1. I have an idea for a nonprofit. What are the initial steps I need to take in order to get my concept going? NONPROFIT FREQUENTLY ASKED QUESTIONS
1. I have an idea for a nonprofit. What are the initial steps I need to take in order to get my concept going?
First, consider a number of questions relating to your idea. What is the purpose of your intended nonprofit? Does your concept fulfill an unmet need in the community? Does the community really need the service you intend on providing? Could you better serve the public by partnering with an existing nonprofit? Once you have answered these initial questions, you should have a firm basis from which to begin. For a detailed checklist of steps to forming a nonprofit corporation, check with the Fresno Nonprofit Advancement Council or your local bookstore where many guides are available.
2. How can my organization gain governmental nonprofit standing and what forms or documents will I need?
The most favorable federal tax-exempt status is known as “501(c) (3).” A 501(c) (3) status not only exempts certain nonprofits from having to pay federal income taxes, but also makes contributions to these organizations tax-deductable to the donor. To create a nonprofit corporation, you must file paperwork with the state (Articles of Incorporation) and federal agencies and be approved with tax exempt status. To apply for recognition of tax exempt status, obtain a 1023 (application) and Publication 557 (detailed instructions) from a local Internal Revenue Service office or online.
3. How do I obtain grants or donations and where should I look? What if foundations don’t accept applications?
First develop a funding plan that includes several sources of revenue including grants, fundraising, and all types of donations. Today, grants and donors are most commonly found in annually published databases and online. If your organization is seeking monetary donations, these may be your best resources. If looking for materials or goods, petitioning for “in-kind” donations may be your best bet. Often, donor foundations have pre-selected causes and groups for whom they give. Many don’t accept applications. Writing a detailed letter about your group’s cause is always an option. Cite example of the work your nonprofit has accomplished thus far. While not necessarily a sure-fire way to earn grants, it provides you experience.
4. How can I be sure that the cause or service provided by my nonprofit doesn’t overlap another organization’s?
Do some research. Obtain a list of all regional and local nonprofits and inquire with each group if you have any doubts. Many groups do have overlapping areas of service. Assess your nonprofit’s potential based on the need of the community and existence of other nonprofits in your area. Consider working in collaboration with other organizations or even volunteering with them while you form your organization. This way you can “learn the ropes” and it may help you to better define what you want to do.
5. How is a board of directors chosen, how many members are necessary, and what role does it provide?
The board of directors serves the role of setting policies and steering the nonprofit in the right direction. The board must be committed to the nonprofit’s mission, willing to get their hands dirty, and willing to support efforts to raise money. An ideal board of directors will be diverse, committed, and well-connected to the community. A board should be no less than 5 members strong.
6. From what source of funding should the salaries of staff members originate?
The salary of a paid staff can derive from money granted to the nonprofit. A paid staff member should be considered only if your organization has accumulated a sufficient operational surplus of funds. A sole executive director or paid administrator may be alternative options.
7. How will my nonprofit locate volunteers and potential staff members?
Volunteers should be easy to locate. First and foremost, students make ideal volunteers. College and even some older high school students are often looking to get involved in worthy extracurricular activities. Members of the community at-large may possess skills invaluable to your organization. Many retired persons may be seeking activities to keep active and stay involved in their community. Contact your local
8. How soon can I expect my organization to gain nonprofit status? Is it wise to set a timetable?
The process will not happen overnight. Articles of Incorporation can be done in one day if you go to the local office of the Secretary of State, one month if you send them to
9. Is creating a nonprofit really worth the effort or should I look to team up with an already existing organization?
You may realize that teaming up with an already existing organization will save you much of the hassle associated with starting a nonprofit. While you decide, consider developing a relationship a similar organization and suggest becoming a project of that organization. If you decide to go ahead and create your nonprofit remember that countless nonprofits began as a unique set of ideas, thought of by people like yourself, and have since developed, grown, and thrived. It takes a great amount of effort and dedication, but in time, the result should be well worth the effort.
10. What services can the
The Fresno Nonprofit Advancement Council can provide your organization extensive use of resources at our