Important Steps to Starting a Non-Profit Organization

for a cause, tips + tricks, non-profit organization, business
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Starting a non-profit can be an effective way to make changes for a cause you believe in and support. Many people turn their passion into their life’s work through the formation of a foundation or other organization. People like Activision Blizzard CEO, Bobby Kotick, who founded a non-profit for veterans, are making a difference every day. With determination and effort, almost anyone can do something similar. There are some important steps to starting a non-profit organization you should know in advance in order to make your journey a smooth one.

Take Time to Research

There are over a million non-profits in the United States. In order to increase the chances of yours being successful, it’s important to be sure there is a need for your particular group and that its purpose is not being duplicated elsewhere. Check out the website to research the existing non-profit center in your niche. If there are others, that doesn’t mean yours isn’t needed. You may intend to go in a different direction or serve a particular segment of the population. However, taking time to see what’s out there will help to strengthen and shape your idea.

Create a Business Plan

A non-profit agency is, in effect, a business. Therefore, you should have a business plan in place to ensure you are on the right track and to convince investors of your organization’s merits. Your plan is essential when applying for funding no matter which avenue you seek. In addition, potential board members and volunteers will be more apt to sign up to help when you demonstrate your professionalism, as well as your investment.

Complete Required Paperwork

You will want to incorporate your non-profit as you would with any business in order to qualify for certain privileges and protections. In addition, obtaining 501(c)(3) tax-exempt status is imperative. The paperwork involved can seem in-depth, but it is definitely worth completing in order to make your status official. The creation of by-laws and board of directors is necessary in order to provide accountability as a genuine entity. Finally, check with your state to determine if you will need to apply for additional permits or licenses.

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