How to Start a 501(c)(3) Nonprofit Organization
You have a cause you are passionate about and are exploring the idea of starting a nonprofit organization to address the issues around your cause and make a lasting impact. Starting a nonprofit is a phenomenal way to do so, but it can also be a challenging process that requires careful planning and execution. If you're considering starting a nonprofit organization, here are ten steps to help guide you through the process.
Identify the name, mission, vision, and values of the nonprofit. This involves identifying the problem or issue that the nonprofit aims to address and the impact it hopes to make. (Don’t worry, the nonprofit start-up bundle includes a “How To” for this!)
Research to gather information about the need for the nonprofit in the community you are planning to start in. This can include identifying and talking to organizations already in your community about the needs they see and organizations that work on similar issues (they don’t have to be in your community!).
Select and recruit individuals to serve on your board of directors who are passionate about the cause and have relevant skills and expertise. This can include individuals with legal, financial, marketing, or programmatic knowledge. (A list of the board of directors’ duties and responsibilities is included in the Nonprofit Start-Up Bundle).
Develop your bylaws, which are the rules and procedures that govern the nonprofit organization. This should include details on the roles and responsibilities of the board of directors, the mission and purpose of the nonprofit, and the rules for making decisions and managing finances. (Don’t worry, a complete bylaws template is also included in the bundle).
File for the legal documents to incorporate your nonprofit organization as a legal entity with your state. This involves filing articles of incorporation (also included in the bundle!) and other documents required by your state.
Apply for tax-exempt status with the Internal Revenue Service (IRS) by filing Form 1023. This is necessary to qualify for tax-exempt status and to receive donations that are tax-deductible for donors.
Open a bank account for the nonprofit organization, establish financial policies and procedures, and develop a system for tracking income and expenses to ensure that your organization complies with the financial reporting requirements of a 501c3.
Recruit your friends, family, and community members to volunteer at your nonprofit organization. Along with your Board, they will be your first “stakeholders.” You’ll need their support along this journey.
Develop a Fundraising Plan and a 3-Year Strategic Plan to ensure you start your nonprofit on the right foot. The key to a successful nonprofit is both a passion for its mission and excellence in its systems and strategies.
You did it! You are well on your way to making a huge impact in the lives of those you serve. Don’t forget to check out my resources that will move your nonprofit forward.
