Monday, October 16, 2006

How To Start Your Own Non-Profit Organization

Want to start a non-profit organization and not sure where to start? This is and can be a long, involved process and takes some time and consideration, least of which is to decide whether to go non-profit or for-profit, as (as ludicrous as it may seem) there are less regulations behind a for-profit than a non-profit.

There are a few requirements that you will need to consider and these are as follows:

  1. Determine that you really need to start a non-profit. There is more regulation and administration work involved in a non-profit organization than a for-profit.
  2. You will be asked to define your charitable purpose and will have regulations that will govern the amount of compensation to your board of directors and/or officers. So you need to have a clear outline of your strategic plan and case statement to ensure this meets standards.
  3. Check with your local state or country to specific requirements within your area.
  4. Check with your local tax department (IRS for the States)with regards to the necessary forms that you will need to complete. Determine what type of entity classification you will use. Not all will have tax-exempt status.
  5. If you have any questions, make sure you consult an attorney or solicitor (you will need to do this anyway) to ensure you understand things clearly.
  6. Depending on organization requirements, you may need to develop a set of bylaws to guide the operations of your organization, and a set of articles of incorporation. The bylaws are important and must be set up correctly. They should provide instructions as to the selection, responsibilities, and continuance of board members, membership requirements, officers, deposits, committee structures, notices, and other personal and insurance questions as they relate to the operations of the specific non-profit business.
Phew, there is a lot to digest, but it can be very rewarding running a non-profit organization... you only have to look around the world to see that there are thousands already in place to know that it is a worth while procedure. You just need to make sure that you have the right information, structure and attonery when setting things up.