How to Establish a Charity Organization
To establish a charity organization, work with a team of board members early on so they can help you decide on the mission and offer strategic planning. You might decide to file your articles of incorporation or apply for nonprofit status, each of which has its legal and financial benefits. It can take a few days to start a charity; making it official with the state and federal government can take several months to a year.
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Instructions
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1
Decide on your mission. Ask yourself what need your group will serve in your community. Will it relieve hunger in low-income communities? Offer free tutoring services to disadvantaged children? Write a draft mission statement, which you will present to potential board members. Your board members will probably want to help you finalize the mission statement, so remain flexible as to the specifics.
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2
Recruit board members. Contact churches or other community service groups to see if they know someone who would like to participate in a charity of your sort. Check with community service departments of local businesses where there might be employees seeking volunteer-leadership roles within the community.
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3
Name your organization. To avoid choosing a name that has been protected by another business, visit the United States Patent and Trademark Organization's Web site (see Resources). You can also check with GoDaddy.com or Name.com to see if a domain name is available you can use for your website.
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4
Develop your strategic plan. Your strategic plan will list your board members, your mission, the organization's objectives and the impact you expect to make in the community. It will also include a budget and sections pertaining to how you will recruit volunteers, raise funds and engage your constituents.
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5
File your articles of incorporation. Check with your Secretary of State's office to see if this is a necessary step for your organization. It is not necessary to do this when filing for nonprofit status with the IRS.
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6
Follow the proper steps with the IRS. Although charity groups can operate without nonprofit status, it's a good idea to apply anyway. Your organization will be tax-exempt and protected from personal liability. You'll need to acquire a Federal Tax Identification Number and decide on what nonprofit status your organization will be. After that, you can complete and submit Form 1023 (see Resources).
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Tips & Warnings
Steps 5 and 6 will require start-up costs that depend on where your organization operates and the size of your budget. Ask a CPA to help you develop your budget.
