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How To Start A Non-Profit Organization

How To Start A Non-Profit Organization

Most people wanting to start a non-profit organization have intentions to give back to the community and render help to certain people who need it. If you are unsure of how to begin, then you are in the right place. 

We believe that before you delve into a venture, you need to understand everything that is involved. We will show you the step-by-step process of how you can get your non-profit organization up and running. You may not need to take all the steps written down in this article because we will be stating generally all the requirements. It will depend on what applies to your state.  We advise that you check in with a legal practitioner or your state’s official site for businesses and corporations, to know the standard requirements.

Here are the steps involved in setting up a non-profit organization:

Do Your Research

Before you set out to start your non-profit organization, you need to find out if other organizations are doing exactly what you intend to do for your community. If you are repeating the same ideas, it would be difficult for you to get support because instead of coming up with a fresh idea, you will be doing exactly what is on the ground. Also, you need to know the population of the people who would be needed the help your non-profit intends to give. For this reason, the demographic or population data will help you get the answer to your question.

Why Start A Non-profit Organisation?

The law specifically states the requirements for non-profit organizations. You will be setting it up solely to help others and not with any intention to make a profit. If you set up a non-profit because you want to make an income, that is against the rules of a non-profit. It should solely be for charitable purposes. You also need to decide if it is the right choice for you by learning about the advantages and disadvantages of establishing a non-profit organization.

Know Your Options

You need to understand what you are getting into. One of the biggest issues most non-profits experience when starting is how to raise money, especially from reliable sources. It has been estimated that less than half of newly formed non-profit organizations survive the first five years of operation. Even for those that scale through the five years, a third of them still struggle with finances.

You can find a way to balance things if you want the non-profit to survive. You will need to consider options that allow you still operate as a non-profit but cost much less to sustain. 

Build a Solid Foundation

The next step to take will be forming your mission statement. Your non-profit mission statement should embrace everything your organization stands for. Every decision or step you take must be in line with your mission statement.

Write Your Business Plan

You must draw up a business plan for your non-profit. Every corporate setup requires a business plan, however, your business plan should simply be following your mission statement. It should strictly follow the rules of non-profit organizations and should in no way contain any prospect of making financial gains.

Set Up Your Board

Your governing board will be there to help in running the activities of the non-profit. You will need to do some recruitment, training, and evaluation so they understand their roles or responsibilities.

Incorporate Your Non-profit

After you have carried out the above steps, you will need to officially set up your non-profit. Just like corporations, you are required to file your incorporation documents for a non-profit organization with your state. This gives your business legal standing.