How to Become a Not-for-Profit

Non-profit businesses usually serve a charitable purpose.

Starting a non-profit organization requires a lot of forward planning. First, ask yourself if you are cut out for running a non-profit organization. Many of the same headaches you would deal with when running a business apply to running a non-profit organization. An original idea for a non-profit is also required; you should find a need that is not being served in your community as your focus. Once you decide to form a non-profit, the work begins.

Instructions

1. Create a mission statement for your business. Write down the benefits and services you will provide, who will benefit and your organization's values.

2. Contact a business planner or do your own research to help you decide which type of non-profit organizational structure best suits your specific non-profit mission statement. Incorporating a non-profit organization separates the finances of the organization from your own.

3. Contact a lawyer to help you set up a non-profit status with the IRS so that your company is tax exempt. Do not attempt to do this on your own if you are not confident in your accounting and filing abilities. Trouble with the IRS will sink your business.

4. File for incorporated non-profit status in your state. Contact your State Secretary of State or the Attorney General to file as a non-profit organization.

5. Apply for an Employer Identification Number (EIN) if you will employ staff at your organization. Apply through the IRS website. The link is provided in the resources section.

References

• Charity Village: Starting a Nonprofit or Charity
• Labyrinth: How to Start a Not-For-Profit Business
• Society for Non-Profit Organizations: Starting a Non-Profit Organization

Resources

• IRS : Apply for an EIN