How to Form a Successful Charity

A successful charity often takes on a role or fills a niche that is not already served by an established organization.

A successful charity relies on sound foundations, and there are many elements to consider when forming a not-for-profit organization. Not only must a fledgling charitable group be sure about its mission, it must also be sure it can attract the support it will require to thrive.

Instructions

Determine Your Mission

1. Focus on clarity. A new charity must be acutely aware of its mission. If one half of your organization is enthusiastic about one issue and the other half embraces another, your organization may lack the focus it needs to move forward. Determine what you stand for (and what you don't) in the beginning, so everyone involved can be on target.

2. Identify the community you wish to serve. You'll need to know its needs and how you can meet them as a charitable organization. If your organization isn't clear on whom it will be helping, your charity's clarity in purpose and mission may end up compromised.

3. Determine your scope of coverage. You'll want to assess your community and determine the demographic you hope to serve. You'll also want to see if the needs of this demographic are already being met elsewhere, so you aren't competing with another organization that could split your pool of potential volunteers and donors. If you can't offer something markedly different, you might be better off diverting funds and sources to the charity that already meets this need.

Consider Your Finances

1. Develop a reasonable budget. Include marketing materials, salaries and any supplies or services necessary to carry out your mission. You'll need project estimates and a realistic vision about how to meet financial needs to fund any change your organization hopes to bring about in your community.

2. Determine your culture of fundraising. Some charities are very active in this area, and some just accept donations when offered. You'll also want to have a clear idea of what types of fundraising ideas are right for your organization in order to conduct coherent campaigns.

3. Keep it above the board. When reporting your organizational income, you'll not only want to make sure you're reporting it accurately to all regulatory agencies, you'll also want to be sure you have the information readily available for donors and any parties who may want to contribute funds to your organization.

4. Develop your donation platforms. Will you take donations only via face-to-face transactions? Will you develop a form on your website? Will you take PayPal or credit cards or set up donors for monthly debits? You'll need to make this clear before you launch any campaigns to ensure that donors are able to get funds to your organization with no confusion.

Explore Your Legal Considerations

1. Get appropriate advice. You may want to consult with an attorney to ensure that you are complying with local and federal regulations and have the proper certifications to operate in your jurisdiction.

2. Pay attention to paperwork. You'll need to file the right forms when reporting income for taxes and hiring staff. If your budget allows, you may want to hire a bookkeeper to ensure you've got yourself covered.

3. Set up a board. As your charity grows, you'll need to determine internal policy. A board can make decisions that will keep your organization on target and true to its mission.

Conduct Consistent Outreach

1. Spread the word about your organization. The most successful charities are not just popular, they are also noticeable. You'll need to make sure your community is aware of what you're doing in order to receive support.

2. Develop a solid base of volunteers. Create a contagious culture of volunteerism by organizing appreciation events and allowing your volunteers to contribute to your organization in ways that satisfy them personally and utilize their strongest talents.

3. Cultivate relationships with other organizations for cross-referral. Organizations with different missions may access some of the same demographic your organization hopes to reach and can refer potential donors as well as people in need of what you offer.

4. Participate in events to build community presence. Participating in local fairs, festivals and events will show your community that you are vested in it and will raise general awareness.

References

• The Motley Fool; Start Your Own Charity; Dan Caplinger; Sept. 2006
• MSN Money; How to Tell Good Charities from Bad; Liz Pulliam Weston
• Gather; How to Start a Successful Charity; Fredrick Cox; March 2011

Resources

• Create The Good; How-to Guides