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» How To Start a Non Profit Organization

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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.



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