So....You Want to Start a Non-Profit Organization

As a professional writer, specializing in grant writing for non-profits and faith based organizations, I often receive calls from individuals who are considering starting a non-profit organization. Although the majority of inquiries are from people who have a genuine concern or passion for a particular need within their respective communities; the frightening calls are from individuals who seem to think starting a non-profit organization provides them with the ideal opportunity to avoid paying taxes.

A huge misconception is the perception that non-profit status (typically a 501 c 3) will result in a lot of money dispersed your way to support your project, program, capital or staff expenses. This is an illusion.  The fact remains that most non-profit organizations struggle financially and are always on a quest to secure the necessary funding to ensure that their projects or programs can either be implemented or continued.

Most non-profit organizations spend hours submitting grant funding applications, requesting donations, hosting fundraising events, learning about and encouraging planned giving and engaging in extensive networking opportunities to build business relationships.

Important steps to consider before downloading IRS Form 1023 and applying for non-profit status:

1.    Become a volunteer for a non-profit organization FIRST; you cannot manage what you do not know.

2.    Set up meetings with several existing non-profit organizations to learn about the challenges they face and the state of the economic climate in the geographic area you are considering.

3.    Develop a business plan, just as you would with a for-profit business.

4.    Research and document the need, target audience and how many people will be served.

5.    Determine minimal staffing requirements.

6.    Organization location and expenses.

7.    Development of a Board of Directors.

8.    Understanding fundraising laws and non-profit requirements, expectations and reporting.

9.    Outline a funding resource strategy.

10.  Construct a Volunteer/Supporter recruitment plan.

11.  Outcomes desired and measurement methods to track success of lives changed or impacted.

12.  Identify other organizations in the area that are providing a similar service to ensure that another organization in the area is warranted.

      After the above factors have been carefully considered, consult the expertise of a qualified attorney or CPA to assist you with the required paperwork.  

While this article cannot cover everything that should be considered before starting a non-profit organization, it serves as a brief synopsis.

     Once you have acquired your 501 (c) 3 non-profit status, the following tips can help you move forward: 

·         Successful operation of a non-profit organization must be passion driven and above reproach in integrity.

·         Ethics are critical as the damage caused by a breach of ethics can be irrevocable and result in the demise of an entire organization.

·         It is imperative that all employees and volunteers recognize that they represent your organization 24/7 and that improper behavior, including online, is a reflection upon the organization and will not be tolerated.