Site Loader

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.

Scott Larson