
• Crowdfunding
• Bridge loans
• Peer-to-peer lending
• Term loans

What Defines a Woman-Owned Business?

If your business is at least 51% woman-owned and woman-operated, it can be classified as a woman-owned business. The National Women’s Business Council (NWBC) defines two options for official certification: women-owned small business (WOSB) and economically disadvantaged women-owned small business (EDWOSB). 

Businesses may self-certify for free, or obtain certification from a Small Business Administration (SBA)-approved third-party certifier for a fee. The NWBC considers both methods to be valid and equally beneficial.

To qualify as a WOSB, a woman must hold the highest officer position, work at the business full-time, and be involved in making both day-to-day and long-term business decisions for the company. Qualifying as an EDWOSB means meeting all criteria of a WOSB, plus additional income, net worth, and asset requirements.

Obtaining this certification gets you access to federal contracts and economic resources and adds credibility to your grant applications.

How Do I Write a Grant Proposal for a Small Business?

Applying for grants can be a bit of a waiting game. You fill out forms, submit them on time, and then cross your fingers as you wait for the decision from the committee or organization handling your request.

The key to a successful grant application is to follow instructions to a T. Failure to do so could mean removal from the consideration process. If you find the process a bit daunting, consider reaching out to a grant writer.

Follow these tips for a successful grant proposal:

• Make sure you meet the minimum eligibility requirements.
• Understand and tailor your application to the goals, values, and objectives of the institution offering the grant.
• Have a clear goal for why you want the funds and how you’ll use them.
• Build your company’s credibility through clear and thorough documentation, including business records, testimonials, and research to back up any claims.

The Bottom Line

Female-run companies still receive disproportionately lower funding than their male counterparts. Many businesses, foundations, government agencies, and organizations have stepped up to address that disparity.

Applying for and winning a grant specifically for female entrepreneurs could boost your business financially, and get you access to mentoring, exposure, and other resources for growth. One day, you may be able to pay it forward by taking an active role in funding the next generation of female entrepreneurs.