Launching any type of business entity requires a focused effort to ensure every base is covered. Starting a nonprofit is probably the most complicated, partly because of the federal requirements that come with obtaining nonprofit status, partly because you have to find a way to cover expenses beyond what you can afford. do through the work itself. There are dozens of steps to go from idea to launch, but here’s an overview of the first five steps to take on your journey:
1. Assess feasibility
Before you commit significant resources to your nonprofit idea, do your due diligence to make sure the idea is viable AND won’t flood your community with repetitive programs and services. Not all nonprofit ideas meet the cost-benefit test; some ideas are too expensive for the expected result. This is hard for some passionate and committed aspiring founders to accept, but it’s best to acknowledge that fact. prior toyou put thousands of hours and dollars into an organization that has no chance of surviving. Be sure to look for other organizations that target the same population; While competition can be healthy, in a world where survival depends on donations from the public, competing organizations can drown each other out pretty quickly.
2.Network
Get involved in your community and start building relationships with active volunteers, nonprofit leaders, and professionals (Big 5 professionals: lawyer, accountant, banker, insurance agent, real estate agent) who have experience working on nonprofits. profit. You’ll need these resources at some point during the startup process, and the stronger your relationships, the more likely you’ll find the right person to help you solve your problem.
3. Recruit Initial Board
You will need a strong and committed board of directors to help you with all the paperwork and start-up planning. Look for people who complement your skills, not just your best friends. A group of people who are good at the same things and look at the world from the same perspective will have trouble identifying opportunities and threats along the way. Different viewpoints require everyone to think harder and justify their actions more consistently, resulting in a better developed plan and a stronger commitment to agreed-upon ideals.
4. Planning, Planning, Planning
Once you have a team committed to the same goal, the real planning work begins. Everything from scheduling to accounting, from marketing to managing volunteers needs to be planned. Like any other business, every aspect matters, and leaders of organizations must have enough knowledge and understanding of every aspect of business fundamentals to be able to make reasoned and informed decisions for the organization.
5. Paperwork, Paperwork, Paperwork
There are several steps to developing a paper record for a nonprofit organization. From registering the nonprofit corporation with the state to applying for federal tax exemption with the IRS, each step requires time and focus, and most will need to be discussed and approved by the board. State paperwork typically takes just a few weeks to prepare, file, and receive, but the IRS application can take months, so the sooner you start, the sooner you can start working to save the world!