How to Start a Not-For-Profit Ad Agency

A not-for-profit ad agency provides consultations and marketing services without accruing annual profits. Not-for-profit agencies utilize advertising fees and commissions to hire personnel, maintain facilities and purchase supplies. You need to combine your knowledge of ad agencies and non-profit organizations to start a sustainable business.

Instructions

Difficulty: Moderately Challenging

Contribute Socially Conscious Advertisements to the Community

1. Begin your not-for-profit ad agency with a website highlighting your mission and services offered. You need to add ongoing and past projects for the benefit of potential clients. You should use this website as a virtual business card for non-profit organizations in your community and around the world.
2. Hire a small corps of dedicated advertising professionals who share your vision for the agency. You will need a production artist, a client representative and an office assistant at the start of your agency. It is important to make clear that every staff member will do office and promotional work.
3. Shop for a storefront space near burgeoning businesses within your community. You can decrease the initial cost of advertising and gain good word of mouth by setting up your agency close to an upscale mall or office building.
4. Make contact with every non-profit organization within your community as you start your agency. You should offer discounted rates for non-profit businesses to increase your initial work load and provide an alternative to high-priced, profit-making agencies in town.
5. Invite volunteers and college interns from the community to take care of administrative tasks around the office. You can assign loyal volunteers to street teams and public event duties to help increase your agency's public profile. Your staff can train interns about socially responsible advertising while gaining the benefit of their youthful exuberance.
6. Research state and federal grants that are meant to aid not-for-profit organizations. You should focus your attention on grants that help agencies that work on specific types of projects, such as urban development and conservation.
7. Apply a rigorous review process to for-profit clients who apply to use your services. You should set the tone for your business by working with only those for-profit businesses with a good history in the community and products that fit into your overall mission.

Tips & Warnings

• Assess the limitations of 501(c)(3) tax-exempt status for your not-for-profit ad agency. The Internal Revenue Service has strict guidelines for non-profit organizations that apply for this status (see Resources below). Charities that engage in limited political advocacy can avoid taxation under the state and federal law.