Starting A Nonprofit

Nonprofits are generally a product of passion. The first statement by a founder is generally "By golly, somebody should do something about [fill in the blank]! I'm going to start a nonprofit so I can fix it!" 

How many people know that simple statement actually translates into (this is the short list): 

  • I will define a vision for a nonprofit organization

  • I will define the organization's mission to do something about [fill in the blank]

  • I  will do some basic market research to determine the actual need to do something about [fill in the blank]

  • I will do some pricing research to determine if I can sell services to do something about [fill in the blank]

  • I will do a one-page business plan to see if the mission is cost-effective and realistic

  • I will define the programs to do something about [fill in the blank]

  • I will do a budget for the programs

  • I will prepare a budget for proposed startup costs

  • I will prepare a budget for ongoing costs

  • I will recruit a board of directors

  • The board will approve corporate bylaws that meet State and Federal requirements

  • The board will approve the budgets

  • The board will determine possible sources of funding to cover the budgets

  • The board will agree to form a nonprofit corporation and select the required officers

  • I will form a nonprofit corporation in my home State

  • I will file for an EIN

  • I will open a corporate bank account

  • I will fund the corporate bank account

  • The board will approve and fund corporate insurance

  • I will convince the IRS that my new corporation is tax exempt (Form 1023 or Form 1023-EZ)

  • I will determine how to legally solicit donations

  • I will remember to file all sorts of annual reports

  • The board will hire employees and deal with unemployment taxes, withholding, and other payroll issues if we found the funding for payroll or the board will just find some volunteers 

  • Then, we will do something about [fill in the blank]