Creating The Nonproit
Wednesday, August 31st, 2011You Are Starting a NonProfit?
Starting a nonprofit and running it well isn’t always the most easy thing you will ever do, however it is probably the most rewarding thing. I really like to think that starting a nonprofit and running it well can be comparatively simple. You have to remember starting a nonprofit organisation is essentially starting a company, so there is some work that comes with its startup. Having been involved in nonprofit work for over 15 years, I have seen many begin though starting a nonprofit only to be frustrated and give up partly through. Anything that is worth doing is worth doing right, and equally, worth the endeavour. Below are the steps you have to start a not for profit organization. Included are steps to start a nonprofit thru a fiscal sponsor that may prove to be much easier than starting an independent not for profit organization.
Steps in Starting a NonProfit Through a Fiscal Sponsor
Find an independent non-profit willing be a fiscal sponsor for your non profit project
Go thru the Fiscal Sponsors application process (details here)
There’s not a lot to starting a nonprofit through a fiscal sponsor. Lots of the process of applying falls on the organisation who is granting the mentoring.
Things you’ll need to investigate with the Fiscal Sponsor:
– Request and look over the Sponsor’s agreement
– Understand the application fee and if that’s a one off or annual amount
– Get specifics on administration charges and what that covers
– Understand how banking and access to funds works
– Inspect the services the sponsor provides
Steps in Starting a NonProfit That’s an Independent 501c3
1. Clearly define a particular problem and define the target population (the audience to receive services).
2. Conduct a Community Resource Inventory (a list of resources available to the target population). Research whether another non-profit is at present doing this work or something similar (in your area or a neighboring area).
3. Conduct social sadvertising. Poll the community to determine if there is an interest in the suggested services.
4. Identify the object of the organization and make a mission statement.
5. Recruit and form a board. Obtain a solid commitment from all members including an experience of what their role will be and the quantity of time they are willing to commit.
6. Determine state requirements for incorporation and obtain applications.
7. Draft articles of incorporation and bylaws (the organization’s “rule book”).
8. Hold primary board meeting.
9. Gain written approval of articles and bylaws, permit filing for tax exemptions, elect officials, set meeting schedule, establish and appoint members to committees, create a system of tests and balances, and take minutes.
10. File articles of incorporation with state and note any reporting requirements.
11. Develop a strategic plan (a bullet point plan that expresses a vision of the organization’s potential and where it is going) at least for one year at first, and get board approval.
12. Develop a budget and create an increase accounting system.
13. Develop a resource/fund development plan.
14. Establish a record keeping system for the organization’s official records (like corporate documents, board minutes, money reports, for example.).
15. File for IRS 501 (c) (3) federal tax exemption by submitting IRS Form 1023 and consulting Publication 557.
16. File for state and local tax exemptions (such as earnings, sales and property tax).
17. Meet the requirements of state, county and city charitable solicitation laws and get acceptable permits and licenses.
18. Obtain an employer identification number from the IRS by filing IRS Form SS”4.
19. Register with the state unemployment insurance bureau.
20. Make an application for a nonprofit mailing license from the US Postal Service.
21. Get all required insurance (such as directors ‘ and officers ‘ culpability, property, etc.).
Through a Fiscal Sponsor many of the steps to starting a nonprofit are eliminated making it quicker and better to make a charitable organization.
Despite the system you use starting a nonprofit, be determined and don’t let anything discourage you. The work your non profit can do around the planet will be worth what ever effort it takes to get it started. You can begin starting a non profit by following the steps above.
To find out more about starting a nonprofit, Click Here —->> http://SimpleNonprofit.com Scott Michael Ringo, an entrepreneur, is known worldwide as the nonprofit Guru and expert fundraiser because he helps others easily start and fund non profit companies all over the world. Through his work with non-profits worldwide, he helps others start and run successful non profits. Scott is a legacy builder and will help you build your nonprofit heritage.