You Are Starting a NonProfit?
Starting a nonprofit and running it with success is not always the easiest thing you will ever do, nonetheless it is most probably the most rewarding thing. I like to think that starting a nonprofit and running it with success can be comparatively easy. You must remember starting a nonprofit organisation is in essence starting a business, so there is some work that comes with its start-up. Having been involved in nonprofit work for over 15 years, I have seen many begin though starting a nonprofit only to be annoyed and give up part way through. Anything that is worth doing is worth doing right, and equally, worth the endeavour. Below are the steps you have to start a nonprofit. Included are steps to start a nonprofit thru a fiscal sponsor which may prove to be far easier than making an independent charity.
Steps in Starting a NonProfit Thru a Fiscal Sponsor
Find an independent non-profit willing be a fiscal sponsor for your non profit project
Go thru the Fiscal Sponsors application process (details here)
There is not much to starting a nonprofit thru a fiscal sponsor. The majority of the application procedure falls on the organization who is granting the support.
Things you are going to need to research with the Fiscal Sponsor:
- Request and look over the Sponsor's agreement
- Understand the application fee and if that's a one off or annual amount
- Get specifics on administration charges and what that covers
- Understand how banking and access to funds works
- Inspect the services the sponsor provides
Steps in Starting a NonProfit That Is an Independent 501c3
1. Obviously outline a specific problem and outline the target population (the fans to get services).
2. Conduct a Community Resource Inventory (a listing of resources available to the target population). Research whether or not another nonprofit is currently doing this work or something similar (in your neighborhood or a bordering area).
3. Conduct social promoting. Poll the community to work out if there's an interest in the proposed services.
4. Establish the purpose of the organisation and create a mission statement.
5. Induct and form a board of directors. Get a solid commitment from all members including a knowledge of what their role will be and the amount of time they are prepared to commit.
6. Decide state prerequisites for incorporation and get applications.
7. Draft articles of incorporation and bylaws (the organization's "rule book").
8. Hold initial board meeting.
9. Gain written approval of articles and bylaws, authorize filing for tax exemptions, elect officers, set meeting schedule, identify and designate members to committees, make a system of checks and balances, and take minutes.
10. File articles of incorporation with state and note any reporting wants.
11. Develop a strategic plan (an activity plan that expresses a vision of the organization's potential and where it is going) at least for one year initially, and obtain board approval.
12. Develop a budget and establish an accrual accounting system.
13. Develop a resource/fund development plan.
14. Build a record keeping system for the organization's official records (such as company documents, board minutes, monetary reports, etc.).
15. File for I. R. S 501 (c) (3) tax exemption by submitting IRS Form 1023 and consulting Publication 557.
16. File for state and local tax exemptions (like income, sales and property tax).
17. Meet the prerequisites of state, county and civil charitable solicitation laws and obtain suitable authorizes and licenses.
18. Get an employer identification number from the IRS by filing IRS Form SS"4.
19. Register with the state unemployment insurance bureau.
20. Apply for a nonprofit mailing authorization from the US Postal Service.
21. Obtain all needed insurance (like directors ' and officials ' responsibility, property, for example.).
Through a Fiscal Sponsor many of the steps to starting a nonprofit are eliminated making it quicker and better to make a charitable organization.
Irrespective of the method you use starting a nonprofit, be determined and don't let anything discourage you. The work your nonprofit can do around the globe will be worth what ever effort it takes to get it started. You can begin starting a non-profit by following the steps above.
Starting a nonprofit and running it with success is not always the easiest thing you will ever do, nonetheless it is most probably the most rewarding thing. I like to think that starting a nonprofit and running it with success can be comparatively easy. You must remember starting a nonprofit organisation is in essence starting a business, so there is some work that comes with its start-up. Having been involved in nonprofit work for over 15 years, I have seen many begin though starting a nonprofit only to be annoyed and give up part way through. Anything that is worth doing is worth doing right, and equally, worth the endeavour. Below are the steps you have to start a nonprofit. Included are steps to start a nonprofit thru a fiscal sponsor which may prove to be far easier than making an independent charity.
Steps in Starting a NonProfit Thru a Fiscal Sponsor
Find an independent non-profit willing be a fiscal sponsor for your non profit project
Go thru the Fiscal Sponsors application process (details here)
There is not much to starting a nonprofit thru a fiscal sponsor. The majority of the application procedure falls on the organization who is granting the support.
Things you are going to need to research with the Fiscal Sponsor:
- Request and look over the Sponsor's agreement
- Understand the application fee and if that's a one off or annual amount
- Get specifics on administration charges and what that covers
- Understand how banking and access to funds works
- Inspect the services the sponsor provides
Steps in Starting a NonProfit That Is an Independent 501c3
1. Obviously outline a specific problem and outline the target population (the fans to get services).
2. Conduct a Community Resource Inventory (a listing of resources available to the target population). Research whether or not another nonprofit is currently doing this work or something similar (in your neighborhood or a bordering area).
3. Conduct social promoting. Poll the community to work out if there's an interest in the proposed services.
4. Establish the purpose of the organisation and create a mission statement.
5. Induct and form a board of directors. Get a solid commitment from all members including a knowledge of what their role will be and the amount of time they are prepared to commit.
6. Decide state prerequisites for incorporation and get applications.
7. Draft articles of incorporation and bylaws (the organization's "rule book").
8. Hold initial board meeting.
9. Gain written approval of articles and bylaws, authorize filing for tax exemptions, elect officers, set meeting schedule, identify and designate members to committees, make a system of checks and balances, and take minutes.
10. File articles of incorporation with state and note any reporting wants.
11. Develop a strategic plan (an activity plan that expresses a vision of the organization's potential and where it is going) at least for one year initially, and obtain board approval.
12. Develop a budget and establish an accrual accounting system.
13. Develop a resource/fund development plan.
14. Build a record keeping system for the organization's official records (such as company documents, board minutes, monetary reports, etc.).
15. File for I. R. S 501 (c) (3) tax exemption by submitting IRS Form 1023 and consulting Publication 557.
16. File for state and local tax exemptions (like income, sales and property tax).
17. Meet the prerequisites of state, county and civil charitable solicitation laws and obtain suitable authorizes and licenses.
18. Get an employer identification number from the IRS by filing IRS Form SS"4.
19. Register with the state unemployment insurance bureau.
20. Apply for a nonprofit mailing authorization from the US Postal Service.
21. Obtain all needed insurance (like directors ' and officials ' responsibility, property, for example.).
Through a Fiscal Sponsor many of the steps to starting a nonprofit are eliminated making it quicker and better to make a charitable organization.
Irrespective of the method you use starting a nonprofit, be determined and don't let anything discourage you. The work your nonprofit can do around the globe will be worth what ever effort it takes to get it started. You can begin starting a non-profit by following the steps above.
About the Author:
To find out more about starting a nonprofit, Click Here ---->> http://SimpleNonprofit.com Scott Michael Ringo, an entrepreneur, is known worldwide as the nonprofit Guru and expert fundraiser because he helps others easily start and fund non profit charities all around the world. Through his work with nonprofits across the world he helps people start and run successful non-profit organizations. He's a legacy builder and will help you build your nonprofit organization heritage.
