How to Start a Non-Profit
A non-profit organization is a legal entity put together for the purpose of benefiting a community. It is a public good used to help the welfare of our society. Unlike businesses, non-profit organizations don’t provide profits for its owners, but rather use any profit to further the organization’s movements and help it expand its operations.
Know Before You Go:
- There are lots of different types of non-profit organizations which means you will have to choose the one that best fits what you are trying to accomplish.
- There are various legal fees involved in creating a non-profit organization that can lead to growing expenses you should be prepared to pay.
- The process can be difficult and time consuming which may mean considering hiring legal professionals to aid you through it.
Steps to Start Your Non-Profit:
Step 1: Set Up the Foundation
You need a strong base from which your organization can be built upon. In order to complete the first step in the process there are some things you need to do:
- Name your non-profit and register it
- Create a mission statement
Step 2: Create Your Business Plan
Make sure you have a clear plan for your organization to follow in order for it to be successful. Without a plan it may be difficult to stay on track and thrive. This plan includes:
- Making and integrating bylaws.
- Listing the types of products, programs, and services the organization will provide to the community.
- Creating a detailed marketing plan.
- Creating a detailed operational plan.
- Creating a detailed financial plan.
Step 3: Build Your Team
Your team must include a board of directors, volunteers, and staff willing to contribute to the betterment of their community by helping this organization. Some things they do/are responsible for are:
- The board of directors help make decisions, run financing, create bylaws, etc.
- The volunteers offer their time and skills to carry out events that are planned to engage the community and directly bring them aid.
- The staff are usually some type of communications manager there to help promote the organization, organize certain events/groups, etc. and are paid for their work.
Step 4: Legally Register
Legally registering your organization will allow you to get tax exemptions as well as make it a recognized entity under the law. To do this you must:
- Complete all of the above steps (except the taking on of volunteers or communications managers).
- File your articles of incorporation.
- Apply for employee identification numbers.
- File for tax exempt status.
Step 5: Get Some Funds
You have probably already spent a lot of money starting up the organization, but now it’s time to start the real impactful work. At this point it may be a good idea to look for financial help through:
- Grants
- Donors
- Corporate sponsorships
- Membership fees
- Crowdfunding
Step 6: Start Your Pre-Actions
There are some things that the organization can do before opening its doors to the community. These actions mostly include promoting itself and expanding its network to gain more support and have a greater positive impact on the community. These pre-actions can include:
- Creating a website.
- Getting active on social media.
- Finding an office space.
- More.
Heads Up:
- Do not compensate board members/directors or yourself if there are profits.
- Do not try to use the organization to influence any type of policies, legislation, etc.
- Try not to take on too many liabilities that can lead to financial troubles for the organization.
- Don’t spend more money than you have even if it’s for a good cause.
- Try to raise money through limited methods to manage the income stream efficiently.
- Make sure to keep detailed records of the organization’s history to help it mature and live on.
- Try to keep good relationships with the community and donors.
- Make sure you get volunteers to help!
Other Resources:
For more detailed information on this topic or if you are looking to continue your research please feel free to use the following sources:
