Starting a nonprofit is an amazing way to make a difference in your community. However, it can be easy to get caught up in dreams of effecting change and underestimate the time and resources it takes to start a nonprofit from scratch.
The process can be pretty overwhelming if you’re not prepared. This article explains the steps you need to take to start and grow a successful nonprofit. Keep reading to learn more!
How to Start a Successful Nonprofit
1. Do Your Research
The first step to establishing a successful nonprofit is to conduct thorough research. Ask yourself some of the following questions:
- Is there a need for your organization within your community?
- Are there other organizations with similar goals working to fulfill the same mission as yours?
- If there are other organizations, would teaming up with them to combine your energy and resources be more feasible?
- Is starting a nonprofit the only solution, or are there other alternatives for you to consider, such as fundraising for a cause or establishing a chapter of a pre-existing nonprofit?
- What hurdles will you face in the initial stages of your development, and how can you overcome them?
Consider these questions and try to find well-researched, practical answers for them. At the end of your research, if you find that your community would benefit from your organization, then follow the next few steps to successfully launch your nonprofit!
2. Develop a Business Plan
Like every other business, your nonprofit will also require a business plan that will serve as the elevator pitch to convince donors to provide funds for your organization.
Your business plan must include an executive summary of your goals, explain your organizational structure, describe your services and programs, outline your target demographic, propose a marketing strategy and a realistic financial plan.
This part of the process can take a while to complete as it requires a lot of dedication, hard work, and skill on your part.
3. Build Your Board
Your board of directors is a crucial part of ensuring your nonprofit’s success. The board oversees your organizations’ day-to-day operations, makes sure that all your activities promote your organizational mission, and helps secure the adequate funding required to execute that mission.
Recruit the right members to serve on the board by identifying key duties and responsibilities and drafting relevant job descriptions. Try to find board members who have expertise in finances, legal matters, and marketing. Also, look for well-connected people within your community who are comfortable asking for donations from their own networks.
4. Incorporate Your Nonprofit
The first step of the incorporation process is to choose a business name. Then decide on the legal structure of your organization; you can categorize your business as a trust, association, or corporation.
Ensure that all your incorporation paperwork meets state requirements before filing them. Finally, you need to apply for an Employer Identification Number (EIN). It serves as your organization’s social security number. All businesses need an EIN, irrespective of whether they have employees.
