How to Start a Non Profit Business

It has been your life long dream to start a non-profit organization, but you don't know where to begin. To qualify as a non-profit organization (NPO or not-for-profit), a non-profit business needs to fall under the IRS tax exempt status (501C3).The following steps briefly outline the preliminary steps to help start and establish a non-profit organization. It's not as easy as it looks, but with determination, a dynamic mission, dedicated volunteers and a visionary leader you'll have all the tools necessary to start a non-profit organization.

Difficulty: Challenging

Instructions

Things You'll Need:

• Home office/office space
• Telephone
• Computer/fax equipment
• Online/Internet Access
• Non-profit resources
• Business/management resources
• Funds/operating budget
• Lead coordinator/founder
• Board of Directors
• Volunteer base/committee
• Grant Writer or grant-writing experience
• Fundraising expertise

1. Write a mission statement, articles of incorporation and Board bylaws. Enlist the help of experts in this area (PR/marketing practitioners, fundraisers, non-profit directors, lawyers and project management experts) for help if you aren't familiar with these documents. Research non-profit document templates online.

2. Apply for non-profit status (501C3) with your state's Secretary of State office. Research documents online (for most states, you can apply online but will have to process the actual paperwork in the physical office location). Research your state's Internal Revenue Service's (IRS) tax exempt criteria and apply accordingly. Follow directions specifically and pay application costs/fees.

3. Budget start-up costs and expenses and plan accordingly. Raising money cannot legally begin until your 501C3 status is approved by the Secretary of State's office.

4. Hire a grant writer or recruit a grant writing volunteer to help you with grant research and grant writing. Research local, state and federal grant opportunities and funding to help cover initial expenses for your organization.

5. Hire an accountant or recruit a volunteer with financial/budgeting experience to help you create your operating budget.

6. Build a Board of Directors from community resources. Recruit a strong committee to help you establish an action plan and fundraising goals. Enlist the help of local community leaders and business professionals. For example, if your non-profit is health-based recruit local medical professionals and health care workers who would be vested in your cause.

7. Recruit a viable base of dedicated volunteers who will help with office duties and administrative tasks (to save costs).

8. Hire a lawyer or recruit a lawyer who is willing to volunteer his/her time. Review all legal documents with a lawyer (especially IRS documents).

Tips & Warnings

• People think it's easy to start a non-profit organization, but many people don't have the non-profit or business background to properly start and run a non-profit organization. Research and talk to non-profit directors and volunteer leadership. Ask colleagues, friends and family for help and advice. Find community leaders who will support your cause and organization. Talk to local media contacts and generate media interest about your cause. Ask for in-kind donations from the community (donation of services like printing or web site hosting) in order to reduce expenses.
• It's an arduous process to start a non-profit organization and it won't happen overnight. If this is your life long passion, be ready to commit and dedicate your time and energy to your cause.