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]