Running a nonprofit organization is no easy feat, and even just starting one is not as simple as you may think. If you’re looking for information on how to start a nonprofit organization, you need to be prepared to put in the grunt work.
Luckily, anyone who’s looking to start an NPO is probably willing to work hard to get their organization up and running. If you’ve come to this blog post, you’re already on the right track.
In this post, we’ll be explaining the 4 important steps you need to follow as you start your nonprofit organization venture. We’ll also give you a few tips for success!
Keep reading to find out all you need to know about the initial stages of a new NPO.
So, let’s first recap what a nonprofit organization is, and what it means to start one.
A nonprofit organization is a legal entity that raises money and uses its income and profits for its mission. It operates for social or public benefit, and not for the benefit and profit of its owners and founders. Its mission statement and vision are ones that are dedicated to benefiting the community.
Starting a nonprofit organization, then, is a commendable endeavor. If you’re looking to start one, but you aren’t exactly sure how to go about the first (crucial) steps, we can help you to better understand and execute them!
If you want to know how to start a nonprofit organization, here are the four key steps you need to follow:
The very first thing you need to do when starting an NPO is to do your research. Find out what your community needs and where there are shortfalls in terms of funding and/or commitment to a certain cause. Then, do further research on what exactly is needed.
Ask yourself this question: Does your mission align with a need in the community? While there are millions of nonprofit organizations out there, the answer is still often ‘yes’.
So, this step may be a bit obvious but it’s very necessary. You must first find a cause that is in need of help.
The next thing you need to do is make sure that you build a strong foundation (as the founder) from which to work. Structure is important in any organization, and no less so in an organization that puts the needs of the community first. Use your research to inform your planning.
This step includes coming up with a name, a mission statement, a business plan, and a way in which to market and bring attention to your nonprofit.
You are far more likely to find donors and sponsors if you have an airtight mission statement and solid foundation to present.
However, it’s not all about the foundation and mission statement. You actually need to find people who are ready and willing to help you achieve your vision for the needs of the community that you have identified. Here is where volunteers, staff, and board members come into the picture.
For volunteers and staff, try to find people who have just as much passion for the particular cause as you do. For board members, include people or organizations that are active in this part of the community already, and who are willing to participate and offer resources.
The last step (before you actually start running your NPO and start fundraising) is to get all of the legalities, forms, and registrations sorted. You need to register your nonprofit with your state, file for an employer identification number with the IRS, and file for tax-exemption status.
Remember that there are filing fees associated with sorting out the legalities. And, once you’ve completed them, you will still need to engage in ongoing compliance in order to keep your tax-exempt status. This means familiarizing yourself with the laws of the state and continuing to keep track of receipts and submit reports.
So, now that you know the four steps you need to complete before even launching your nonprofit organization and putting together a fundraising plan, we can offer you some great tips for making sure that this process goes off without a hitch:
As you can see, starting a new nonprofit organization is not as simple as fundraising. Before you even begin to start raising money for your cause, there are a number of steps you need to complete in order to ensure legality as well as a foundation for future success.
Of course, raising funds is the ultimate goal. Once you have completed these steps, consider using BiddingOwl to boost your fundraising success. BiddingOwl is a free nonprofit charity auction software that allows you to run your NPO auctions online and fundraise easily!
For those just starting out with their nonprofit organizations, we wish you the world of luck. Check out the rest of our blog to find even more tips, tricks, and tools for running and managing a successful NPO.