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Starting A Non-Profit: Getting Started
The million dollar question of how to start a non profit successfully looms large in the minds of many aspirants. It is more of a gamble where many companies perish faster than they sprout. In the US out of the 30,000 nonprofits created annually, 50 percent of the companies flop. The reasons are not clear however lack of planning and coordination are cited as the major causes for this debacle by business analysts.
Once you decide to do business, the next important thing to decide is whether it going to be a non profit for the promotion of a specific cause or for profit. The major difference between these two genres is that while nonprofits utilize the revenue to carry out their programs for profit companies share the profits among its promoters and stockholders.
How to start a nonprofit successfully?
Tip #1 - The Set up
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 look out of more comprehensive information on filing the documents, sample bylaws, and sample articles of organization are easily available on our website.
Tip #2 - Make a mission statement:
A simple and snappy catchphrase in or two short sentences that form the quintessence 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 is half your job done as it conveys your ideas clearly and precisely to the customers thereby offering a jump start to any organization and its prospects.
Tip #3 - Board of Directors
Setting up a Board of Directors. A board of directors is compulsory for a nonprofit organization and the number of members might differ in various states. A perfect board which supports the mission could be a great driving force behind any successful nonprofit organization. The members should devote their time and faculties in making the mission possible.
Tip #4 - Draft and File Articles of Incorporation
Articles of Incorporation form the official testament of the formation of your non profit organization, which should be files 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 rests the responsibility of holding the debts and liabilities on the corporation and not the individuals functioning in the organization. Make sure to seek the legal aid from an attorney, experienced in non profit law so tat you do not end up in a soup by committing some major blunders.
Tip #5 - Draft Bylaws
Draft Bylaws. Though non profit organizations need not be file the Bylaws for the 501(c)(3) status these could be a handy blue book on the day to day governance of the organization.
Allocate a budget. A budget is nothing but the financial plan of your company that helps in attaining the company goals. Without sufficient funding your objectives and missions might fall on their face. Garnering the start up income and planning outlay for each expense could very well be your greatest challenge while setting up a non profit.
In case you find the going hard, do take professional advise.
Find other Resources on our website. If you have more questions after reading (or in the future). Don’t be shy, leave a comment below the post or contact us.