Starting a Non Profit Organizations? 4 Things You Need To Know Before Starting a Non Profit OrganizationHuman Beings in general faces great challenges from time to time both locally and internationally. Depending on the individual, some may choose to find the solution to the challenge either by donating time or money or by starting up a non profit organizations that will address the challenges at hand. This group of people know already that there is a need to be filled. At the end, different communities both local and international, will benefit from the work they have done.
Staring a Non profit organization is usually not hard thing to do. These organizations can be set up virtually in any field of human endeavor, and can be run by 1 to 100 people. Non Profit Organization are usually flexible and many are volunteer based.
Before Starting a Non Profit Organization, these are the key things you must be aware of before hand.
1) Be Happy.
Every Business comes with a level of risk. You should remember that there is no business without a risk. Always maintain the happy state of mind you had when you conceived the idea of starting a non profit organization. This will really help you in long way in recruiting people who share the same vision with you and are also ready to work with you. With still the same state of mind, define the vision and scope of work for the non profit organization you are planning to set up.
Draft a good mission statement that will explain what your organization does, who your organization is , the purpose of the organization and what the organization is trying to achieve. Having a good mission statement is a great start to any non profit organization and its future depends on it as well. Draft needs Assessment and Scope of work. This will also help to define the full business plan of the organization..
2) Be Organized.
For s non profit organization to see the light of the day, business plan should be their main guide. The business plan should make provision for growth, development and funding. Usually big non profit organization will need fundraising or donation from individual or public who share the same goal and aspirations with the organization.
Also you need to form a Board of Directors(BOD). Although number of people making up members of Board of Directors varies from State to State, it is a well known fact that right Board Members can break or make an organization. So you need to be careful when recruiting members of board and also make sure that they are in support of the mission of the organization and are ready to give in their time and talents as well.
Draft a Bylaw for the Organization and the board members will need to approve this bylaw. Bylaws is really necessary in non profit organization as this helps in governing the organization in general.
Finally, you need to open a bank account using the business name.
3) Be Official
After being organized, the next thing is to be a corporation. You need to choose the State you wish to be incorporated. This normally takes few weeks to be process. Note, you will not be allowed to apply for 501 c 3 with the IRS without first being corporate.
Once your organization is incorporated, then proceed to fill tax exempt status with the IRS. Click here to fill 501 c 3 application from IRS website. You will need to engage the services of a lawyer. This process usually takes a longer time to process because the IRS will want to make sure that your organization is operating with a charitable purpose and all funds are channel to the mission of the organization.
4) Be Funding
Once your organization is official, with the new 501 c3 status, you can start your fundraising by asking supports from individuals, communities, foundation. At the end, your organization will get support from a good number of different sources.
After taken all these in consideration, you can now move on to set up your own nonprofit organization.