How To Start a Non Profit

Every non-profit starts as an idea, and requires legwork, investment and passion in order to succeed.  With the proper planning, the rewards outweigh everything that it took to launch the organization.

1. Identify the mission of your non-profit.  Why are you starting the non-profit?  If the answer is, "To make money," then what you want to start is a regular business.  Take time to reflect on the service your non-profit will provide, the role it will play in its community, the people who will benefit directly and indirectly from the role played by your non-profit, and the methods by which it will succeed in its mission.  Write down your thoughts and revise until you feel that the statement fully and succinctly captures the purpose of your non-profit.  At that point, you've successfully written a mission statement.

2. Choose a name.  Your non-profit will preferably have a name that captures not only its mission, but also its spirit.  The challenge is to create an appropriate, memorable name without infringing on trademark or unwittingly choosing a name that already exists.  Be as exhaustive as possible in making sure.  You may start simply by doing a search online for your name, and see what appears.  Check to make sure you cannot already find the name in the Federal database of trademarks.  Search in any related publications, and look for lists of organizations (like the lists in Wikipedia, for example).  It couldn't hurt to ask your local branch of the National Council of Nonprofit Associations about potential names.

   Once you feel that you've exhausted the search, and conclude that your name is unique, now it is time to do the same for your website!  Again, try to select a succinct domain name as close to your non-profit name as possible.  You can use NetworkSolutions to check availability.  Remember, not all non-profits use the same top-level domain.  ".org" is very common among non-profit organizations, but isn't the only top-level domain that non-profits use.

3. To incorporate, or not to incorporate?  Do you want your non-profit organization to extend into the future regardless of your own personal involvement?  Do you want it to continue its mission potentially after you have moved on to other business? Would you like you're your non-profit to be its own legally separate entity, capable of owning property and holding its own bank account separate from you or any individual?  If so, then formalize your organization by incorporating in the state where it will function.
   • If you incorporate, you'll have to have enough board members to satisfy state regulations.

   • In order to incorporate, you must create articles of incorporation, which legally outline the purpose of your non-profit and the authorities and responsibilities of the board members.  Your mission statement will be required as you incorporate.
   • After incorporating, you can set up a bank account where you are convinced that your non-profit will receive the best service.
   • Even if you keep your non-profit informal and choose not to incorporate, you can still protect your non-profit's name by getting it trademarked through the Patent and Trademark Office.
4. Tax exemption.  You can file for tax exemption when it comes to federal, state and property taxes.  Filing for federal and property tax exemption is done through the IRS, while state tax exemption is filed through the state.  Research IRS rules pertaining to tax-exempt status of non-profit organizations, but you would also be wise to hire a lawyer.   
5. If you are not sure how you'll make ends meet initially, look for non-profit incubators in your area.  Non-profit incubators will help you find resources and tools when you may not have the financial oomph to gather them in conventional ways on your own.  Your local chapter of the National Council of Nonprofit Associations is a good place to contact.

   Also, thoroughly research your local non-profit community prior to starting your own non-profit as well.  Are there well-established non-profits whose mission is related somehow to yours?  From preexisting organizations, aspiring non-profits can often gain the support and financial investment to launch.

6. Consider hiring a financial expert if you or other board members are not financial experts.  Financial requirements and documentation for non-profit organizations are not to be taken lightly.
7. Hire a lawyer who can help you create your articles of incorporation, review all legal documents and help you file for tax exemption with the IRS.