Starting Non Profit Organizations

Preparation

Most non profit groups are formed to promote a cause, fill a social need or serve a group. While the staff of a non profit organization receives a salary and operating bills are paid, any revenue left over is poured back into the organization. Defining the mission of the group and setting up a basic business plan that includes the purpose of the organization, who it will serve and how it will provide those services, is the first thing that needs to be established. This initial mission statement can serve as the organization's mission once the company is formed. It also drives the next steps in the process.

Call on others to join the group. In order to incorporate, a non profit organization must have a board of directors. Look for board members who can commit to a set number of hours each month for meetings and who bring expertise to the group that the newly formed organization can utilize. A board member who is an attorney, for example, can help decide whether to incorporate as a 501(c)(3), which allows the group to maintain non profit status with the IRS and be exempt from paying taxes. The lawyer can easily file the appropriate papers with the proper state and federal agencies. Tax-deductible status should be explored if the group plans to seek grants and wants donations to be tax refundable.

Work with the board to draw up articles that describe the nature of the work that will be performed by the new non profit. Incorporate the initial mission statement and expand on the duties of each staff member and the population to be served. Open a bank account and find office space, if necessary. If initial funding is required to start the business, seek grants or co-sponsorships from another non profit group to kick start the operations. Once the IRS exemptions are approved, file with the state for property tax exemptions and with the post office for bulk mailing status. Get a solicitation license from local city departments.

Begin recruiting participants for the projects or services the group intends to serve. Join local networking groups to get the word out about the services now available through the newly formed non profit. Publish newsletters designed to educate the community on the available resources. If grants have been procured, begin to implement the projects for which the grants were allocated. Hire necessary staff to run the office and provide services. Follow the original business plan and articles of incorporation adopted by the board.