There are times when we have the need of a non profit status even if our business is operated from home, such as a smaller animal rescue or a self help organization.
In a circumstance such as this, having the tax exempt status that is afforded to one kind of non profit (a 501c3) would be very helpful in managing costs and does have the added benefit of lending a certain legitimacy to your efforts.
To begin your own non profit is not all that difficult but does require that certain steps be taken and certain things be taken into consideration
* Research, and expand your understanding of what a non profit really is.. It is in fact an organization that supports some mission or issue of importance to the public interest, or a charity, for a non commercial reason.
* There are several kinds of non profit organizations and not all of them are tax exempt, and those which are, are bound by c certain restrictions in their workings.
* Formulating a mission statement is necessary for formation. As a non profit your existence is defined by what your purpose and services will be. The mission statement should provide that in clear concise terms to allow anyone who is reading it to know exactly who you are and what you plan to accomplish by your non profit.
* Create a board of Directors. This will mean taking some careful consideration and recruiting members that you believe have the skills and talents that will best allow for the growth of the group and the fulfillment of the mission you have stated.
* Articles of Incorporation:
These articles of incorporation must be filed to provide for the official formation of your group. They will protect you and your staff from any legal liabilities by making the corporation itself responsible for debt arising from the groups activities not those who run or work for it. Each state has differing rules and legal strictures for what is necessary to incorporate in your state. Do check with an attorney if you have any questions as to what is necessary in your state to file the articles.
** Each organization will require bylaws, which are more or less the rules of their operations as an organization. They are not necessarily needed, however they will help to keep everyone clear on where the group stands and what responsibilities and rights that you have inside the non profit.
** Write yourself a beginning budget. Determine what you have for opening operating costs, how you will meet those and what your objectives are for the money as well as how you will spend future income.
Plan for future expenditures by deciding now how you will spend what you take in, and what purposes you will use your funding for, as well as a plan of fund raising.
** Create your own good and sensible record keeping plan, and save all documents as required by law, including any financial statements and minutes of any meetings that are held.
** Get an accounting system started, and a bank account if possible.
Working with an accountant might be a good idea if you don not have an officer who is familiar with accounting practices.
It is absolutely imperative that responsible and exact financial management takes place that provides for today and plans for tomorrows needs.
** Apply online for your EIN, even if you do not anticipate taking in employees, this is necessary to move on to the next step.
** File for your 501 status. To be tax exempt and achieve 501 c 3, you must get form 1023 and instruction booklet from your IRS office or download it from the Internet.
** File for state or local tax exemption as well as federal.
According to Wiki How, here is how to find a board member for your organization.
” What to look for in a board member: Look for individuals whose values reflect your statement of purpose. Although it is recommended that the majority of your board be consumers, include the community at large, not just your specific community of focus (e.g. the mental health community). Consider the religious community, local service clubs, legal professionals, and colleges and universities as sources for prospective a Board of Directors. Do not overload people who already serve on many committees – seek a balance between old and new leadership.”
To learn a lot more about non profits, how to form them and where to go to seek financial and legal assistance, pay a visit to Start a Non Profit.
bem
July 27, 2009
my name is brenda im 22 and i am a mom that wants to start my own nonprofit organization for kids but dont know the first thing i have to do
August 22, 2009
Hello Brenda,
I am writing to inform you that the very first thing you have to do to start your business is to come up with a name of the organization. Submit it to the Sec. of State. to make sure it is not taken, if it isn’t then you can pay your 50.00 to reserve your name with them. Ask them what site you need to go onto to download the form to fill out. i have some attorney’s that you can contact they will help you file yoour 501c3 on a pro Bono Basis. I am currently endeavoring toward my vision and I hope to be of assistance to help you with yours. May YAH Bless you and your Child.
September 10, 2009
Hello! I am 19 and really have been wanting to start my own nonprofit orginization. I already have a name for the org. and know what direction I want it to go in…please help!!! Thank you it will be GREATLY appreciated!
November 3, 2009
Enter Your Comment
Hello, I AM Interested in sarting my own non-profit already have a name. I want to give aid to elder and other people in need provide clothing for people who lose their homes to fire i also want to start a group home.I JUST DON’T KNOW HOW TO GO ABOUT GEETIN THE GRANTS IAM READY TO REGISTER MY BUSINESS
January 2, 2010
I have a non profit and i would like more info.
March 7, 2010
I think not-for-profits are a great idea – well done!
April 6, 2010
Hi, My name is Shirley and I would like to start a non- profit org but don’t have a name for it yet just a vision. I would like to know how to get started. Please help!!!
May 20, 2010
Hi, my name is Renae and I’m a teen. I currently have a sister who is suffering from a life-threating problem… and I have this motivation to help the kids out there who are suffering from Cancer or other life-threating problems. Though, since I’m a 14 year old, I don’t know how to start or what to do to help these kids…
Any help?
June 27, 2010
Hello, my name is Evangeline and i want to start my own non-for-profit organization. I want to open a shelter for women and children that includes food, clothing, daycare for tha women who are lookin for work or in school, and all of tha necessary ammenities to assist them in getting started and getting on their feet. I have a name but i dont know how to get started.
August 3, 2010
I am a grandmother who would like to start a non-profit.
I am raising my grandson alone,and the needs are tremendous. I would like to help others struggling to raise children alone. But I really need your expertise. I read your comment to Brenda and think it is better than great, that somebody is out there willing to help someone else. Is it possible for me to get on a Pro Bono bases, as well, with the Attorneys you mentioned? What is your recommended first step towards getting started?
October 2, 2010
I am 26, a stay at home and I have always wanted to start a non profit organization for the abused, neglected, homeless children. I have no idea on where to start! I need someone to please give me direction and how to go about doing this!!! Thank you!
October 19, 2010
Hello, my name is Jazmin although I’m only seven years old. I’m going to start a nonprofit business for women and children. I’m currently writing a business plan to be approved by my mom are their any suggestions from here? thanks
November 18, 2010
hello my name is jenice i’m 25 and i have always wanted to start my own non profit organization i want to open a home for teen age girls with babies cause i was a teen mom myself i have a vision as to what i want don’t have a name yet though but i just don’t know how to get it started so i was wondering if there were anyway u could help me out i would really appreciate it so could u email me back and let me know what u think thanks.
January 2, 2011
Help !!!! I want really have a wonderful idea for a non-profit organization and I am pushing to have this done ASAP. If there is anyone out there who could help me out please, please do so. Thanks in Advance
April 18, 2011
hi my name is kenja and for several years now i have wanted to start my own non-profit.Ididn’t go through it because i had things in my life goin on that i had to get straight.I’m livin my life and i have 5 beautiful children and one thing i want to do is work with our youth in my community.I just don’t know where to begin or who to get advice from that can point me in the right direction.Can u please help me.thank you very much for your time.
June 16, 2011
My sister was left with nothing from her hubby i fill so bad and cant help as much as i wont but i wont to start this do to her pain, I have a name for it!! Your color my world , This name mean’s that every that help is bring corlor to there life , Not letting them give up!! If any one know’s more info plz let me know !! I would like to get this up and started
June 17, 2011
Hello Miss Carpenter, my name is Tye and I too am looking to start a non profit. i already have a name and am ready to fill out all necessary paper work. Do you think that you could email me that list of pro bono lawyers to help me out?
Thank you
July 11, 2011
Miss Carpenter, can you share the pro-bono lawyer info with me so I can get help filing for my 501c3? Thanks!