3 Exciting Reasons Why You Should (or Shouldn’t) Start A Nonprofit – How to start a Nonprofit
How to start a nonprofit organization
There are many reasons why you might want to start your own 501(c)(3) [or even 509(a)(1)] and help those in need. Here are three of them. If any of these apply to you then having a nonprofit could be very helpful! If none of these apply…it may still be something worth considering starting down the line!
How To Start A Nonprofit: Step-by-Step Guide for Beginners Starting up your own charitable endeavor can seem like an insurmountable task if you don’t have what it takes to be an entrepreneur. However, starting a nonprofit isn’t like starting up a conventional business. Most nonprofits are simply structured and managed enough to get by without needing the kind of expertise you would need in order to make money off of your idea. That said, there’s still some groundwork that needs to be done before you can call yourself a 501(c)(3).
If any of these three things apply then you might want to consider creating your own non-profit organization: You Don’t Want To Make A Profit One reason why you may want to create your own charitable organization is that making money is not the point. Instead, perhaps what you really want is for things to operate under the guise of being charitable (and therefore tax-exempt) while also making sure that you control how the money is spent. While this may sound a bit duplicitous, it happens more often than you might think.
For example, let’s say that your company wants to get involved with charity but doesn’t want to be seen as a giant corporation taking advantage of those in need. Instead, what if they created their own non-profit organization? That way it would still allow them to collect donations on behalf of those in need yet it also allows them to protect their public image.
Another reason why you’d want to create your own 501(c)(3) is because. It Would Be Easier If your ultimate goal is simply to help people and/or animals then it might make sense for you to create your own non-profit. After all, if you’re going to go the distance and do this right then why not start from square one? For example, let’s say that you want to help homeless people find jobs by teaching them how to code.
That’s a great idea but as quick as it sounds like it would be–you’ll probably need more than just an idea before you could implement any of this. In case you haven’t guessed, starting your own 501(c)(3) is a lot easier than setting up your own coding class for the homeless. Let’s also not forget about all of those little administrative tasks that come along with getting started (like finding a place to host your coding class in the first place). Starting your own 501(c)(3) will allow you to do all of this from the ground up and get it off on the right track.
So how do you start a nonprofit? First, make sure that it’s legal!
In order to ensure that what you’re doing is not only ethical but also (and most importantly) legal–you’ll need to check with your state attorney general as well as find out if there are any federal regulations that affect what you’re trying to do. In other words: don’t just jump into starting a non-profit without making sure it’s actually legal. The good news is that doing so isn’t too difficult nor does it take much work. You just need to know how to find the right information and what questions you should be asking in order to get started.
Information you will need to start a nonprofit
Once you’ve confirmed that you’re indeed allowed to start a non-profit and that there are no federal regulations prohibiting what you’d like to do (more on this later) then it’s time for the easy part: researching. Yes, it may seem like a lot of work but all it really boils down to is contacting your state attorney general office along with looking up any applicable articles/statutes from authors who have written about your specific type of non-profit activity. These articles will make sure that what you want to do is both legal AND ethical even if you’re starting to feel a bit overwhelmed.
The first step that you’ll need to take is to search your state’s attorney general website and check for any information pertaining to charities (if there isn’t any then it’s probably not legal). If you come across an article on how to start/operate a non-profit then pay special attention so that you don’t miss anything along the way.
From here, search for articles that are related to the activity of your specific type of organization–for example, if what you want to do is support animal rights then go online and look up “animal charity” or “how to start an animal charity”. You should be able to find several articles from various authors who have already written about what you’re trying to accomplish. What’s great about looking through these articles is that they’ll tell you what rules and requirements you need to follow in order for your organization to be considered a non-profit (and how not following them will result in the loss of your tax-exempt status).
In other words, reading what others have said about starting a nonprofit will help remind you what you need to do as well as provide some helpful tips on how to go about doing it. Lastly from here, check out any local or state level laws that may affect what sort of activities are legal/illegal. You should find these by searching Google using keywords like “nonprofit resource guide” or “charitable organizations law“.
As long as what you want to do is legal and ethical then it should be easy from here: once you’ve gathered enough information and confirmed that what you want to do is, in fact, legal then all you have to do is make sure an attorney drafts up the articles of incorporation before submitting them to state authority or government office.
Have a question about how to start a nonprofit? Have you started your own nonprofit, and have some tips to offer? Let us know at Leverette Consulting Group! Leave a comment below!