Non-profits provide essential services to communities.

Giving back to the community has never been more important. And with so many people turning to others for help these days, non-profit organizations are thriving.

These organizations can be a lifeline to others; offering food, supplies, housing, resources, and aide to some of the most vulnerable people.

So, if you have a great idea, and want to give back, you might be thinking, ‘how can I start a non-profit?’. To streamline this process, we’ve outlined the 5 things you should do.

1. Define the Mission

Every non-profit organization has a mission. This mission should be simple, clear, and easy for others to grasp. After all, it will be its main focus.

Take a moment to think of what it was that inspired this idea. Whether it’s inadequate housing for others or getting food to underprivileged communities. You will need to zone in on a specifically defined purpose. Doing so creates a singular focus that will help identify business relationships and partners.

Without a clear understanding of what you are doing; the focus of the non-profit can get skewed. And when the message is unclear, the purpose of the organization can be misunderstood by the public.

2. Commit to Market Research

Once you identify the mission of your non-profit, you will have to commit to some serious market research on the topic. To do this, explore the niche you’ve picked.

Some of the things you should be looking for are the areas you’d be targeting, the demographic, potential donors, funding, and more.

There could be other companies (for-profit or otherwise) that could potentially impact your ability to succeed. Without the research, you could find it difficult to find donors as they could already be linked to others.

Ultimately, research will help you realize if your non-profit is sustainable.

3. Determine if It Will Cost Money

Every business needs a plan. And, this is true even for non-profits. A business plan is a clearly defined document that outlines your mission, and how you will achieve it.

Depending on the scope and reach of your idea, you might also need a significant amount of funding to make it happen. Everything from packaging, transportation, workers will need to be thought through (and budgeted for).

Once you determine a rough figure of how much you need, you will have to determine how to get it.

Funding can come from a variety of places such as corporations, private foundations, federal, state and city governments, grant writing, and more. So, be sure to explore any (and every!) possible avenue for funding.

4. Explore Incorporating

To officially be categorized as a non-profit organization you will need to legally incorporate. Meaning, you will need an official charter. However, this process can be intimidating, which is why it’s best to speak with a professional (such as us at A.P Tax and Accounting) to walk you through the details.

Known as the article of incorporation, this document will be used to define your non-profit as a legal entity. And, is required by law.

Simply research your state’s nonprofit laws, and fill out the incorporation form with the required information (legal name of organizing, location of its operation, name, address, and initial of trustees or board members) to apply.

5. Fill Out Tax Exempt Forms

Once you are incorporated you will need to get exempt from taxes! Following the submission of the charter, you will receive a 501(c)(3) tax-exempt status. This status will enable you to accept donations, grants, and basically function as a legal non-profit.

Although intimidating, starting a non-profit is easier than you think. Not only are non-profits charitable organizations, but their lifelines for many of the people that rely on their aid. If you have an idea and are interested in starting your own non-profit, get in touch with a member of our team.  

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