Setting Up a Non Profit

Setting up a non profit organization can be a worthwhile project, but it can also be a lot of work. Many people don't realize all of the steps that go into setting up a non profit organization or non profit agency.
 
 
A non profit, also known as a not-for-profit, is set up to benefit a particular cause or a number of different causes. As the name suggests, the organizations do not make a profit and exist only to raise money that is given to the particular cause or causes for which they advocate.
 
Costs for operating and paying employees in non profit jobs are generally the only things for which a non profit keeps money. These organizations only keep money they need to stay afloat and filter all other money into their causes.

Getting Started

To get started with setting up a non profit organization, you must first have a vision and do your homework. Choosing a cause or multiple causes for your organization is the first step in the process. Be careful not to choose too many causes, as splitting the time of your organization may be too much trouble and may confuse potential beneficiaries.
 
In general, setting up a non profit organization is not something a person can do alone. Gathering a team of people is the best way to go. Make sure that:
  • members of your team are not going to try to create a for-profit system
  • members of your team are trustworthy
  • members of your team can work well together and put in enough time with the non profit organization
  • members of your team share your vision and ideals on your non profit's cause.
Having a team you can trust can ensure that setting up a non profit does not become overwhelming and that you get new ideas and innovation for your organization.

Finances

When starting a non profit, do not seek financial backers and beneficiaries until you yourself have contributed to the organization. You can hardly expect others to believe enough in your organization to donate if you do not.

Naming Your Non Profit

A name is an important part of a non profit organization. You'll want to choose a name that:
  • is easy to remember
  • is simple and relatively short
  • is related to your cause.
The same goes for your Web site: Your Web site name should be easy to remember, simple and brief so that visitors can easily return to your organization's site.

Non Profit Practices

The best way to learn how to run a non profit organization is to get advice from those who already know how. Contact a leader at an organization that is established and that you respect and explain your situation. Most non profit leaders will be more than happy to help you set up your non profit. Just be careful not to approach a non profit that will be in competition with your own non profit organization.
 
Many new non profit leaders should also consult an attorney to review paperwork requirements, IRS requirements and requirements specific to the area in which the non profit will be operating in. Requirements for non profit organizations can vary in different states and cities, so it's important to consult an expert to make sure that your organization is in compliance with all rules and regulations.
 
Resources
 
1800Net (2003). What You Need To Know To Set Up A Non-Profit Organization. Retrieved December 11, 2007, from the 1800Net Web site: http://www.1800net.com/nprc/howto.html.
 
WikiHow (n.d.). How to Set Up a Non Profit Organization. Retrieved December 11, 2007, from the WikiHow Web site: http://www.wikihow.com/Set-up-a-Non-Profit-Organization.