Guidelines on How Start an Orphanage in Arkansas

Starting an orphanage that provides adequate care for children is expensive, observes University of California economist Richard B. McKenzie. Opening an orphanage in Arkansas requires making many decisions about the business aspects of the facility to determine what licensing the state will require. In turn, different types of orphanages have various avenues for obtaining financial backing.

Organization and Incorporation

Decide if you want to incorporate your orphanage. You may incorporate as a nonprofit corporation. Prepare a copy of your articles of incorporation, bylaws, board roster and names and addresses of the officers for your incorporation filing and license application. File for incorporation with the Arkansas Office of the Secretary of State. You may do so electronically by going to ark.org and searching for "Corporations Online Filing System." You may also file for federal tax-exempt status under Internal Revenue Service Section 501c3. Note that you may only solicit funds if you are operating under a religious organization that enjoys tax-exempt status or after your orphanage has received the same on its own, according to the Arkansas Code Ann. § 4-28-401.

Financing and Insurance

Prepare proof of your orphanage's financial soundness. Include your budget showing you have sufficient resources to operate for a period of six months.

Purchase general and professional liability insurance. Understand the potential liability of running an orphanage as well as the potential professional liability of your employees in charge of the care or placement of children.

Program and Staffing

Determine your orphanage's services. Arkansas defines minimum licensing standards for child welfare services, such as residential child care, emergency residential child care, independent living and child placement for adoption, foster care, therapeutic foster care or residential care. State the types of services you are offering, program of care, intake policies and a written plan for providing health care services to the children in your orphanage. The Arkansas standards require that you write a program description based partly on your orphanage's services.

Hire an administrator and one or more caseworkers, depending on the number of children your orphanage is going to care for, as well as a supervisor if your orphanage is going to provide child placement services. Prepare a list of your employees, along with documentation verifying their training and qualification for your license application.

Facility

Pick a location for your facility and prepare a diagram, including room dimensions. If you are offering residential childcare services, obtain zoning, fire and health department permits from the appropriate Arkansas state agencies.

Licensure

Obtain the appropriate license for your orphanage from the Arkansas Department of Human Services, Division of Child Care and Early Childhood Education's Placement and Residential Licensing Unit (2017 E. Race St., Searcy, AR; 501-268-2714). File for exemption from the licensing requirement if you are operating solely under a religious organization and if your organization enjoys tax-exempt status. Send a written request to the Child Welfare Agency Review Board at the Department of Human Services. Provide documentation that your facility has met fire, safety and health inspection standards.

References

• "The Wall Street Journal"; The Best Thing About Orphanages; Richard B. McKenzie; January 2010
• Arkansas Department of Human Services; Minimum Licensing Standards for Child Welfare Agencies; January 2011
• Arkansas Office of the Attorney General: Synopsis of Charitable Registration and Solicitation Statutes
• Arkansas Department of Human Services; Minimum Licensing Standards for Child Welfare Agencies; August 2006
• Arkansas.gov: Corporations Online Filing System