Starting a Non Profit Organization
From LoveToKnow Charity
Before starting a non profit organization, there are many points to consider, including the need, mission, management team, filing requirements, and licenses or certifications.
Determine Need Before Starting a Non Profit Organization
Non profits are often started based on passion and good intentions. Someone sees a need or experiences an event in their lives that prompts them to start an organization as outreach to those in similar situations. It is important, however, to temper that excitement with some research of similar services that are provided in the area. An Internet search for non profit agencies through organizations like the National Association of Nonprofit Associations will determine if there are services similar to those offered by the potential organization.
Develop a Mission
Once it is determined that the services offered are unique to the area and will fill a need, create a mission statement. This is crucial in the development of an organization as it sets the tone for the work done by the organization as well as the funds for which the organization may or may not be eligible. The mission statement should not be as broad that it depicts a goal that is not realistically attainable. It should also not be so specific that it lays out a plan that can be resolved within the first year of operation. The organization founder should think long and hard about the catalyst for starting the organization and why the organization will fill a need for years to come. This is not to say that an organization cannot evolve and retool its mission statement, but a retooling is not an annual event.
The Team
Starting a non profit organization is not a one woman job. The organization founder should surround herself with talented people who are good at what they do and have faith in her leadership to take the agency where it needs to go. The following is a list of team members and the work that he or she will do:
| Team Member | Duties |
| Attorney | Legal Consult/Review federal and state filings |
| Board Members | Review articles of incorporation/bylaws |
| Insurance Agent | Obtain adequate liability insurance for agency, program directors and board members |
| Banker | Set up appropriate bank accounts with registered tax id number |
File Necessary Paperwork
Technology has created some user friendly processes for filing the necessary paperwork for non profits. All the information needed for tax exempt status and tax id number may be obtained from the IRS website. A special section is dedicated to charities. It will also be necessary to file state related paperwork for non profit status. Most states have a revenue department that handles state related filings. There may also be a city requirement for filings as well. Check with all levels of government to ensure compliance.
Obtain Licenses
After operations are underway, it is necessary to get the permits needed to run day-to-day operations. Non profits survive, in large part, due to donors. This means acquiring and maintaining a list of past, present and potential donors. Bulk mailings are sent to these donors periodically to keep them abreast of the organization's progress. Organizations need to obtain bulk mail permits to get any available discounts when sending large mail outs.
Before sending mail outs, it will also be necessary to get a license to solicit funds. This is typically offered through the city's local government. If the organization conducts fund raising activities in multiple cities, it may be necessary to obtain a licenses from each city.
They thing to remember when starting a non profit organization is to conduct as much research beforehand as possible. Information about how, when and why's of non profits abound throughout the Internet. Message boards are also a good place to seek advice from veterans as well as form beneficial alliances in the non profit industry.
by Maurice Moss
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This page has been accessed 744 times. This page was last modified 05:17, 13 February 2009.
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