Steps to Starting a Fund-Raiser Business
Fund-raising can be a challenging yet rewarding business to get into. When starting a fund-raising business, following a logical progression of steps can help you stay organized and increase your odds of success. Since there will be plenty of competition when it comes to raising funds for various types of causes, having a solid plan in place can help set your fund-raising business apart from your competitors.
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Select Your Niche
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The first step in starting a fund-raising business is selecting the niche or area you want to focus on. Your niche should be your "reason why" you are starting the fund-raising business in the first place. It should a cause that's near and dear to you -- something you are truly passionate about. Examples of niches you may want to consider are cancer research, childhood obesity, animal cruelty, women's rights or helping the indigent.
Write a Business Plan
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The next step in starting your fund-raising business is putting together a business plan. There are several important components when writing a business plan for a fund-raising efforts. First, write a business summary, which describes your organization, the cause you are supporting and the goals and objectives. Next, include a "market opportunity" section, which describes the unmet need your fund-raising business will fulfill as well as the competitors you'll face in the market. Then, include a customer analysis section in which you describe in detail the people who will benefit from your fund-raising business. Finally, outline an implementation plan, in which you describe how you will finance and market your fund-raising business.
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Register With Your State Government
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Register your fund-raising business by calling your state's Secretary of State. There are different requirements for starting a fund-raising business in each state, so check with your state to determine their requirements.
Register With the Federal Government
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Obtain an employer identification number, or EIN, by going to the U.S. Internal Revenue Service website.
File for Tax Exemption
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Contact the IRS and determine whether or not your fund-raising business has tax-exempt status. If so, ask what form you need to fill out -- 1023, 1024, 1028 or 8734. Fill out the necessary form.
Start Marketing
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Once you have registered and determined whether or not you have tax-exempt status, you can begin marketing your fund-raising business. There are plenty of ways you can do this. Use email marketing to begin building long-term relationships with donors. Spread the word to friends and family on social networking websites. Send a direct mail campaign to prospects who you have identified. Create brochures and other printed materials to hand out to people you meet. Attend networking events related to your cause to help spread the word about your business.
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References
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