How to Establish a Non Profit Foundation
World hunger. Homeless victims of natural disasters. An HIV/AIDS pandemic that spreads from continent to continent. Our planet has no shortage of dire events, and when you examine the magnitude of these events, you might realize there can't be too many nonprofit foundations to handle them. If you've identified an area that begs for your leadership, this could be the time to take matters into your hands and start an organization to help turn the tide on an issue you care passionately about. You'll make a difference, leave a legacy and you'll likely discover how generous people can be when you ask for their help.
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Things You'll Need
- Bylaws
- Mission statement
- Nonprofit incorporation status
- 501(c)3 sanctions
- Board of directors
- Volunteers
Instructions
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1
Conduct due diligence by finding and listing all of the existing nonprofit foundations already dedicated to the problem or issue you are seeking to remedy. Your job will be to find a way to differentiate your approach from those nonprofits already working to address the concern.
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2
Look into the Internal Revenue codes that apply to nonprofit foundations and decide into which sub-category of the 501(c) 3 tax code yours would belong. There is a filing fee for obtaining the tax status, and until you have received approval, you can make plans for your organization but you can't seek donations or apply for grant money.
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3
Contact an attorney or visit Internet sites established to help individuals and foundations obtain and complete the paperwork associated with incorporation. You'll be required to draft articles of incorporation and complete a number of forms to meet all IRS requirements for a nonprofit organization. If you have questions about any aspect of filing for 501(c) 3 tax status, contact the IRS at 1-800-829-4933.
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4
Summarize the heart of your foundation's reason for existence and use that summary as a platform for crafting a concise statement that describes what the nonprofit hopes to accomplish. The best way to write a mission statement, if you haven't composed one previously, is to analyze the mission statements of other nonprofits, then craft your own from those examples. Never copy anyone else's mission statement.
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5
Begin to set up business and operating plans for your foundation once you receive documentation from your Secretary of State's Office or federal authorities affirming the approval of your application for nonprofit status. Interview potential executive directors with the ability to manage day-to-day operations of the foundation under the authority of the board of directors.
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6
Draft bylaws for your nonprofit foundation. Again, using another agency's bylaws as a template is the way to begin. On average, a rudimentary set of bylaws includes seven articles and sub-sections within each article that specify every aspect of the foundation's structure, from membership to board of directors and from committee formation to term limits.
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7
Begin doing business under your new foundation's name as soon as you have received your federal and state tax identification numbers. Purchase supplies, set up bank accounts, seek grant monies, start marketing and promotional efforts and set about letting your community know what this new foundation plans to do in the future.
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8
Recruit a board of directors to oversee all aspects of business. Governance by your board will be outlined in the bylaws you drafted, so there's a system in place to help you find, install and merge your board from a bunch of individuals into a lean nonprofit machine. Hand over the list of executive director candidates (Step 5) and allow them to choose their favorite to manage the foundation's efforts.
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9
Put together an aggressive plan to lure an eclectic band of volunteers to spearhead foundation matters. Seek a variety of talent to fill gaps your board is missing. Lavish your volunteers with praise and you'll quickly learn that the rewards most treasured by volunteers are gratitude and appreciation.
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