A Basic Guide for Creating Your Nonprofit Organization
If you’re starting a nonprofit organization, you need to have a clear goal in sight, plus a step-by-step plan for achieving it – just like you would for any business launch. The difference is that with a nonprofit organization, there are more steps involved. This is because nonprofit organizations must adhere rigorously to certain standards and principles, to maintain their status and qualify for funding.
The process may seem overwhelming but remember that it exists in order to help you create a nonprofit organization that really will serve the public and achieve the social purposes you are aiming for. Courtesy of Viwida USA, here are some general guidelines for getting a nonprofit organization started.
Know the difference between a nonprofit and a for-profit organization.
You could run into operational or even legal issues if you aren’t clear on the difference.
- A for-profit organization exists to earn a profit by selling its products and services, whereas a nonprofit exists to further a cause, promote a social perspective, or solve a problem.
- A for-profit organization is a private business owned by a private individual or organization, whereas a nonprofit is a public non-government-owned organization.
- Nonprofits secure much of their funding through donations, sponsorships, and grants.
- For-profits are controlled by owners and stakeholders who are trying to earn a profit through the business, whereas nonprofits are directed by a board of members who don’t profit from the organization.
- Nonprofit organizations have a tax-exempt status.
How to plan your nonprofit.
Running a nonprofit organization successfully depends largely on how well you planned it, before incorporating.
- Clarify the need that your nonprofit will be filling.
- Come up with a mission statement.
- Come up with a name.
- Write out a detailed business plan.
- Get funding for your nonprofit.
Steps to take to legally incorporate your nonprofit organization.
Once you have done all the work of planning, the project of making your nonprofit a reality should be a lot less confusing.
- Select a business structure for your new organization.
- Apply for your tax exemptions.
- Draft your organization’s bylaws.
- Appoint a diverse and qualified board of directors.
- Apply for any licenses or permits required.
Tips to keep your nonprofit organization successful.
Not all nonprofit organizations do well, unfortunately, no matter how good they are in theory. Here’s what you need to do on a practical level if you want not only to survive but thrive.
- Have a great marketing plan.
- Run your nonprofit like a business.
- Stay on top of your daily managerial duties.
- Remember, a single cyber threat can derail a business, so make sure you get serious about cybersecurity.
- Make sure you remain accountable, transparent, and ethical, so the public knows you are managing your finances responsibly.
- Always meet your reporting requirements.
The better educated you are about the nature and structure of nonprofits, the better equipped you will be to keep yours running well. So seek out as much information and as many resources as possible, talk to legal professionals and other nonprofit organizers, and never stop learning.
Viwida USA believes in helping women stand up, lean in, and be everything they can be. We also work to connect mothers and fathers with the resources they need to support and raise strong families; the foundation to a stronger, brighter, and more stable future for everyone. If you’d like to get involved, let us know!
Emily Graham