Can I Start My Own Nonprofit Organization? Starting a Nonprofit: Is It a One-Person Job?

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The journey to start a nonprofit alone is undeniably ambitious. You can start an NPO with no money, or at least a small amount to cover registration costs and legal fees. Tax-exempt nonprofits often make money as a result of their activities and use it to cover expenses. As long as a nonprofit’s activities are associated with the nonprofit’s purpose, any profit made from them isn’t taxable as "income."

The exempt purposes set forth in section 501(c)(3) are charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and preventing cruelty to children or animals.

We are here to help guide you through this process and teach you how to start a nonprofit organization.

Key Considerations

  • Define your purpose and values. It is important to have a clear scope and purpose, given that there are already over 10 million nonprofits in the world.
  • Nonprofits require a minimum of three board members.
  • Generally, you need an investment of at least $500 at a minimum for initial expenses.
  • Nonprofits are sometimes referred to as non-stock corporations, or 501(c)(3) organizations—depending on their tax-free status.

Becoming the CEO

You may be asking, "Can I start a nonprofit myself?" and the answer is yes – anyone can start a nonprofit. This includes taking on the role of CEO or Executive Director as your organization grows.

All nonprofits are governed by a board of directors, which is legally responsible for ensuring the organization adheres to its mission. Nonprofit corporations also have officers, such as a president, secretary, and treasurer.

The Process of Starting a Nonprofit

Starting a 501(c)(3) usually involves:

  1. Incorporating a nonprofit organization at the state-level by filing the Articles of Incorporation.
  2. Applying to the IRS for recognition of tax-exemption.

Skipping incorporation is not advisable for various legal and operational reasons.

Remember, the exact investment amount to run a nonprofit can vary widely, with an average figure of $123,362 from an analysis of tax filings by 4,587 charities.

Note that for smaller nonprofits, the titles “President” and “Executive Director” are often interchangeable, both commonly used as the title for the founder.

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