Steps To Starting A Successful Non-Profit

There are a number of steps involved in the successful and legal creation of a new non-profit organization. Here, we've listed the basic steps for starting a non-profit. These steps are somewhat generalized as requirements can vary from state to state and from organization to organization, but they are useful as a guide through the process, as a preparation for things to come, and as a reference when consulting legal help and professionals.

Basic Steps For Starting A New Non-Profit Organization

The first step that is often recommended is to determine whether or not you truly need to legally organize as a non-profit entity. There are a number of options depending on the size, function, and goal of your group. Assuming you've explored your options, let's move on to the process of starting a non-profit:

1. Formulate your goals and mission statement
You will need this mission statement later as you file various documents, but primarily your mission and goals, are designed to focus the work and attention of everything your group does.

2. Form a formal Board of Directors and plan the first meeting
Your group may have a large (or small) body of dedicated volunteers, but for both the purpose of functionality and for legal purposes you will need a formal Board of Directors and Officers. This first Board should be chosen with care as this is the team that will carry the group through the process of starting your non-profit, and the group that will make critical decisions regarding bylaws, mission, goals, etc. This very much needs to be a motivated group who is willing to put in some targeted effort.

3. Reserve a name for your non-profit
This gives you an identity and is a legal requirement in most states.

4. Determine the legal type of non-profit your group should be
There are three legal distinctions a non-profit can be - a corporation, charitable trust, or an unincorporated association.

5. Identify a lawyer who will act in a consultant capacity and/or hire on for further work as needed

6. Write Articles of Incorporation and/or bylaws
This document will name your non-profit and designate your location and purpose. Some states require non-profits to draft bylaws as part of the Articles of Incorporation and some do not.

7. File legal documents to incorporate as a non-profit
Legal incorporation minimizes risk to the group, officers, and members.

8. Write a business plan and a budget
A plan and a budget give definite direction to a new non-profit.

9. Apply for Federal Identification Number, or EIN
This gives you a legal identification for purposes of taxes, banking, and accounting.

10. Apply for Federal Tax Exempt status
Usually, this will be the 501(c)(3) status; 501(c)(3) status not only grants federal recognition, but also serves as recognition for grant funding, donors, and other organizations.

11. As applicable, file for state recognition and/or (sales and property) tax exemption.

These basic steps will set you and your organization on its way to becoming a successful non-profit organization. Upon completion of these steps, you will be ready for the business of achieving your new non-profit group's mission and goals!

This is an article created by the FundraisingIP.com Editorial Team. For more fundraising ideas and fundraiser help, go to our article directory at FundraisingIP.com/articles.

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Should Our PTO File For Non-Profit Status - By : FundraisingIP.com Editorial Team

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