Table of Contents
WHAT IS A NON-PROFIT? 5
HOW IT’S DIFFERENT FROM FOR-PROFIT 6
DIFFERENT TYPES OF NON-PROFITS 7
WHAT TO CONSIDER BEFORE YOU START 10
WHAT IS YOUR MOTIVE? 10
DO YOU HAVE A MISSION STATEMENT? 11
HOW ARE YOU GOING TO SUCCEED IN YOUR MISSION? 11
COULD YOU DESCRIBE IT TO OTHERS IN 2 MINUTES? 11
WHERE ARE THE FINANCES COMING FROM? 12
CAN IT TRULY WORK? 12
WHO WILL MANAGE IT? 13
WHO WILL LEAD IT? 13
DO YOU KNOW HOW TO STAY COMPLIANT? 14
CAN IT SURVIVE? 14
GETTING STARTED 15
RESEARCH, RESEARCH, RESEARCH 15
CREATE A STRONG CORE 16
COMPOSE A WINNING BUSINESS PLAN 16
FIND SOURCES OF REVENUE 17
GIVE IT AN IDENTITY 18
SELECT A BOARD OF DIRECTORS 19
INCORPORATE YOUR NON-PROFIT 21
CLAIM TAX-EXEMPT STATUS 21
STAY COMPLIANT 22
Sample Content Preview
What to Consider Before You Start
It’s imperative that you don’t just rush into things and dive into a nonprofit venture head first. You need to assess the situation and figure out whether you have what it takes to build a successful organization that doesn’t rely on sales. Thousands of applications get sent into the IRS every year, but roughly 50% get declined.
That’s why it’s so crucial that you plan first. If you cover all bases and embark on your journey on the right path, you’ll be making a huge contribution to your society. There’s no denying that non-profit organizations are a necessity; governments simply cannot find an equal correlation between supply and demand. The responsibility also falls on successful non-profits to help those in dire circumstances.
To ensure that you’ve thought about the process thoroughly and have put a tick in all the non-negotiable boxes, we’ve put together 10 things that you must consider before you even get started.
What is your motive?
It may sound pretty obvious, but your motive is the foundation that your non-profit organization will sprout from. So, that’s the best first thing that you should establish. Are you creating a non-profit to build your reputation or to progress in your career? Are you pushing for social change on something that is close to your heart?
Are you supporting a religion that pushed you towards a better life? Are you attempting to solve a serious problem to make a difference in society? These are examples of some questions that you could ask yourself. Find the reason for why you’re doing it, and you’ll be able to progress from there.
Do you have a mission statement?
Without beating around the bush, every non-profit needs a mission statement. Without one, you’ll either fail to get your feet off the ground, or the organization will never be able to sustain itself. The mission statement is what guides you towards your goal, and constantly reminds you of what you set out to achieve.
The most effective mission statements are those that are short, concise and to the point. If you can describe your mission in a single paragraph, you – and the public – will easily understand what your organization is about. For instance, if you’re a public charity, who are you trying to help and how are you going to do it?
How are you going to succeed in your mission?
In the beginning, it’s fair to say that you may not have devised a solid plan that outlines how you’re going to reach success step by step. But, it’s vital that you have a complete idea of how you’re going to carry out your mission. The best chance you have of pulling off your plan is to find a proven strategy, rather than trying to be unique.
Yes, creating your own unique, original brand is great, but take a look at what other similar organizations have done to reach the top. Take a leaf out of their book. As well as that, liaise with your team and jot down some of your own ideas. At the end of the day, you want to accomplish what you set out to accomplish, right?
Could you describe it to others in 2 minutes?
In the business world, the fine art of describing your organization in roughly 2 minutes is known as the ‘elevator speech.’ It may sound like a bit of fun, but it’s actually critical to the lifespan of your non-profit. If you can’t make others understand what your organization is about in a limited amount of time, then how do you expect people to support it? Life is hectic these days; people don’t want to – or can’t – spend hours doing research on a potentially brilliant non-profit. Don’t try to repeat your mission statement verbatim, either. Just naturally articulate the ins and outs of your organization in about 2 minutes. Don’t start your nonprofit until you’ve got that down to a science.
Where are the finances coming from?
Making sure you have a sufficient supply of money to get started, and then survive difficult financial times is key to longevity. If you don’t have an adequate budget and in-depth breakdown of costs, you’ll seriously struggle. So, the first aspect is to determine how much it’s going to cost to get up and running.
Once you’ve figured out the cost of everything, you then need to compose a strategy of how you’re going to fund it. Nowadays, there’s an array of options that make it easier for non-profits. If you aren’t able to tap into your own bank account, you can seek a grant, search for donations, encourage people to sign up as members and host fundraising events.
Can it truly work?
Find a moment of silence and ask yourself whether you can logically pull it off. It’s no good trying to wing it because that will only take you so far, which is not practical whatsoever. Do you have enough spare time to allocate to your venture? Does your idea fall into one of the categories that the IRS approves?
Is it a strong idea that people will be able to get behind on a widespread scale? Do you have the determination, motivation, inspiration, and dedication to giving it the effort it desires? A non-profit requires the same attributes that a for-profit does, so you need to be genuinely prepared for a challenge.
Who will manage it?
When your organization begins its life as a small non-profit, the owner and the person running the day-to-day side of the business will probably be the same person. Regardless of that, you need to make sure you have someone in charge of the organization that is capable of carrying out your mission, increasing your exposure and handling the basics.
On top of that, they also need to be able to manage your programs, because dealing with employees and volunteers takes specific leadership skills. Moreover, when your organization starts to grow into something bigger, you’ll want to designate a person to manage the business, so duties don’t overlap.
Who will lead it?
That leads us to our next thought – who will lead your non-profit organization? As all non-profits are publicly held entities, you’ll need to carefully select a Board of Directors to lead your organization. Please put emphasis on the “carefully select” part too, because you don’t want to gather random individuals just to meet government compliance.
You want to choose people that actually care about your mission will have an impact when it comes to fundraising and will consistently donate to the cause themselves. A Board of Directors should bring with them a ton of guidance, a wealth of experience, plenty of energy and a lot of wisdom.
Do you know how to stay compliant?
While your non-profit will be exempt from any taxes, it’s important that you don’t start believing you’re exempt from compliance as well. Just like any other business, your organization will be under the same level of scrutiny from the state and federal agencies, because you’ll need to comply with the regulations that are set out by the governing bodies. Attach attractive traits to your non-profit from the beginning, such as transparency, honesty, and trust, because that’s what will lead you towards success. Handle payroll issues, IRS Form 990s, and 501(c)(3) restrictions properly, and always keep your organization above board to avoid any punishment. If you need help, call on the Foundation Group. Can it survive?
Along the way, you’ll face a plethora of obstacles, hurdles, and challenges that you’ll need to overcome. Your organization must be robust from the bottom to the top and possess a strong amount of resilience if you want to survive in such a competitive and unforgiving society. So, the question is – is your idea cut out to survive?
Beneath the surface, you want to establish an effective, proven strategy that you can follow. But, to the public, you want to build a brand that stands out from the crowd and is creative when it comes to fundraising to encourage people to take part. If you don’t generate the revenue, your organization will quickly meet its demise, so make sure you can survive hard times.Other Details
- 10 Articles (PDF)
- 1 Ebook (PDF), 27 Pages
- Posters, Infographic, Checklist, Mini Report
- Year Released/Circulated: 2018
- File Size: 7,512 KB
[YES] Can use
[NO] RESELL OR GIVEAWAY