IRGUHAN NG MGA INFANTAHIN: What Comes First When Starting a Nonprofit?

Research and planning are the first major steps in starting a nonprofit organization. Without them, your nonprofit will be less organized, less efficient and, as a result, could even lose future funding. Temper your enthusiasm to make a difference; think through your reasons for starting a nonprofit, how your plan to structure and fund it and what your competition is before you file any incorporation paperwork or apply for federal tax exemption.

Nail down exactly what you hope to accomplish and how you plan to do so. Ask yourself whom you want to serve and how you want to serve them. Ask yourself if your idea for forming a nonprofit is realistic, whether the service you plan to provide is actually needed, and if it fills a service gap left by others in your community. (Your community does not have to be limited to your geographic area. The "community" can also include other nonprofits providing similar services.)

Think about whether you really need to start a nonprofit. You can also work with a few nonprofits to start a special initiative, volunteer, join a nonprofit as a board member or staff member, start a local chapter of a national organization, have an unincorporated association (with less than $25,000 each year in income), find a fiscal sponsor to help with administrative and fiscal responsibilities or start a for-profit business.

Study up on what other nonprofits there are in your area. Find out whom they serve, what their programs are and anything else you can about them. These can serve as your organization's partners as well as your competition for grants and other resources. It is important not to duplicate any of their services. Ask yourself what different services you will offer to members of your community.

Think about how you plan to get money for your organization's start-up and ongoing expenses. Will you offer a product or service for a fee to the public? The money you make would go right back into your organization's programs. Research potential grants for which you could apply. Consider how you will create a demand for your organization's service over time.

Remember that your organization can remain an unincorporated organization as long as it does not employ anyone and its revenues are less than $25,000 annually. This gives your organization time to continue to focus on its programs before it moves on to possibly finding a fiscal sponsor to assist in reporting requirements, administrative responsibilities and to let your organization use its tax-exempt status. The next step is state incorporation and then federal tax-exempt status.

Once you work through these issues, it is time to begin thinking about other resources you will need for your nonprofit. If you do not have a head for numbers, you should think about finding someone willing to work with you who can help you keep the organization's books and report its income to the IRS. If you are not so good at marketing, think about recruiting board members with expertise in getting the word out. Define where you will have your nonprofit's offices and other materials and supplies you will need to get started.