The most basic issue regarding nonprofits is how to start one.
If there is a cause that needs addressing, a nonprofit may be the
best way to go. But how, you ask. It’s not as complicated as you
might think, though it does take time and energy and a good deal of
thoughtfulness. This article will give you the basics to starting a
nonprofit, one that will hopefully meet its creator’s mission.
The first thing you should do is write a mission statement, which is
a statement explaining why the organization should exist, what its
goals are, and what values will be employed to reach those goals.
After developing a mission statement, which can be changed later on
as the organization comes together, it’s time to decide what sort of
organization would best achieve the mission. An informal nonprofit
is one that is not incorporated, and this sort of arrangement is
often useful, though there are limits to its reach. A self-help
group, for example, could be classified as an informal nonprofit,
but it will achieve little outside of those directly involved in the
group.
On the other hand, an incorporated nonprofit exists as a legal
entity and is able to buy and sell property and maintain its own
bank account, and incorporating your nonprofit will ensure that it
remains in existence even after you are gone. Additionally, unlike
an informal nonprofit, an incorporated nonprofit protects its
creator and members from liability for the organization’s
operations.
After the mission statement, but before incorporation, you must
assemble a board of directors. You’ll need as many board members as
are required of corporate boards in the state in which you intend to
incorporate. You can find out what this figure if from your state
attorney’s office. Key things to keep in mind when forming a board
are clear understandings of what each members responsibilities will
be, what sorts of knowledge you need to assemble, and whether or not
the board will be compensated. It is also a good idea to keep
diversity in mind when forming your board.
With the board assembled you can then write your organization’s
bylaws, which offer details regarding how the organization will
function – from the way in which the board will operate to the
configuration of the staff. When these are approved by the board, a
nonprofit can be incorporated by filing articles of incorporation,
or other charter documents, with the appropriate office in the state
in which the organization is to be incorporated.
If you believe that your organization deserves to be exempt from
paying taxes, you should check with the Internal Revenue Service to
see if you can be granted such status, the most common being that of
a charitable nonprofit or 501(c)(3) organization. Depending on the
work that the organization does, you may also be able to get the IRS
to grant your nonprofit a tax-deductible status, which would allow
donors to deduct donations to your organization from their taxes.
Because there are inevitably going to be costs associated with
starting a nonprofit, you might consider pursuing a fiscal sponsor.
A fiscal sponsor is a nonprofit that assists another. If you don’t
have the funds needed to cover startup costs and fees, this is a
particularly useful resource. Also, if you are forming your
nonprofit in order to correct a specific problem and therefore do
not intend to remain in existence once the issue has been corrected,
you will probably benefit from finding a fiscal sponsor.
Beyond funding, you will need support in your endeavor. Though you
can do many of the tasks involved with starting a nonprofit, you
should seek the advice of a knowledgeable attorney, particular
regarding filing made to the IRS. Additionally, you should seek the
guidance of organizations that exists solely to help newly formed
nonprofits operate successfully; these are known as nonprofit
incubators. Beyond this it is a very good idea to hire an accountant
to handle the finances of the organization.
With this professional assistance in place, and with your
organization’s board to help you, you are well on your way to
achieving the goals for which you brought your organization into
existence. Starting a nonprofit is not a task to be undertaken on a
whim, and it is one that will require a good deal of effort, but if
you are truly interested in your cause, the time and effort put into
creating a nonprofit will be well worth it. |
