People get inspired daily to serve their communities in various ways. One of the best options to get involved is to start a nonprofit organization.
It isn’t easy to start and maintain a nonprofit company, but this structure can help more people than your hands and feet alone.
These steps can help you have a successful experience.
Step #1: Do Your Research
Before starting a nonprofit organization in your community, try talking to people to see if there is a demonstrated need for the work you want to do. It might make more sense to join an existing group that accomplishes something similar. Everyone needs volunteers, after all.
Step #2: Build the Business Foundation
Nonprofits need multiple people to get involved with its launch to have it be a successful experience. You’ll need to create a detailed business plan, design organizational structures, and construct a three-year budget. Marketing, development, and fundraising are essential components of this stage.
Step #3: Get Incorporated
A nonprofit organization must file to be a business, just like for-profit companies. That means you’ll need to prepare and adopt bylaws, have a conflict-of-interest policy, and prepare compensation procedures. You might need a certificate of disclosure, articles of incorporation, and proof of corporate name to continue. Filing fees are always associated with this process.
Step #4: File for Tax-Exempt Status
Nonprofit companies in the United States can file for tax-exempt status when they meet specific criteria. You’ll want to review IRS Publication 557 for more information about this step.
Step #5: Maintain Ongoing Compliance
Once you’re in business, you must comply with local, state, and federal rules for maintaining your status as a nonprofit entity. The work in this step varies based on where you operate, so you’ll need to review the documents that come back with your incorporation efforts.
A nonprofit can help you do a lot of good things for your community. Following these steps can help you get that process started on the right foot.