• Are You Ready To Starting A Non-Profit?

    July 15, 2018
  • One of the most sought after question of how to start a non-profit successfully looms in the minds of many hopefuls. Starting a non-profit is more of a gamble in which many organizations perish faster than they sprout. In the US out of the 30,000 nonprofits created annually, 50% of the organizations fail. The reasons are not clear, however, lack of planning and management are cited as the major causes for this misfortune by business experts.

    Once you decide to do business, the next important thing to decide is whether it going to be a non-profit for the advancement of a specific cause or for-profit. The major difference between these two categories is that while non-profits utilize the revenue to carry out their specific programs, for-profit companies share the profits among its owners and stockholders.

    How to start a nonprofit successfully?

    Setting up a non-profit that promotes your social cause to enhance the quality of lives on earth can be affected if the handy keys are tagged along. This block by block illustration would empower you to set up a 501(c)(3) nonprofit entity in no time. In case you are on the looking for more comprehensive information on filing the documents, sample bylaws, and sample articles of organization this information is provided in my webinars, seminars or via consultation.

    Make a mission statement: A simple and snappy catchphrase in or two short sentences that form the essence of the objectives, values and ideologies of your organization. The mission statement should explain all the vital details like the people behind it, the line of action, its future goals and the area of operation among others. A good mission statement conveys your ideas clearly and precisely to the donors and clients consequently offering a jump start to any organization and its prospects.

    Setting up a Board of Directors. A board of directors is required for a nonprofit organization and the number of members might differ in various states. A perfect board that supports the mission could be a great driving force behind any successful nonprofit organization. The members should devote their time and talents in making the mission possible.

    Draft and File Articles of Incorporation. Articles of Incorporation form the official evidence of the formation of your non-profit organization, which should be filed in the corresponding state agencies. It is an important piece of document which shields you from legal liabilities that this organization might get into in future. It gives the responsibility of holding the debts and liabilities on the corporation and not the individuals operating the organization. Make sure to seek the legal aid from an attorney, experienced in non-profit law so that you do not end up getting sued by committing some major blunders.

    Draft Bylaws. Although non-profit organizations do not need to file the Bylaws for the 501(c)(3) status these could be a convenient rule book on the day to day governance of the organization.

    Allocate a budget. A budget is nothing but the financial plan of your organization that helps in achieving the organization’s goals. Without sufficient funding your objectives and missions might fall on their face. Bring in the start-up income and planning the disbursement for each expense could very well be your greatest challenge while setting up a non-profit. If you find budgeting difficult, you should seek professional advice.

    We work with non-profits to ensure they are running effectively, efficiently and in compliance. Contact our office for consultation so that we can discuss how we can affect your organization.

  • Spread the love