Starting a Nonprofit

Before signing the incorporation documents, and applying for income tax exclusion from the IRS, in order to create a nonprofit it is necessary to fit into place a solid strategy just as in the case of any business. In the attempt of separating from the many nonprofits formed everyday, hard work is required, especially in the struggle for resources. An important aspect is that the services provided by an organization will need to be a superior compared to the competition and have an established advantage over the market. In addition, a certain nonprofit must be realistic and fit an unprovided need in the community, all this implying a thorough research of the competition and the type of services they offer.

Forming a nonprofit must start by identifying a benevolent objective that inspires the founder and a group of apprehensive people willing to get involved, followed by recruiting the staff of the community who assistance this idea. In order to develop a group with diverse enough qualities and resources that can aide in satisfying the purpose. Also a mission statement defining the purpose must be stated, providing the individuals with concrete objectives to direct all their energies to. The next step consists in finding the money and developing the funding methods for a particular organization, especially by looking for local, state and federal government sources that can provide these funds through grants. A necessary action might also prove to be that of inquiring about other existing organizations that can provide similar services, such information being found mainly in the yellow pages, public library, or by contacting local state association for listings of these agencies. An initial Board of Directors must be created next, having as members individuals willing to put forth the required time and effort to the organization. A Certificate of Incorporation for the founding body into a nonprofit organization will then be necessary, for this being required legal assistance. The decisions the Board of Directors and even other members will make on behalf of the corporation will become legal through bylaws that must also be drafted.

Electing the board and drafting the bylaws will be the main subject of the first board meeting, along with authorizing the Tax-exempt status, and the corporate bank account; filling an application to the postal service for third class bulk mailing rates (which can save a considerable amount of money): and approving the payment of organizing expense and filing fees. Although more demanding than the following meetings, this first one is important for building the foundation necessary to the success of the non-profit.