A Quick Guide to Launching a Nonprofit Organization
The world can always use more nonprofit organizations to support important causes such as education, human services, health, and the arts — and fortunately — getting a nonprofit up and running is a lot easier than you’d think. These tips and resources courtesy of Stokhaus Media will help you with everything from launching your nonprofit organization to raising funds and managing your new team! For two years, we helped a local Medford, Wisconsin non-profit raise over $250,000 dollars and produce a fully state-licensed summer camp for kids twelve and under. Much like any other business, nonprofits require a solid business plan and leadership to be successful in a very saturated market. Regardless of how great you think your idea is, you still must have people and communities who deeply believe in what you’re doing and who are willing to put their money behind their beliefs for a longitudinal commitment.
Starting a Nonprofit Organization
Starting a nonprofit is similar to launching any other type of business. Here are some steps to take as you get the ball rolling.
Choose a great business idea for your nonprofit organization.
Write your nonprofit mission statement. Your mission drives every part of what you do.
Decide on a legal structure. Several types of nonprofits include limited liability companies, unincorporated associations, corporations, and trusts.
Look for startup grants and other types of nonprofit funding.
Fundraising and Financials
To meet nonprofit rules and regulations, there are several things you should know about fundraising, annual filing, and tracking your organization’s financial health throughout the year.
Familiarize yourself with your federal and state filing requirements.
Know the costs associated with forming your nonprofit legal structure. For example, here’s more on the Wisconsin LLC cost and nonprofit corporation cost.
Prepare and keep up on five financial documents: Your statement of financial position (SOP), statement of activities, statement of functional expenses, statement of cash flows, and annual report.
Set fundraising goals, build relationships with donors, and show appreciation for the support of your donors.
Nonprofit Management and Marketing
Once you’ve launched your nonprofit, you’ll need to market your organization and build your team of board members and employees.
Learn how to effectively govern and manage your new nonprofit organization.
Build your team of paid employees.
Running a nonprofit can be a rewarding experience, but there are many rules and regulations you’ll need to follow in order to qualify as a 501(c)(3) organization. And whether you’re starting a nonprofit that supports humans, animals, the environment, or another special cause, these tips and resources will help you to launch, fund, and manage your organization as effectively as possible!
What You Need to Know to Start Your Own Nonprofit
Setting up your own nonprofit might sound like a daunting task, but with a little hard work, careful attention to detail, and effective organization, you can make this dream a reality.
Here are the things you need to know as you’re setting up your nonprofit organization.
First steps
Establishing a nonprofit organization is much like starting a business, with a few key differences.
Recruit initial directors for your organization. These folks will sign the Articles of Incorporation and help you make the business a legitimate organization.
Get a registered agent. These professionals are the ones who are informed when your organization is faced with legal proceedings.
File your Articles of Incorporation either online or by mail. This will help you meet 501(c)3 status later in this process.
Apply for your tax-exempt status (otherwise known as 501(c) status).
If your state permits it, create an LLC for easier paperwork. To save on Wisconsin LLC cost, use a formation service instead of an attorney.
Obtaining funding
Your nonprofit organization needs to use philanthropy and fundraising techniques to obtain enough funding to operate.
Before doing any fundraising, you need to check and see if you are required to register in your state or province.
You need to have an effective fundraising plan. Outline your strategy by listing goals, audience, timeline, and granular tasks necessary to activate that plan.
Make sure you understand your budget and work within those parameters.
Administrative tasks to focus on
Running your nonprofit depends on maintaining meticulous records and filing paperwork on time.
Organize your records using cloud-based tools like Google Drive, Box, or DropBox.
Managing staff is part of running your nonprofit -- the people are the heart of your operation. Invest in automated solutions to track employee time.
Nonprofits need to be able to produce tax-exempt forms and returns upon request.
Board meetings, meeting notes and minutes, and specific financial documents (which may vary based on state or province) are all things that are public record. Organizing these things so you can easily access them will save you a headache down the line.
Using these tips, starting and running your own nonprofit is within your reach. Good luck on your new endeavor!