Research the Nonprofit Landscape
You’ll want to first learn the ins and outs of nonprofits, including local regulations and filing requirements. The How To Start a Nonprofit workshop for investors is a great place to begin. In this virtual workshop, you’ll learn about the benefits of starting a nonprofit, how to file your holdings properly, and strategies for success.
Write a Business Plan
A nonprofit is a business, which means it requires a business plan. This includes a brief summary of your core values, financial plans, and mission statement. You’ll want to outline exactly how you plan to earn revenue, where those funds go, and how you can continue expanding your business over time.
Select a Board of Directors
A board of directors is a leadership team that shares your nonprofit goals. Most new nonprofits form with a few board members; you can always add more later. Choosing members with specific skills, including legal, accounting, or real estate, can help you cover all the important areas of starting a nonprofit.
Plan the Nonprofit
Now it’s time to plan the nonprofit. This includes reviewing who the nonprofit aims to help, how it’ll earn money, and each person’s role in the organization. Legally registering your nonprofit requires completing and submitting your Nonprofit Articles of Incorporation. Applying for a 501(c)(3) tax-exempt status might qualify your nonprofit for tax benefits.
You’ll want to check federal and local state laws to find out if your nonprofit idea qualifies for tax-exempt status. Depending on where you live, you might also need certain federal and state licenses or permits.