How to Start a Non Profit Program
The first question to answer when starting a non-profit organization is whether or not there is a need for your program within your community. Research the need you're hoping to meet. Most states will reject non-profit applications if there isn't a clear and immediate need identified, and one that isn't already being met by other organizations. Consider if you will be able to better reach your goals through a for-profit company or through other avenues. Once you decide to start a non-profit, there are standard procedures to follow, although each state has its own guidelines.
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Instructions
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Create vision and mission statements. Draft a vision statement, which is the big-picture, long-term concept of what your organization will look like in the future. Your mission statement flows from your vision and is the tactical, everyday approach to how your organization will achieve your strategic vision. These statements shouldn't tackle pedestrian issues, but rather address the extraordinary---how your organization will be exceptional in its work to meet the needs identified.
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Recruit and appoint board members. Have an active list of potential candidates prior to starting your non-profit. Create a standard application or interview questionnaire. Make sure that candidates share your own vision and that they have the time and commitment necessary. Avoid, if at all possible, appointing close friends or family members. Identify your organization's needs---such as fundraising or public speaking---and choose people to fill those needs. States have different board member requirements, such as the number, residence status and age.
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Hire an attorney and/or accountant. You may or may not need to do this, depending on the make-up of your board and your membership. You may have capable people in your midst.
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Open a bank account. Find a bank that's experienced and has an understanding of non-profit concerns.
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Get insurance. If you plan on hiring employees, or you have property owned through the non-profit, you'll need health, worker's comp, liability and property insurance.
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Draft the articles of incorporation. This is perhaps your most important document. It's a legal document that includes the organization name and address, the registered agent, name of the incorporator, directors' names and addresses, a statement of purpose, disclaimers and the powers vested in officers and members.
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Create bylaws. Bylaws address officers' duties, term lengths and election procedures; meeting and committee issues; voting methods; financial and fiscal matters; potential conflicts of interest; and amendments. Keep the bylaws vague enough that you don't paint yourself into a corner and risk violating your own rules. Avoid declarations such as, "Committee X shall meet on the third Wednesday of each month." Writing "once a month" is sufficient.
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File papers of incorporation. You need to locate the proper state agency with which to file your incorporation paperwork. Florida, for example, requires filing with the Florida Department of State, Division of Corporations. Start with your secretary of state or similar agency. Filing fees vary from state to state, but expect something in the neighborhood of $100.
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Obtain an employer identification number (EIN) from the IRS.
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File for federal tax-exempt status.
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Apply for state and local tax exemptions if your IRS tax-exempt status doesn't automatically qualify your organization. In many states, this is an automatic designation as soon as you receive IRS tax-exempt status. Check with local government agencies for guidelines.
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Apply for any solicitation or fundraising licenses you'll need. In Michigan, for instance, you have to register with the Office of the Attorney General to obtain a Charitable Solicitation License by completing an Initial Charitable Solicitation Questionnaire and returning it to the Attorney General's Charitable Trust Division.
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References
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