How to Start a Non-profit Organization
If you’re wondering how to start a non-profit, you must have a great plan for what your non-profit will entail, what kind of services it will provide and how it will achieve its goals. That’s great! Non-profits fulfill an essential role in our societies and because their goal is not churn out profits, they are able to cater to community needs way more effectively than a business could. Because of this, the government not only exempts them from certain taxes but also provides grants and funds to support their efforts.
URstore has five tips for you to get your non-profit organization set up:
1. Do your homework.
If your goal is to support a cause, it shouldn’t matter whether it’s your non-profit or an already established organization that’s working towards that cause. Find out if there are existing non-profits that deal with the cause you’re passionate about. If you find one, work for it or start a local chapter for it. Your goal for starting a non-profit should most certainly not be to generate a salary for yourself because truthfully, your organization may not even receive the funding it needs to operate on a basic level.
2. Write a business plan.
Like for-profit businesses, non-profit organizations must have a mission statement to put in writing what its purpose is and what kind of needs it will fulfill. Besides the mission statement, make a list of key people involved such as the board of directors and board of governance. It’s also important to create a budget for the first year, set up a marketing plan and list your sources and ideas for fundraising.
3. Register your non-profit organization.
This are a few steps to registering and the requirements depend on the bylaws of the city you’re going to establish your non-profit organization. First, you must register its name. Next, you must incorporate your non-profit organization by filling out the necessary paperwork.
4. File for tax-exempt status.
With the business plan ready, you can now apply for a tax-exempt status. Being a non-profit organization, you’re not required to pay taxes so long as you have been approved by the federal revenue agency. It’s important to note that your organization can still make a profit so long as it doesn’t benefit any proprietor, member or shareholder. The key is to reinvest the profit or expand your services and increase the spending budget.
5. Create a fundraising plan.
Your fundraising plan will consist of goals, costs, timeline and sources. Creating a solid plan will mean setting measurable goals and assigning deadlines to each goal. There can be two types of sources for fundraising: fixed and variable. The fixed ones will be sources that have committed to support a cause led by your organization for a set amount of time. The variable sources will be one-time donations as well as any other grants you may receive over the course of the year.
