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Steps to starting your non-profit organization
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Many people who desire to contribute to making the world a better place consider the option of starting a non-profit organization. However, as with most ventures, a starting point is not always clear. Here, I am going to give a few tips for launching your own non-profit organization, with hopes of helping you fine-tune, or even reconsider, your idea.
First and foremost, I'd like to ask you to think about whether or not the world (or at least your local community) needs your non-profit. Oftentimes, people like to duplicate ideas that already exist with the thought that they can do it better. Maybe you can....but can you also convince funders that you can do it better? If not, it's going to be mighty difficult to get anyone to back you financially. For instance, if your idea is to launch an after-school program, what would make someone want to give you their money, as opposed to the Boys & Girls Club, which has already been operating effectively for several decades? If your idea is a mentoring program for youth, can you really convince someone that you can do it better than Big Brothers/ Big Sisters? This is where a lot of people get stuck. If you can't find a way to distinguish yourself from what already exists, and a plan on how to convince donors to support you in your effort, then you have a problem. If you can, then move along to the next step!
Develop a mission statement. A mission statement basically describes the charitable purpose of your organization. It can be anything from a few sentences to a full paragraph long, but should answer these basic questions:
What will be the primary benefits and services to clients?
Which groups of clients will benefit from your services?
What values will guide how your nonprofit will operate?
How would you like others to view your nonprofit?
What values will guide how your nonprofit will operate?
How would you like others to view your nonprofit?
Your mission statement should also be compelling, as it will be used in all published materials, funding requests and public relations outlets for your non-profit. It should also portray how your organization is distinct from others.
After you've squared that away, you're now ready to being garnering support for your organization. Usually, this starts in the form of a Board of Directors. You can choose to have a formal Board of Directors, or an informal Advisory Board to help guide you along the way. As tempting as it may be to simply add your closest friends and family members to the board, my advice is to solicit people who have the knowledge and skills that can help you get started. This would be accountants, lawyers, fundraisers, grant writers, etc. A good resource for finding board members is BoardSource. Here, you can post information about your organization and be matched with people who are as passionate about your cause as you are. You'll also find tools to help manage your Board and keep them engaged.
If you don't happen to get a lawyer on your board who can help you work through the kinks in your filing process, you will want to get one to give you advice/guidance in filing your articles of incorporation (if you choose to incorporate), filling out your application to the IRS for your tax-exempt status, etc. Although you can do all of this yourself if you're generally good with legal jargon, you should probably at least get an attorney to look it over after you're done.
Your next step should be to get a bank account just for your organization. UNDER NO CIRCUMSTANCES should you ever accept money for your organization through your personal bank account. I can't tell you how much trouble this can lead to!!
Next, you should set up a basic bookkeeping system. Here is where having an accountant/finance person on your Board could be very helpful! During this phase, you should also work to develop a budget. This will give you a ballpark figure on how much money you will need in order to move forward and start your programming.
Fulfill any charitable solicitation law requirements. If your organization’s plans include fundraising, be aware that many states and few local jurisdictions regulate organizations that solicit funds within that state, county, or city. Usually compliance involves obtaining a permit or license and then filing an annual report and financial statement. Contact the state Attorney General’s office, the state Department of Commerce, state and local Departments of Revenue and county or municipal clerk’s offices to get more information.
If you are an organization that has a building/location, or drives anyone (children, elderly) as a part of your programmatic offerings, you will likely need liability insurance, property insurance and the like. After you hire staff, you will need to figure out what benefits you will offer them, and be prepared to have worker's comp insurance, etc.
You will then need to draft your articles of incorporation and bylaws for your organization. The level of detail included within these documents varies, but your Board will need to approve these documents before filing with your state.
After your Board approves your Articles of Incorporation and Bylaws, you will need to file them with the Secretary of State's office so that you can become incorporated. (Please see link below).
After you have filed your organization with the state, you can apply for federal tax-exempt status with the IRS, so that you don't have to pay federal taxes. You can also file to become exempt from paying state taxes by submitting an application with the state Attorney General.
If you intend on doing bulk mailings for your non-profit, you will want to get a mail permit from your post office so that you can get postage discounts on bulk mail.
If/when you hire employees, you will need a federal employer number, which you can get from the Secretary of State's office. You will also need to develop a payroll system, employee handbook, etc.
Finally, you will need to develop a fundraising plan. This is also when a good fundraiser on your board can come in handy, but if you don't have one, you will definitely need to consider how you plan to raise the money to keep your organization growing. Will it be through grants? If so, then investing in a god grant writing course would be a good starting point. Will it be through individual donations? Events? etc. There are some really great fundraising resources that you can find on the web, several or which I have listed below.
One of the greatest resources available in Atlanta is the Foundation Center, located near the Georgia State University campus in the historic Hurt Building. The Foundation Center offers free classes on grant writing, fundraising, program development and much more, as well as a library of resources for individuals to use on site. This would be a great starting point if you're looking to start or grow your Atlanta non-profit.
These are just some of the basics. Starting a non-profit organization can be a daunting task, but if it will help to improve our community, by all means go for it! Please continue to check back here for up and coming ideas and resources that can be vital to your success in the non-profit world. Until then, I wish you the best of luck!
For more info:
Tax Information for Charities and other Non-profits
Basic Guide to Non-profit Financial Management
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